According to a report by Emily Dreibelbis of PCMag.com, a survey of tech workers who were laid off during the Pandemic found that quitting their job might be a good idea.
1,007 people said they started their own company after being laid off.
More professional growth and more money were the main reasons for doing so. They knew they could make more money if they continued to improve their skills.
Here's why. Credit: Clarify Capital Survey
The people were correct. The average pay hike for self-employed people is $13,000 a year. An additional $17,535 has been added to the income of the young people.
Here's how much more they make. Credit: Clarify Capital Survey
70% of people went through a period of remorse after the decision. Some of the Gen Z respondents who may have left their first jobs to start their own companies reported the most turmoil at 79%. On average, they had the smallest pay increase.
Lessons can be learned from this. There is a lot of data behind why former tech workers started their businesses.
The majority of respondents decided within a year of being laid off. Their former companies were the most likely to be related to the ideas they pursued.
Here's how long it took. Credit: Clarify Capital Survey
The majority of them got started by using their own money and securing investments from friends and family. In order to get an extra "stick it to the man" moment, almost all of the new founders tapped their former companies for funding.
Funding sources and challenges. Credit: Clarify Capital Survey
Most of the new businesses found it took less than eight months to acquire a customer. The lucky group found buyers within three months.
Most of the new company owners are happy with their decision. The respondents said they were surprised, excited, confident, and optimistic. Most people said they had better mental health, more job security, and better work-life balance.
Feelings. Credit: Clarify Capital Survey
4,188 tech workers were surveyed.
They launched their own companies afterwards.
Men and women make up half of the population.
18% baby boomers, 18% Gen Z, 18% Gen Y, and 18% Gen X.
Excluding outliers was done for short-ended questions.
The margin of error was close to zero.
The article was originally published on PCMag.com. Independent reviews of the latest products and services are delivered by PCMag.com.
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