Why only 25% people are successful in self-employment
According to the Kauffman Index of Entrepreneurial Activity in each month from 2002 through 2007, just fewer than 300 of every 100000 adults in the US started a business. People may prefer self employment for plenty of reasons. At the time of strong economy people may try self-employment because the opportunities seem plentiful and financing is easy to get whereas in harder times like these it can seem a tempting option for people who have just been laid off or are watching colleagues all around them are losing their jobs.
This is the eco-socio aspect behind the tendency to be self-employed not only in US but also around the world. There are many personal reasons too. One may like to say goodbye to his prefixed schedules set up by his company or the bosses; here the schedule is often of his own. If one person business succeeds owner takes all. There is no bureaucracy to slow response time. Brain Wilkerson , global practice director for talent management experienced both the pluses and minuses of self employment when he ran a consultancy business. Among the pluses, "If I have five service lines in a big consulting company and a client comes with a request, we go through a big process, if I'm on my own , I can respond right away ".
Preliminary results indicate that the rate of people going into business for themselves actually declined in 2008(Source W. Fairile, a professor of economics at the university of California,Santa Cruz.)
According to Ari Ginsberg , a professor of management and organization at the Stern School of Business at New York University fewer than half of all startups survive five years, and only 25 percent last 10 years.
What may be the reasons for such a poor performance or what is the chemistry behind the rest 25 percent of the self employed persons who survive for long time?"Self-employed people need to create a structure for themselves and a schedule" said Howard Siedel of Essex partners , an outplacement and career counseling firm specializing in senior executives. The infrastructure disappears in a one-man shop. So one has to be careful and effective in day to day office management system. Not everyone who comes for self-employment is a sales person but one has to be sales person when he starts his own business. The challenges are skill related and also attitude related. So one has to develop these qualities in oneself.
About the Author:Just few years back Jayanti was nothing more than a homemaker.To pass her time she started her local consultancy business.Later she converted her local business into a global one.Now she is a proud owner of a business house with more than 8000 clients.She described her experience step by step in her blog http://jayantisownstory.blogspot.com
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