Entrepreneurship as a Safety Net
Is entrepreneurship the new safety net? In a viewpoint column this week, Chris Farrell suggests that corporate careers have become more uncertain than ever, and young people are looking to microenterprises for stability.
Corporate loyalty used to work both ways, with loyal employees being rewarded with long-term job security. That model began to fall apart with mass layoffs in the 1970s, Farrell notes. Now that pay cuts and furloughs — once shunned even by corporations laying off workers — have become commonplace, he suggests, workers see less value and stability in corporate careers. Along with bolstering savings, workers are looking to microbusinesses as a hedge against the risk of layoffs or pay cuts: