When the words shutting down, laid-off, or simply downsized are spoken it appears the end of stable employment and in extension the comfort of your life. Many within the corporate job market hear these words daily. Lured into corporate world because it is viewed as luxurious due to the potential of one day earning a six-figure salary, there are some high-risked costs that one may not expect. Business closures are expected but layoffs, or Downsizing as it is currently known as, are some of the risks when trying to break into the corporate world.
According to ExecuNet, a group for laid-off or downsized Executives within the $100K salary bracket, the life of a corporate executive should always be trying to find the next job since their expectancy within one corporation for an estimated total of 3.3 years. What is intriguing by this fact is, a corporate job (although, still appealing for its benefits) can cause a great deal of stress on family and finances since mid-level, even executive-level, managers are looking for new companies to work for every couple of years. It’s a constant cycle trying to find employment at the next big company that you could reap these alluring benefits.
Since the recession hit, this cycle has come to a near pause for many within the corporate field trying to find another job after the closing down of a business or the dreaded downsizing in order to keep a company afloat. Unable to bear the grunt of unemployment and constant ‘hitting the pavement’ to find another spot at a new company, many formerly ousted corporate-bred workers are finding a new source of employment and income by opening their own business.
Stacy Swift, owner of a franchise consulting firm called FranNet known for working with downsized corporate executives, states that she has seen many corporate employees who “come from demanding, high-stress careers. They suddenly find themselves out of work and not sure what to do. Sometimes it takes something like a layoff for them to move in a different direction.” And the direction best suited for many laid-off corporate employees seems to be starting their own business due to skills they possess that has made them suitable for corporate positions in the first place.
Since corporate-bred employees tend to know what it takes to run a business, taking calculated risks, possess leadership skills, and are interested in growing a business but not prone to actually running one they can survive within business ownership. The only difference they must make is changing their objective from wanting to help a business grow to starting and growing their own business.
According to a study entitled Doing Business 2011 by World Bank (a United Nations agency created international bank for reconstructing economies in need) governments are responding to the financial crisis by making the process of developing a business easier for future entrepreneurs in order to develop employment growth. Neil Gregory, one of the authors of the study and director of Indicators and Analysis at the World Bank, acknowledges that “it’s been a strong year of reform around the world. Over all, we’re seeing a move toward making regulation more efficient.”
One of the trends governments have taken on to promote new businesses is by embracing the Internet. Through the use of internet, it has greatly reduce paperwork and resulted in the development process much easier for start-ups. Gregory acknowledges that these changes helped small-business creation which resulted in employment growth because, “making changes in these areas really does make a difference.”
According to the study, the number of unemployed worldwide is reaching 212 million since last year which is 34 million more than at the beginning of the financial crisis that began in 2007. The only way a country can combat the financial troubles at home would involve the government making the process of job creation easier since “the job creation potential of small private enterprises,” could give a struggling economy a necessary boost. The United States of America comes in six behind Britain, New Zealand, Hong Kong, and Singapore which is leading in the development of small businesses.
