I watched a video yesterday by a freelance photographer. She was crying, saying how tough things were in her business. Something was going wrong—clients weren’t paying, new clients weren’t signing up for shoots, and it was a long video filled with self-pity.
Then I saw a guy I once knew, a younger entrepreneur running his own marketing/branding consultancy, complaining about how difficult entrepreneurship is.
That got me thinking because both of them blamed the economy.
By the way, I’ve also spoken to several small business owners in person who’ve told me how bad things really are and how they’ve had to change their business models just to survive. One guy I met said his removals business had slowed down so much that he’s now getting involved in garden refuse collection to keep afloat.
So why are things this bad?
I thought about it. People in this country tend to blame the economy—and yes, they’re right. There’s never really been an economic plan in this country for the past 30 years, which is hugely damaging. Mismanagement and infrastructure collapse have made things worse.
But if you’re in small business or entrepreneurship, you’ll realize there are a few other factors at play.
The Impact of Technology
Technology has fundamentally changed jobs. Positions that existed 30 years ago simply aren’t needed anymore. For example, and this is a simple one, typists are almost obsolete—everyone types their own work. Secretaries? Most people handle their own administration. Only top executives have personal assistants these days.
And technology isn’t just eliminating jobs; it’s impacting middle-class professions. A lot of young people went into marketing, advertising, branding, and computer work. They got degrees, worked at a big corporate for a while, then decided to strike out on their own. The problem? Artificial intelligence has arrived, allowing many businesses to handle branding, copywriting, and design themselves.
So now we have too many people facing too few opportunities in this economy.
The Shift from Corporate to Consumer Markets
There was a time when the corporate sector was large and relied on freelancers, smaller suppliers, and agencies. But although corporates are still big in size, their use of external services has shrunk.
Many functions that used to be outsourced are now handled in-house. Public relations and corporate communications, for example, used to be the domain of specialist agencies. Now, with desktop publishing, design software, and AI, companies have built their own internal teams.
Are these in-house teams as good as the agencies of the past? Not at all. They often lack flair and real expertise. But whether we like it or not, companies have found that doing things internally cuts costs.
On the consumer side, things aren’t much better.
Consumers are struggling. Speak to anyone, and they’ll talk about rising prices, cutting back on expenses, delaying home projects—just trying to survive. The cost of living has skyrocketed, with rates, taxes, electricity, and petrol prices rising far beyond what’s reasonable, thanks to the ineptitude of the ruling regime.
Electricity costs, for example, used to be an afterthought. Now they’re a major household expense.
People are spending less, which means small businesses and entrepreneurs are facing shrinking demand—regardless of what industry they’re in.
Of course, there are always those living off trust funds, inheritance, or windfall money. These are the ones who sniff if you mention getting a better deal elsewhere. They don’t understand financial struggles, and they don’t want to hear about them.
But for the rest of us? The reality is grim.
The Lack of Competitive Advantage
Another major reason small businesses and entrepreneurs are struggling is that many have little or no competitive advantage. I’ve spoken about this before, but it’s worth repeating: If you don’t have a competitive edge, your business is going to suffer.
Let’s be clear—there’s a difference between an entrepreneur and a freelancer.
An entrepreneur has a vision and creates multiple businesses. Think of someone who starts a franchise—like the fried chicken outlet owner I spoke to recently. The person who built that business didn’t just start a shop; they had a vision for expansion.
Now, compare that to the photographer or branding consultant I mentioned earlier. The problem for them is that there are just too many photographers and consultants out there. Unless they’re exceptionally good at what they do, they’re going to struggle.
Clients can easily shop around for a lower price.
Photographers and branding consultants used to have stable corporate jobs, but when they went out on their own, their new “boss” became their clients. And those clients—regular people and businesses—are now cutting back on spending.
The middle-class, cushy jobs of the past? They’re turning into difficult, unpredictable professions as the economy shrinks.
Will Things Get Better?
Over the past 15 years, I’ve been predicting exactly where we are now. And based on my economic background, I’ll make another prediction:
Things aren’t going to get better.
Sure, there might be occasional upticks, but there won’t be a real recovery. It’s too late for that. The downward spiral will continue.
You’ll see government officials and so-called economists throwing around numbers like 1.8% growth, but if you believe that, you might as well believe in the tooth fairy, Santa Claus, and Snow White.
If a country has no economic plan, no strategy, and is just focused on taking and stealing, then things can only get worse.
And we all know exactly which groups in this country are being squeezed the hardest by this economic collapse.
But are their solutions? Of course—I’ve written about many of them before on my website. From time to time, I’ll continue covering solutions that involve entrepreneurs, freelancers, and small businesses. But these solutions, while simple once you understand them, are complex and require explanation.
Today’s article isn’t about solutions, though. It’s about just how bad things have gotten in this economy—how small businesses and entrepreneurs are struggling, even desperate.
