Lots of laid-off tech workers are starting their own businesses
According to a new Clarify Capital (opens in new tab) study, almost two-thirds (63%) of recently laid-off tech workers have started their own companies amid re-employment difficulties, despite some reports late last year suggesting that tech workers were in high demand.
The research involved 1,000 participating tech workers who had been laid off during the pandemic and found that almost three-quarters (72%) of those who set up a business had done so within 12 months.
Despite oftentimes competing against their old companies, benefits are aplenty, including increased salary and security.
Starting your own tech company
Surprisingly, the difficulty in getting hired ranked 11th as a reason for redundant workers setting up their own company, with professional growth and greater opportunities both playing a more significant role. Financially, the opportunity to earn more and the dissatisfaction with previous pay ranked second and ninth respectively.
Despite 91% saying that their newly-formed company competed with their previous employer, it transpired that 68% of them had acquired customers within eight months.
While the figures sound promising, there are some challenges that come with being made redundant and running a successful company. Choosing the right technology is the biggest concern, though the ongoing effects of the pandemic remain almost as pressing.
Similarly concerning for many was funding, with friends and family being a common source. Coworkers were often consulted, as were angel investors. Fewer startups turned to crowdfunding platforms like Kickstarter and Indiegogo.
The Clarify Capital summarizes: “Pursuing an entrepreneurial lifestyle can feel quite fulfilling, but finding success isn’t always easy… Nonetheless, many found success within their first year of business… [and] the majority also felt positive emotions when starting their new businesses”.
Audio player loading… According to a new Clarify Capital (opens in new tab) study, almost two-thirds (63%) of recently laid-off tech workers have started their own companies amid re-employment difficulties, despite some reports late last year suggesting that tech workers were in high demand. The research involved 1,000 participating tech…
Recent Posts
- A dangerous new malware is targeting Macs of all kinds — here’s how to stay safe
- Google Pixel 9 case leak shows we may get three models
- The Morning After: The verdict on the Rabbit R1
- The Morning After: The verdict on the Rabbit R1
- Russian hackers target EU countries using a simple Microsoft Outlook security flaw
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011