The Role of Online Businesses in Reducing Unemployment Rates: A Look at Digikala’s Annual Report
One of the main pathways that has significantly contributed to job creation, especially in the past two decades, is digital businesses. These digital enterprises have not only created new jobs but have also provided a platform through which other businesses can emerge or expand.
Statistics show that in 2024, the unemployment rate has reached its lowest level since 1978. This figure, which has been consistently declining since 2016 despite occasional fluctuations over the years, highlights the positive impact of digital businesses on the job market.
Growth of the Startup Ecosystem and Decrease in Unemployment Rate
The Relationship Between Unemployment Rates and the General Economic Situation
The unemployment rate does not have a direct correlation with the overall economic condition in various years. For instance, in 2001 and 2002, when economic conditions were relatively favorable, or in 2016, with decreasing inflation and improved economic growth, the unemployment rate showed an increase. Thus, it can be said that the continuous decline in the unemployment rate over the past eight years has been influenced more by external factors than by the performance of governments. One such factor is the growth of the startup ecosystem and technology-based businesses, which began in the late 2000s and early 2010s and has been yielding results since 2016.
For example, Digikala, one of the earliest and most prominent companies in this sector, reported in its annual report that it has created 1,298,899 jobs over its 17 years of operation. Of these, 12,260 people are currently directly employed by Digikala. Digikala also states that 1,256,181 jobs have been created by its marketplace vendors. This figure is derived from multiplying an average of three jobs per vendor by the 418,727 vendors active on Digikala, indicating that over 400,000 vendors use the platform as independent businesses.
High Return on Employment Creation by Digikala
Three key points stand out from the employment statistics of a business like Digikala. Firstly, the cost of creating this level of employment in 2024 was approximately 12.5 trillion Tomans. When this amount is divided by the number of jobs created, the cost per job is about 100 million Tomans. Compared to the costs of other types of employment—ranging from buying a vehicle for a driving job to setting up a physical store with expenses such as purchase, rent, and decor—the high return on investment in technology and online businesses is evident.
The initial image that comes to mind when people think of a “business” is often a store. The Iran Mall in Tehran, as the largest shopping center in the Middle East, has around 1,000 stores. Considering the number of vendors collaborating with Digikala, the marketplace creates a space equivalent to 418 Iran Malls for selling goods. These figures highlight how the return on investment in terms of employment creation in a marketplace like Digikala compares favorably with traditional commercial centers and physical stores.
Employment Creation by Digikala in Small Cities and Villages
A second noteworthy aspect of these statistics is that the job creation numbers do not specifically cover Tehran and major cities. The employment map of Iran shows that remote areas and underdeveloped provinces have the highest unemployment rates. In contrast, online platforms create environments where even in small towns, villages, and remote, underprivileged areas, opportunities for business formation and job creation through marketplaces and online platforms exist. Last year, 2,735 people joined the ranks of local and regional vendors collaborating with Digikala.
If each local and regional vendor creates jobs for just two people, this infrastructure has generated 5,470 jobs in local and regional areas. With the addition of these new vendors, there are now 9,500 local vendors selling their products through Digikala. Given that employment statistics from national employment maps show significantly lower employment rates for women compared to men in small towns, villages, and underdeveloped areas, the comparison between the number of female vendors (4,111) and male vendors (4,988) shows that such infrastructure not only improves geographical distribution of employment but also positively impacts gender equality in employment.
Corporate Entrepreneurship
The third notable aspect of these statistics is the significant number of job titles created. Technology and startup businesses have introduced new job titles to the Iranian labor market based on their needs, which in turn drives increased employment. For example, in 2024, Digikala reported having over a thousand job titles within its organization. This number can be expanded to include freelancers collaborating with businesses or partner companies and consultants.
Aside from the high return on employment generation by technology and startup businesses, the emergence of a new concept can further enhance the positive impact of these businesses on reducing unemployment: corporate entrepreneurship.
In recent years, the term “entrepreneurship“ has gained traction in the economic and business lexicon of Iran. Traditionally, an entrepreneur refers to the co-founders and initiators of a business. However, many pioneering and developing organizations are now embracing a new concept called corporate entrepreneurship to bolster their growth. Corporate entrepreneurship enables individuals within an organization to engage in entrepreneurial activities. Creating new products, launching new business lines, initiating projects, and establishing B2B frameworks by employees are all considered entrepreneurial actions, contributing further to increased employment within the organization.
These statistics demonstrate that online, technology, and startup businesses have successfully passed the test of entrepreneurship and reducing unemployment. Furthermore, they still possess significant potential for positively impacting employment.
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