The economy's been unusually hard on small businesses over the past year or so, and it seems like the squeeze just keeps getting tighter. Yet as individuals have lost their jobs, all sorts of new small businesses have sprung into being.
"Nearly a quarter of survey respondents (22%), stated that they started their business after being downsized," according to a new RingCentral report. There were about 200 respondents, so that finding covers almost 45 companies in one swipe.
RingCentral didn't get into geographic or market-related breakdowns, but Vlad Shmunis, the firm's CEO, said as a result, "This survey demonstrates that the workplace is changing, as many former employees become business owners . . ."
A separate question is how these new companies are doing, of course; the GDP may look a little better, but few people will benefit if they end up going out of business. And high-looking startup rates will become harder to celebrate if layoffs are the reason behind many of them.
Small businesses may come out ahead in the end, however, as entrepreneurs presumably aren't taking on independent challenges without some thought.
A Lesson About Layoffs From MicrosoftNational Entrepreneurship Week Rolls AroundConsortium Holds Entrepreneurship WeekGlobal Entrepreneurship Week ContinuesU.S. Ranks Third In EntrepreneurshipReport Says Small Biz Is Turning To LayoffsEntrepreneurship Scholarship Application Deadline Coming UpYahoo On Entrepreneurship and the EconomyNew Small Biz Employment Report Documents LayoffsSmall Business Optimism Drops More
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Comments
Small Business Boom
I concur that small business is booming! I work in the home business space and the volume of people searching for help is significant. Many of the people are those who were laid off and are looking for a way to be successful on their own.
If you can show people how to be successful while working from home in a home business you will do well.
John
www.TopMentorSecrets.com
The flip side
Unemployment
I keep hearing about high unemplyment rates and layoffs but there are still tens of thousands of high paying jobs posted on employment sites -
http://www.realmatch.com
http://www.indeed.com
http://www.craigslist.com
Seems strange to me.
i am an example for it
I got layed off in January and i started online business/website to earn money.
I started forum call "American Economy Forum" talk about how to bring American economy on top or better. American Economy Forum at http://americaneco.a1forums.net/
People can create their on free forum as i did at http://www.a1forums.net and earn some money.
They will help you if you not sure how to run forum and they will teach you how to earn money.
I earned it so you, i am sure you will too.
long run
i don't see many negatives coming from starting your own small business in this economy. in fact, i feel that these are the perfect conditions to start a business although you probably won't see much ROI for a while. Small business competition will leave many out in the cold and filing for bankruptcy before they can obtain office space, but as a whole this will benefit the economy in the long run.
neil - www.hirefinders.com
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