The Great Resignation might be a nightmare for employers, but for employees, it’s the sign of a new era dawning – an era of entrepreneurship. Data trends indicate that now more than ever, individuals seek to control their financial and entrepreneurial futures by owning and operating their own small businesses.
Self-employment is becoming the optimal choice for those who aren’t satisfied with their benefits, their time off, job stability, or how they’re being valued as employees. The U.S. Census Bureau reports that more than 500,000 new business applications have been filed since July 2020. Entrepreneurs are also taking advantage of the faster-paced nature of modern entrepreneurship. There’s no such thing as a three-year business plan anymore, said Calendar co-founder and Forbes author John Hall, as the present environment is changing every day. Adaptation and ingenuity are the new name of the game, and entrepreneurs are taking full advantage of the post-pandemic uncertainty.
Another reason that entrepreneurship is on the rise is because of social responsibility. Recent reports from McKinsey show that consumers and employees are demanding more ethical production from the companies they choose. If they aren’t satisfied with a brand’s environmental activism or diversity, Hall said, they’ll start their own initiatives. Health and wellness are some of the most popular industries for founders looking to start new ventures, added Hall. They don’t even have to quit their day jobs to create brands that they’d do business with themselves - many see entrepreneurship as a side hustle and want to try a more risk-averse way to fulfill their dreams. Technology makes this easy, and vendor platforms can allow someone with little experience to create an app all their own.
While the masses flocking to entrepreneurship might be a good thing, it’s a dual-edged sword, and though the entrepreneurs are thriving, other businesses may be struggling. Many employers may begin to feel the loss if too many employees quit to start up their own ventures. To keep employees, they may have to ensure that they’re feeling valued and have a place where their ideas and suggestions are accepted. While workers may be expecting higher wages than pre-pandemic levels according to a recent Wilson Towers Watson survey, the alternative to increasing wages could be having increased competition if they leave your business to start up one of their own.