Perhaps seizing on a tax bill favorable to business, as well as a stable economy and tight labor market, job seekers chose to start new businesses in the first quarter of the year at the highest rate since the fourth quarter of 2013, according to a report from global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc.
By Rick Cobb
Every month we publish the Challenger Layoff report. Most writers and producers of business information are familiar with our releases, and come to us regularly for comment on issues of employment. Invariably we’re asked the question: “Where are the jobs…who’s hiring?” We respond with the “hot” sectors and geographies, but we seldom get to address a core issue.
5.5% OF JOB SEEKERS STARTED A BUSINESS IN FIRST HALF OF 2014
An improving economy should lower the barriers to starting a business. However, it also means that more companies are hiring. Faced with the choice between entrepreneurship and traditional employment, a new survey indicates that less than 6.0 percent of out-of-work managers and executives were willing to give self-employment a shot in the first half of 2014.
Original article: http://money.cnn.com/2014/04/01/smallbusiness/entrepreneurs.moneymag/
"Last year 5.5% of jobless managers and executives launched a business, up 31% from 2012 and the highest level since 2009, says outplacement firm Challenger Gray & Christmas.
Confidence in the economy and access to individual health insurance via Obamacare help fuel the trend, says CEO John Challenger."
The percentage of former managers and executives starting their own business rose in 2013 to its highest level since the end of the recession, according to a new survey. The increase in entrepreneurial activity among displaced professionals belies recent trends in the wider labor force where the number of self-employed Americans declined last year.
The percentage of job seekers starting their own businesses increased by 33 percent in the first half of 2013, as an improving lending market and employment picture provided both the financial and job safety nets sought by fledgling entrepreneurs. Even with the increase, however, less than five percent of managers and executives opted for self-employment over a more traditional career path, suggesting that starting a business remains far too risky for most people.
Download the full report.