What is income security? It is about the level of income absolute and relative to needs, assurance of receipt, the expectation of income adequacy now, and improvement or deterioration in the future. Income security is about actual, perceived, and expected income.
In this article, I want to identify and encourage entrepreneurial ventures that can strive during any form of economic crisis.
For almost 2 years, the world has been faced with the COVID-19 pandemic which has taken the lives of millions. It has not only taken lives but has changed the livelihoods of many, having to conform to this “new normal”. As a result, many jobs became obsolete, and persons were left unemployed as businesses and companies scaled back on their employees. Similarly, many were left at home with nothing to do as the country placed many restrictions on movement. As of consequence, many Caribbean people came to the understanding that there is no such thing as “income security” and different business ideas were birthed so that they could continue to feed themselves and their families.
As part of my internship with Live Well Jamaica, my team and I are launching a campaign focused on this issue. The main message of the campaign is “being unemployed is not the end of the road. No matter one’s situation, one should seek other means in which they would be able to better their livelihoods.” In addition, the type of audience we believe would be interested in this campaign would be small start-up business owners between the ages of 21-30 years. The campaign focuses on how we can help small business owners secure their income and be adaptive to change.
So, to help you understand income security and to help you strive during any economic crisis, I have interviewed an individual who has given insight on what could be the problem and how we can solve this issue. We had a very great conversation on the said matter. The name of the said individual above is Mr. Julien Henry who is a Programme Manager in the Entrepreneurship Unit of the Department of Management Studies and Faculty of Social Sciences at the University of the West Indies, St. Augustine campus.
In my conversation with Mr. Julien, the problem many people face now is figuring out how to obtain a sustainable income or in other words, income security within their business.
You may be asking how so? Well, when the pandemic hit back in March of 2020 a lot of persons lost their jobs and this resulted in small businesses being rooted into existence. Some might say, starting a business is easy but let us be real it is not because there is a lot of financial planning and other resources that need to be put in place before it’s really opening. There are those individuals who start without organizing and planning out what they really need or the type of small business they want to operate and what it takes to upkeep it. Business would be doing well for them until a crisis jumps into action (Covid-19). When there is no income being produced and they have to deal with their daily living, money becomes scarce. If they have no backup plan, it becomes difficult to keep track of money. Also, this could mean persons are not understanding what type of business they want to operate. Rather than figuring it out first, they delve right in, not knowing how to secure their own income.
It is especially important to understand that these considerations are necessary for starting a pandemic-proof business. When we realized this problem area, we had to have a solution to this situation and Mr. Julien proposed that individuals need to adapt their mindset to change and start managing their own money.
Take short courses in Data Management to better track the receivable list, whether it be a small or large business. Receivable list or Account Receivables is when a customer buys/sells a product and then liaises with the company on an agreeable date to pay them the money. So, depending on what type of business you have and the products or goods you are servicing, you should always have a database; a list of customers written down along with the number of products/goods they bought.
Also, Financial Planning is important. Learn to budget and forecast revenues and fees. A financial plan will help you to manage the long-term finances so you can achieve your goals navigating financial barriers that inevitably arise in every stage of life. Revenue forecast comes in to help with the calculation of the amount of money that a company will receive from sales during a particular period. In focusing on these things, we can implement 6 steps:
- Gather Client Information
- Establish Goals and Objectives
- Analyze Financial Situation
- Develop and Present Financial Plan
- Implement a Plan
- Monitor and Review Financial Plan
The global market and technology sector are ever-changing rapidly but you must keep upgrading your business to withstand any economic crisis.
