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If you've ever thought about quitting your job and starting something new, a survey from Clarity Capital about tech workers laid off during the pandemic found that might be a great idea, according to a report by Emily Dreibelbis of PCMag.com.
Of 4,188 respondents, a staggering 1,007 reported starting their own company post-layoff.
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The top motivations for doing so were more professional growth (58%) and more money (52%), although not being paid enough ranked lower (35%). Perhaps they were being paid enough, but they knew they could make more while gaining new skills.
Here's why.Credit: Clarify Capital SurveyThey were right. Self-employment has yielded handsome pay bumps: Founders are now making $13,000 more on average. And millennials are raking in an additional $17,535.
Here's how much more they make.Credit: Clarify Capital SurveyStill, 70% of those surveyed went through a period of remorse related to the decision. Gen Z respondents, some of whom may have left their first jobs ever to start their own companies, reported the most turmoil over their new daily grind, at 79%. They also experienced the smallest pay increase—$6,638, on average.
What lessons can we learn from all this? Data behind why former tech workers began their startups and the challenges they encountered are quite revealing.
Most respondents made the decision within a year of being laid off (72%). The ideas they chose to pursue were most often closely related to their former companies, with 91% saying they're competing directly.
Here's how long it took.Credit: Clarify Capital SurveyMost got started the old-fashioned way, by using their own money—$20,000 on average—and 70% secured investments from friends and family, mostly around $8,000. For an extra "stick it to the man" moment, 84% of new founders tapped connections from their former companies for funding.
Funding sources and challenges.Credit: Clarify Capital SurveyAcquiring customers took varying amounts of time, but most of these new businesses found it took eight months or less (68%). A fortunate subset found buyers within three months (18%).
In the end, most of these new company founders are happy with their decision. Respondents reported feeling surprised, excited, confident, and optimistic about their new venture. The majority reported having better mental health, more job security, and better work-life balance.
Feelings.Credit: Clarify Capital SurveySurvey Methodology (learn more):
4,188 former tech employees surveyed
1,007 indicated having launched their own companies afterward
52% men and 48% women
25% Gen Z, 36% millennials, 25% Gen X, and 14% baby boomers
For short, open-ended questions, outliers were removed.
The margin of error was plus or minus 3%, with a 95% confidence interval.
This article originally appeared on PCMag.com, Mashable's sibling site. PCMag.comis a leading authority on technology, delivering Labs-based, independent reviews of the latest products and services.
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