The Great Resignation And Small Business Boom

Resignation Concept The man in light blue shirt standing at the desk and putting the calculator and other stuff into the box.
Categorized as Business Strategy Tagged , ,

One of the most surprising side effects of the COVID pandemic has been the phenomenon known as the Great Resignation. Today there are over 11 million job openings in the country but only 7.4 million people draw unemployment benefits. Interestingly, another phenomenon has sprung up, a boom in small business filings. After an initial lockdown of all but essential services, the economy is experiencing a remarkable recovery. But, ironically, that quick return of job opportunities and positive economic growth may significantly influence the shortage of workers. 

A New Way of Viewing Work

Undoubtedly, some people have not returned to work because they feel unsafe from COVID-19, object to workplace vaccination and masking mandates, or, during the lockdown, they simply decided their job didn’t satisfy them and wanted to try something else. Of the people who did return, many resigned due to the increased responsibility and workload caused by staffing shortages, The pandemic sent millions of workers home where they had an opportunity to think through how their work affected their and their family’s life. Toss in a flood of new collaborating technology, the spread of remote working, and the separation of geography as a job requirement, workers discovered they had more work opportunities than they realized. Social media was full of stories about working from home. Local news broadcasts were happening in basement studios with frequent interruptions from pets and kids. Attending a Zoom conference in shirt and tie and pajama bottoms were funny at first, but it became a norm. The pandemic employment experience was a glimpse at a brave new world for many workers.

“Find Something You Like and Call It Work”

 It seems that many employees are ready to be their own bosses. The Department of Labor reports 500,000 new self-employed, unincorporated workers since the pandemic began.  Starting a business is fraught with challenges, but the pandemic and digital world have made it easier in many ways. Employers suffering from staff shortages are turning to freelancers and contractors at rates not seen before. The growth of digital marketing platforms like Amazon and Spotify, coupled with the effectiveness of social media advertising, has created access to enormous markets previously not available to new startups. Today’s opportunities and markets have created an almost irresistible environment for people inclined to go into business for themselves.  A statistic that demonstrates just how prevalent this small business boom is from the IRS reporting over 4.5 million requests for new business tax identification numbers in 2021. At the end of the day, we may discover the Great Resignation was less about dissatisfaction with an employer and more about pursuing personal dreams and goals. The impositions caused by the pandemic may have been the catalyst that created the Great Entrepreneurial Experience.

Ready To Launch Your Own Business?

Starting your own business is not for everyone, and half of the small businesses fail within the first five years of -operation. But, the time is ripe for those with a passion for creating their enterprise. If you are in Southern California and you are ready to pursue your dream, contact us at ASCEND Business Advisory. We can show you how to turn your passion into a sustainable, viable business and provide you with the support you will need to grow effectively. Contact us for a complimentary consulting meeting today at 888 297-3321.