Why are side jobs more advantageous than independence to make a small business last longer?

ByAnon 617

If you are thinking that you want to run your business by hiring someone else, you do not start a business suddenly but quit a business, starting a business that starts a business while continuing a job The statistical result that it will last longer appears.

Do not Quit Your Day Job: Using Wage and Salary Earnings to Support a New Business
(PDF file)http://www.frbatlanta.org/documents/news/conferences/13rdc/s2_p1_new_firms_Perez.pdf


Professor Monica Garcia Perez of St. Cloud State University and its research team used data from the US census for ten years from 2002 to compare "wages and salary income" of employees, employers and individual business owners We investigated the correlation with "change of work such as career change and entrepreneurship".

What I immediately found from data analysis is that people with high salary income, that is, groups of people with high incomes tend to have less chances to change jobs or change jobs, even if they are employed by someone. Conversely, salary income It was a correlation between the high salary and the low turnover rate that a group of people with a low level was often to change jobs or start up oneself.

ByDavid Kracht

Those who receive a lot of salary are satisfied with the current environment, so they are unlikely to change their jobs or start up their business until they take risks. Conversely, those with little salary change jobs for better conditions It is a very reasonable and not particularly strange result that the tendency to start a business is strong, but Perez's research group focused on the latter group and examined the style of the work in more detail , Among those who newly started business, they found that those who failed and ended the business, and those that largely divide people who could last long, are "salary income or not" Thing.

ByRoger G

"Success in entrepreneurship" tends to image small business such as Microsoft's Bill · Gates and Facebook Mark · ザ ッ カ ー バ ー グ to be a large company, but in any size, regardless of size, It is no doubt that it can be said that "Success in entrepreneurship" can be continued for a long time without breaking down economically by making full use of its capabilities. Such a small scale, so-calledSmall BusinessIn some cases it may be done as a special occasion, some may be done as a side job while hired by a company, but as a result of Professor Perez analyzing statistical data, starting a business with salary income I learned that in terms of statistics the business can be continued for a much longer period than when I quit my previous job and start a business as a professional.

ByJon Tan

In particular, the more recent salary income, the higher the percentage of surviving small business, and it is obvious that it is more advantageous to conduct small business as income is higher to some extent, but if salary income exceeds that It is quite interesting to say that the proportion of changing jobs will decrease until you go to small business if you are high.

Professor Perez said that starting a small business with salary income is more likely to continue business for a longer time than to start with specialized work, one is to devote a stable salary income to various expenditures necessary for starting a new business I point out the point. At start-up, there are many unexpected expenses including small expenditures, and funds tend to be short-circuited, for example, salary income at which the amount is at least regularly and steadily obtained fulfills the role of safety net and goes bankrupt It is safe from the crisis.

ByBashar Al-Ba'noon

Another factor is "assets other than salary" that can be earned from jobs that earn salaries. For example, there is the possibility that the knowledge and experience gained by continuing a specific job can greatly contribute to the small business starting newly, and the connection with people gained in the current job is a human resource as the success of small business In many cases it is important. Especially since personal connections may play a decisively important role in starting a new business, it is thought that continuing work even if the salary is cheap can have a direct influence on the success or failure of the side job .