According to new research from Clarify Capital(opens in a new tab), nearly two-thirds (63%) of recently laid off tech workers started their own businesses amid reemployment difficulties, despite some reports from late last l 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 nearly three-quarters (72%) of those who started a business did so within 12 months.
Although they often compete with their previous companies, the benefits are many, including increased pay and security.
Start your own tech business
Surprisingly, difficulty getting hired ranked 11th among the reasons laid-off workers start their own businesses, with career growth and increased opportunities playing a bigger role. Economically, the possibility of earning more and the dissatisfaction with the previous salary occupy the second and ninth place, respectively.
Although 91% said their start-up was competing with their former employer, it turned out that 68% of them had acquired customers in eight months.
Although the numbers look promising, there are some challenges that come with firing and running a successful business. Choosing the right technology is the biggest concern, though the ongoing effects of the pandemic remain almost as pressing.
Similarly, for many, finances were a concern, with friends and family being a common source. Colleagues were often consulted, as were angel investors. Fewer startups have turned to crowdfunding platforms like Kickstarter and Indiegogo.
Summarizes The Clarify Capital: “Pursuing an entrepreneurial lifestyle can seem quite rewarding, but achieving success is not always easy…However, many have been successful in their first year in business…most also felt thrills positive when starting your new business”.