Despite all you’ve heard about the rise of the entrepreneur and the growing number of young job seekers striking out on their own rather than adhere to today’s workplace status quo, Challenger Gray & Christmas says not so fast.
The Chicago-based outplacement and career consultancy posted on its site recently a somewhat surprising report indicating job seekers today are actually risk-averse and are shunning entrepreneurship, even in this much-improved economy.
“Now that the economy is finally hitting its stride, one might expect a surge in start-ups,” says John A. Challenger, chief executive officer of the company. “While the percentage of unemployed managers and executives starting businesses has, in fact, increased, the survey results suggest that the severity of the recession [albeit over] had an adverse impact on would-be entrepreneurs, who appear to be far more sensitive to risk.”
Given the bulk of job seekers and newly-hired workers are younger — and given the results of a recent EY survey that Senior Editor Andrew McIlvaine posted about on May 7, finding millennials are getting fed up with the lack of flexibility in the current workforce — you’d think more of them would be setting out on their own.
Granted, the gradations in the Challenger report are fairly small, and it does indicate the numbers of entrepreneurs have, in fact, gone up since 2011:
“On average, just 5.1 percent of unemployed managers and executives started their own business in 2014, according to [the] quarterly survey of job seekers who found a position, pursued self-employment or retired.
“The 2014 start-up rate was down slightly from 2013, when it averaged 5.5 percent per quarter. However, both 2013 and 2014 rates were significantly better than the two previous years, when start-up activity averaged 4.2 percent in 2012 and 3.2 percent in 2011.”
But numbers are numbers, and 5.1 percent of unemployed Americans starting a business, in this economy, is surprising.
Especially considering all we’ve heard about the new age of self-employed self-starters … like this fairly recent account on the CNBC website. From the writer’s vantage point, there’s a whole lot of movement away from traditional employer-employee relationships. As the piece puts it:
“Watching the enormous success of companies like Facebook and Google — started by founders who were barely out of college — has dramatically altered the under-25’s sense of when it’s ‘right’ or ‘appropriate’ to pursue a good idea.”
It includes examples of some recent start-ups, some outside the United States, but not the numbers Challenger Gray & Christmas gives us.
Perhaps, as this HRE cover story from a year ago, “Leap of Faith,” suggests, maybe we’re not seeing as many entrepreneurs taking their dreams on the road because more employers are recognizing the power of innovation within their workforces and workplaces.
And maybe, for those millennials who want more flexibility but are staying put anyway, “intrapreneurship” is trumping work/life … at least for now.