What is “The New Career Economy?”
The statistics are familiar. Corporate downsizings are up, outsourcing has resulted in the loss of jobs, pension plans are largely a thing of the past, unemployment is rising, and predictions about the inadequacy of Social Security loom. These phenomena, along with the increase of globalization and debt all point to a new economic paradigm in the U.S. – a new economy – that calls for a shift in the way American workers plan for, and secure, their futures.
For many, this new realm can be paralyzing. Although the uncertainties of corporate life – working for someone else – have been evident for years, many feel inadequate and unprepared to cut their ties with employers, choosing instead to work long hours, hoping their efforts will result in long term security. However, recent figures indicate that today’s W-2 worker will make a job change within their chosen field 6-8 times during their career, often not by choice, and will change their actual career field 3 times during their lifetime.
Others, however, have chosen a path designed to insulate themselves from the uncertainties of working for others. Statistics show that as economic indicators plummet, the rise in business ownership increases.
How best then to manage one’s career in this uncertain “new economy?” Work for someone else, or “go it alone?” We are now in the “New Career Economy.”
The “New Career Economy,” a new economic reference based on a 2006 study commissioned by The Entrepreneur’s Source (TES), calls for careers based upon self-sufficiency, personal control and rewards more closely tied to one’s personal efforts. In order to minimize the risks associated with “going it alone,” and increasing the odds of success in a new venture, an increasing number of people are aligning themselves with established businesses, including franchising. According to Price Waterhouse Coopers, the U.S. has over 3000 franchise companies and has over 900,000 individual franchise units. Overall, the success rates of franchised businesses compare well to non-franchised startups.
Many find that working for themselves provides more satisfaction than being a “cog in the wheel” of a corporation. And the careful selection of a franchise type can better ensure that the quality of life of the business owner can be more closely aligned with their personal preferences regarding work hours, location, schedule flexibility, and industry.
Another way corporate refugees are stacking the odds in their favor is by using the services of a business coach. Business coaches can foster the confidence and leadership qualities needed to succeed on one’s own, provide an environment supportive to entrepreneurship, and minimize the uncertainties associated with transitioning to the New Career Economy model.
Overall, these approaches indicate that workers who abandon employment in favor of owning their own businesses have the insight to replicate the more positive aspects of large organizations by making choices which include a more group-based, or teamwork approach. By leveraging the knowledge and experience of others, they can minimize the risks of small business ownership and make more intelligent, information-driven choices when starting a new venture. The careful selection and “personalization” of this venture – the matching of the business to the business owner - increases the odds of success, and satisfaction, while decreasing reliance on others.
Technology
Technology has aided, and also perhaps fostered, this new information-driven approach to small business ownership. The increase of computer skills and access to the internet has accustomed consumers to having a plethora of choices, and lots of supporting information. Consequently, consumers are accustomed to doing research and leveraging existing information before making any selection, and this includes choice of venture. Conversely, it can be argued that once making a selection, it is easier for the business owner to receive support from franchisors, including marketing materials, operations and instructional materials, and other support materials, and to receive the support of coaches and other business-related specialists.
Conclusion
In brief, the New Career Economy is characterized by the following:
- Increased worker knowledge of overall economic factors which support increased individual efforts such as business ownership to ensure long-term security for themselves and their families;
- Increased entrepreneurial success leveraging the knowledge and experience of men and women leaving the corporate workplace.
- Business services sector increasing due to the need for individuals and companies aligning with business coaches;
- An increased desire for “personalization” of new businesses to the lifestyle , goals and needs of the business owner; and
- Increased diversity in the workplace characterized by the inclusion of women, minorities, veterans, the handicapped, and more older workers in the workplace.