The public’s interest in entrepreneurial ventures has never been greater. As of 2015, 27 million working-age Americans (close to 14% of the population) ran their own businesses. And according to the 2015 Kauffman Index, more than 6.3 million new businesses were started last year.
People start new businesses for many reasons.
Some are truly self-motivated and feel called to become their own boss. They want to create an enterprise. Others become entrepreneurs out of necessity, say, because of an impending layoff or because they are unhappy with their job. Whatever the reason, a question many soon-to-be and new entrepreneurs face is whether they should start their new business while keeping a full-time or part-time job. Or should they become self-employed full-time, relying on the new business entirely for their livelihood?
For most people, starting a new business is risky and financially stressful.
Would-be entrepreneurs face the real possibility that their fledgling business will fail within the first year. And even if it succeeds, it is usually difficult to take out money and pay oneself in its early stages. Working a day job helps to reduce these risks. And in fact, studies indicate that over half of all new entrepreneurs start a business while working a full-time job.