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A rise in entrepreneurship awaiting recovery?

July 23, 2009

With a large number of people getting affected due to the recession in the world through layoff of self or someone close them might have other socio-economic implication in the waiting. The drop in GDP of many effected countries and the social and psychological unrest are the more immediate implications of the recession.

Somewhere I read recently that 2/3rd of the working population in UK was affected by recessionary layoff of either self or someone known to them. Such large and high impact layoff not only make people lose trust in the organisations but also towards all corporations. People incresingly have a far more pronounced desire to break out of the corporation and be on their own due to layoffs than in normal times.

As economy improves, which we all hope and pray it does, two phenamenon likely to come out pronounced would be a) increased amount of attrition without necessarily new jobs coming up. People would move across companies in their bid to break free of the pressures they have been exposed to in the recent past. People would hope to start afresh.

b) increased amount of entrepreneurship due to a desire to break free from the shackles of a corporation, of being left at the mercy of someone else in the meeting room that you cant attend. The best employees in the companies would hate to feel under pressure of such ambiguities and might be the first ones to get out.

We await to see what really transpires.  If the economy recovers soon and at a reasonably steep slope, there are going be tough times for companies who have been in the thick of layoffs. Its possible that in some cases even tougher than the times of recession.

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