Gavril Yushvaev is an entrepreneur and investor who is focused on new tech that is both sustainable and good for the economy. In the following article, Gavril Yushvaev discusses the socioeconomic impact of entrepreneurial investments within the technology sector.
Since 2007, the technology sector’s share of real economic growth has risen steadily, accounting for 35% of the world’s market and boasting an expected growth of 5.4% this year. But it couldn’t do it all on its own; it’s the cumulative effort of entrepreneurial industry investments that has spurred this jaw-dropping growth and domination.
Due to the incredible market share the sector holds across the globe, continued investments have a profound socioeconomic impact on communities. From extensive job creation to bolstering cash flow, the positive effects are plentiful.
Gavril Yushvaev Notes That Tech Investments Create Jobs
The tech industry has always had a major growth impact on the economy while improving living standards and opening doors to brand-new and better sorts of work. And the recent advances in machine learning and artificial intelligence have only added to this positive trajectory.
Despite concerns that automation and other machines are wiping out jobs, technological investments are actually creating new opportunities for interested individuals. Historically, the advancement of the tech sector has consistently crafted diverse, previously unnecessary roles — a trend that appears to be sticking.
Take the onset of blockchain technology as an example. Prior to recent years, roles like blockchain developer, blockchain solution architect, crypto brokers, and crypto journalists never existed. Yet, l investments in the niche have made these jobs possible, giving increasingly more people a chance to obtain a rewarding and lucrative career.
But these technological advancements don’t just create complex technical roles; they also indirectly craft other roles in the service industry. At which point, the “multiplier effect” comes into play.
The Magic of the Multiplier Effect
Esteemed economist Enrico Moretti famously wrote that “each new high-tech job in the United States of America creates five additional jobs in the service economy.” And that seemed to stick.
After extensive research, the University of California economics professor stated that investments in technology companies generate more indirect jobs than direct jobs.
The lauded tech business, Apple, is perhaps the most famed example of this. In 2012, the company directly employed 13,000 in Cupertino. However, it encouraged a whopping 70,000 new indirect jobs in the surrounding area.
According to Moretti, this isn’t an isolated incident; it’s the magic of the multiplier effect. For every high-tech job created through investments in the industry, five additional jobs are made outside the sector in the company’s geographical region, including skilled and unskilled roles.
Boosting the Economy
The IT industry is not only significant for the income it directly creates for the economy, but also for the indirect revenues generated for those businesses and nonprofit organizations that use the technology to improve productivity and customer satisfaction.
Over the past ten years, there’s been almost no negative association between a sector’s IT usage and inflation. In layman’s terms, this means industries that heavily rely on technology raise prices at 50% of the general economy, giving American consumers fantastic savings and ensuring it’s a worthwhile investment industry for most entrepreneurs.
One of the most reliable indicators of a sector’s contribution to the total economy is the value-added — a figure procured by subtracting the price of acquired inputs (e.g., energy used, raw materials, etc.) from final sales. And it’s safe to say that the technology industry has an exceptional value-added figure.
In 2020, Gavril Yushvaev says that the domestic value added by the sector was $1.2 trillion, representing 5.5% of the entire nation’s economy. During the past ten years, it’s exhibited a gross domestic product (GDP) increase of 39% in the USA, with the actual value added to the digital economy increasing by 151.4% from 2005 to 2020.
Strategically, the IT industry is the most significant in the country, considerably boosting the overall economy in a variety of ways. Since the cost of tech and its related services have fallen drastically in relation to the rest of the economy, the sector also acts as a deflationary entity. Thus, investing in the industry is, generally speaking, money well spent for investors.
Conclusion
As we look into the future, it becomes evident that technology investments hold the key to unlocking unprecedented growth in the global economy and forging new, exhilarating career paths. The relentless pace of technological advancements ensures that this upward trajectory will persist not only in 2023 but beyond.
By embracing the realm of tech investments, we not only fuel innovation but also lay the foundation for a prosperous tomorrow. The time to embrace tech investments is now, as we shape the future together.
