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Opinion

Why every worker can’t start their own business

Have you ever noticed how some people seem to think that the solution to worker exploitation is to for everyone to just start their own business?

Often, when I discuss worker exploitation, someone pops up in the comments with something along the lines of the following: “If the workers don’t like it, they can just start their own business”.

The dream of entrepreneurship, with its promises of autonomy, financial independence, and creative fulfillment, might seem alluring. However, the notion that every worker could feasibly start their own business faces formidable challenges, and even if achieved, it wouldn’t alleviate systemic worker exploitation. Plus, if every worker became self-employed, who would be left to perform the jobs that currently exist?

Entrepreneurship is often romanticized as a pathway to prosperity, but the road to success is riddled with obstacles—financial barriers being one of the most significant.

Starting a business requires capital for everything from product development and marketing to office space and equipment. Yet, access to funding is far from equitable, with marginalized communities facing disproportionate challenges in securing loans or investment.

Moreover, the risks inherent in entrepreneurship are considerable. Not every venture succeeds, and failure can have profound financial and psychological consequences.

The fear of financial ruin acts as a deterrent for many would-be entrepreneurs, particularly those lacking the safety net of inherited wealth or familial support. It’s this same fear that discourages workers from trying to organize their workplaces or look for another job.

After all, if you can’t afford to risk your livelihood for workplace unionization or working someplace . . . less bad, why would you risk it to become someone else’s boss?

Beyond financial constraints, structural inequities and systemic discrimination further compound the challenges faced by aspiring entrepreneurs. Marginalized communities, including women, people of colour, and individuals from low-income backgrounds, encounter barriers at every turn. Discriminatory lending practices, limited access to networks and mentorship, and biases in funding decisions perpetuate disparities in entrepreneurship.

Moreover, the regulatory environment can be daunting for small businesses, with compliance costs disproportionately impacting entrepreneurs from underserved communities. Licensing requirements, zoning restrictions, and bureaucratic red tape create additional barriers, particularly for those with limited resources or expertise.

Even if every worker were to embark on the entrepreneurial journey, it would not address the fundamental issue of systemic worker exploitation. In fact, the mass exodus of workers into entrepreneurship could exacerbate existing inequalities and labour abuses.

As I stated earlier, if every worker were to become self-employed, who would fill the jobs that exist now? People will still order their morning coffee, still buy groceries, and still purchase countless goods and services produced by workers.

The reality is that many jobs simply cannot be outsourced or automated, and the demand for goods and services would persist regardless of changes in the labour market.

Furthermore, the concentration of economic power in the hands of a few corporations enables exploitative labour practices to flourish.

The gig economy, characterized by precarious work arrangements and minimal job security, is a stark example of how technological advancements have been leveraged to circumvent labour protections and drive down wages.

Addressing systemic worker exploitation requires a multifaceted approach that goes beyond the rhetoric of entrepreneurship. While entrepreneurship can be a valuable avenue for economic empowerment, it won’t eliminate structural inequalities.

Instead, we must focus on strengthening labour protections, empowering workers to organize and advocate for their rights, and promoting policies that prioritize the well-being and dignity of all workers. This includes raising the minimum wage, expanding access to affordable healthcare and childcare, and implementing progressive tax policies to ensure a more equitable distribution of wealth.

Instead of perpetuating the myth of universal entrepreneurship, we must confront the structural inequities and systemic injustices that underpin our current economy.

By prioritizing the well-being and dignity of all workers, we can build a more just and equitable society for future generations. It’s time to move beyond rhetoric and take meaningful action to create a brighter future for workers everywhere.

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By Kim Siever

Kim Siever is an independent queer journalist based in Lethbridge, Alberta, and writes daily news articles, focusing on politics and labour.

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