Laid-Off Employees Start Businesses More Quickly in 2005

May 15, 2006 ( - Last year laid-off employees took less time to buy or start businesses than in 2004, with more than half taking 3 months to do so, a recent survey found.

According to a survey by consultant group, Right Management, 53% of laid-off employees who bought or started businesses in the last year did so in three months, and 80% had them running with in six months, compared to 34% and 66%, respectively in 2004.

Of those starting consulting practices last year, 43% had them up and running within three months, and 71% in six months, according to a press release on the survey. In 2004, a quarter of laid-off employees started businesses in three months, and about 54% in six months, according to the news release.

The survey found that the time it took employees that were laid off to find jobs varied little from 2004 to 2005:

  • Lower-to-mid-level managers: 72% landed new jobs within three months and 92% within six months.
  • Senior-level executives, such as department heads and senior vice presidents: 45% landed new jobs within six months, and 72% within 12 months.
  • Key executives, including executive vice presidents up through chief executive officers: 45% landed new jobs within six months, 72% landed within 12 months, and 88% within 24 months.

“When the economy is slow or in recession, more people finally decide to start their own businesses only after exhausting all other options, since available jobs are tougher to get,” said Eileen Javers, Global Leader, Center of Excellence Transition for Right Management. in athe news release. “In an expanding job market, such as in 2005 and 2004, more people who choose to become entrepreneurs really want to have their own businesses, and they start these more quickly.”

The consulting company surveyed more than 8,100 laid-off employees in North America, who found jobs through Right Management in 2005, and in 2004, the survey included 8,700 employees.