A report from lending firm Clarify Capital found that 63% of technology professionals laid off during the Covid-19 pandemic have started their own companies, with 83% of these new ventures being in the technology industry. The report surveyed 1,000 laid-off tech workers and found that nearly one in four could not find another job. However, those who started their own company reported an average salary increase of $13,000 annually.
58% of the surveyed tech workers who started a company after a layoff reported feeling better about their job security. The top reasons cited for starting a company included professional growth, more money, creating something new, leading others, being their own boss, and difficulty in getting hired.
The report also found that for 40% of respondents, the idea to start a company came between 6 and 12 months after getting laid off. Nearly one-third had their “lightbulb moment” even sooner, and the rest took a year or more to decide that owning a business was the next logical step in their career. Additionally, 93% of surveyed workers reported that they were now competing with the company that had let them go. Overall, the report suggests that being laid off from a tech job can lead to a new wave of entrepreneurship, as many workers opt to create their own opportunities rather than wait for another job offer.