Former Entrepreneurs Face Challenges When Reentering the Workforce

A study reveals that former business owners struggle to secure interviews and job offers compared to applicants with traditional work experience.

Introduction: Starting a business is a dream for many individuals, but the reality is that entrepreneurship comes with its fair share of risks and challenges. While some entrepreneurs succeed, many others find themselves facing failure and contemplating rejoining the traditional workforce. However, a recent study conducted by management professors sheds light on the difficulties faced by former entrepreneurs when trying to reenter the job market. The research reveals that these individuals are less likely to secure interviews and job offers compared to candidates with only traditional work experience. This article delves into the reasons behind this phenomenon and offers insights for both employers and former entrepreneurs. Screened out: The study surveyed over 700 hiring professionals and interviewed seven former entrepreneurs who successfully transitioned back into the workforce. The findings indicate that recruiters are hesitant to consider former business owners for interviews, regardless of whether they sold or closed their businesses. One of the key concerns expressed by recruiters is the fear that entrepreneurs will leave to start their own ventures as soon as they can. This poses a problem for employers who invest time and resources into the hiring process, as it may not yield a long-term commitment from the candidate. Recruiters also worry about the potential for former entrepreneurs to poach talent, clients, and strategies from their previous employers. Adapting to a new role: Recruiters also expressed concerns about former entrepreneurs' ability to adapt to a lower position in the organizational hierarchy. Spending time as their own bosses may make it difficult for them to take directions and work collaboratively with others. Additionally, recruiters questioned whether the skills and knowledge acquired by ex-entrepreneurs would translate effectively to traditional work environments. The lack of experience working with others and the potential for a mismatch in job fit further contribute to recruiters' hesitancy in considering former entrepreneurs for interviews. Overcoming biases and improving chances: The study suggests that biases against ex-entrepreneurs exist among recruiters, albeit often unintentionally. Acknowledging these biases is the first step in minimizing their influence. Furthermore, organizations with more diverse hiring teams and a deeper understanding of entrepreneurial experience are likely to see less bias against former business owners. Recruiters who have prior entrepreneurial experience themselves, as well as women and recently hired recruiters, were found to be less likely to screen out former entrepreneurs. For former entrepreneurs seeking to reenter the workforce, it is crucial to highlight the aspects of their work history that align with the desired job role. Positions that allow for autonomy and innovation are more likely to be receptive to ex-entrepreneurs. Emphasizing valuable characteristics such as passion and creativity, which contribute to innovation, can increase their chances of securing interviews and job offers. Conclusion: The challenges faced by former entrepreneurs when reentering the workforce are evident. Recruiters' concerns about commitment, adaptability, and job fit contribute to the lower likelihood of securing interviews for ex-entrepreneurs. However, organizations can take steps to minimize biases and improve their applicant pool by diversifying their hiring teams and gaining a deeper understanding of entrepreneurial experience. Former entrepreneurs can enhance their chances by highlighting relevant skills and characteristics that align with the desired job roles. By recognizing the value that former business owners bring to the table, recruiters can tap into a pool of talented candidates who have the potential to contribute to their organizations' success.