Entrepreneurs, beware: Owning your own business can make it harder to get hired later

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If you've been thinking about starting your own business lately, you're not alone. Americans began launching ventures in record numbers during the pandemic, with an above-trend pace continuing through 2023.

that easily, as well as seven former entrepreneurs who successfully made the transition back into the workforce.owners were actually less likely to get interviews compared with applicants with only traditional experience. This was true regardless of whether they had sold or closed their businesses. And the longer they were out of the traditional workforce, the worse their chances of success were.

A related fear: A worker who leaves to start a new venture might be tempted to poach talent, clients and tactics from their old employer. They also raised issues of job fit, questioning whether ex-entrepreneurs' knowledge and abilities would translate to traditional work."The concern would be the skills they have developed don't transfer," said one of our interviewees. In addition, for entrepreneurs who have worked alone, it can be difficult for recruiters to know how well they'll perform with others.

Our study found that former entrepreneurs face less bias when they apply to roles that seem entrepreneurish—in other words, that are in line with stereotypes about business owners. So, for example, they're more likely to land interviews when applying for positions with a lot of autonomy, such as in new business development, rather than those that require following lots of rules, such as in legal compliance.

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