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Owning your own business may make it difficult to get hired later

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If you have recently been considering starting your own business, you are not alone. During the pandemic, Americans began launching ventures in record numbers, at an above-trend pace continued until 2023.

Unfortunately, a lot of these firms won’t last longAccording to the Small Business Administration, 30% of latest businesses fail inside two years, and half don’t survive beyond five years. While a few of these unlucky founders will pursue latest ventures, many others will try to return to the normal job market.

You cannot blame them. People often see “back to work” as a security net for entrepreneurs taking risks. How management professors who study entrepreneurshipwe wanted to check if it was true.

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Overexposed

So we investigated over 700 recruitment specialists to determine whether founders can really discover a latest job so easily, in addition to seven former entrepreneurs who managed to return to the labor market.

We found that former business owners were actually less likely to take part in job interviews compared to candidates with only traditional experience. This happened no matter whether or not they sold or closed their businesses. The longer they were out of the normal workforce, the lower their possibilities of success.

Why are employers hesitant to give former business owners a likelihood?

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It starts on the earliest stages, with recruiters checking whether individuals are or will not be considering interviews. We found that recruiters were concerned that entrepreneurs would jump into motion and begin their own firms as quickly as possible. This poses an issue for employers because hiring is an extended and expensive process that may take months and even years to recoup.

For example, one recruiter told us, “I’m looking for candidates who will be long-term employees because we invest heavily in each hire. When I interview people, it usually raises a red flag when they say they want to start their own business or already have a business on the side.”

A related concern: An worker who leaves to start a brand new enterprise may be tempted to steal talent, clients and tactics from the old employer.

Recruiters were also concerned that former entrepreneurs might refuse to take directions. Spending time as your own boss can make it difficult to adjust to a lower place within the organizational hierarchy. As one recruiter in our study put it, former business owners are “used to being the ones making all the decisions.”

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They also raised the difficulty of job fit, questioning whether the knowledge and skills of former entrepreneurs would translate into traditional work. “The problem would be that the skills developed are not transferred,” said one in all our interlocutors. Additionally, for entrepreneurs who’ve worked alone, it may be difficult for recruiters to understand how well they are going to perform with others.

Even if a former entrepreneur is a superb fit for a job, recruiters may fail to connect with them due to stereotypes or misconceptions about their experience. A former bakery owner we interviewed recalls how she applied for a job and was pigeonholed based on her experience: “They said, ‘Oh, I wish we’d hired a baker!’ and I replied, “No, no, no, I’m applying to your front desk.” It was as in the event that they thought I only knew a baker, but that was removed from the reality.

Landing for a job interview

Our research adds: increasingly more evidence that former entrepreneurs have difficulty obtaining job interviews and offers. Fortunately, it also offers information that organizations can use to improve their candidate pool and that enterprising job seekers can use to improve their probabilities.

Our research shows that former entrepreneurs face less prejudice after they apply for jobs that appear entrepreneurial – in other words, consistent with stereotypes about business owners. For example, they’re more likely to be interviewed for positions with lots of autonomy, equivalent to latest business development, than for those who require compliance with many rules, equivalent to legal compliance.

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Therefore, our research suggests that recruiters – perhaps unintentionally – have a bias against former entrepreneurs. Recognizing such trends is a superb first step towards minimizing their impact. Moreover, not all recruiters are affected equally: one other recent study found that recruiters who’re also affected previous entrepreneurial experience – in addition to women and recently employed people – were less likely to exclude former business owners. Therefore, organizations with more diverse recruiting teams and a deeper understanding of entrepreneurial experience may experience less biased results.

For their part, job applicants from former entrepreneurs could be clever to highlight desirable facets of their skilled history. For example, a recent study by the Boston Consulting Group found that executives consider innovation to be one in all their skills three most significant priorities. Former entrepreneurs should emphasize their many helpful features – e.g passionate AND creative – that contribute to innovation.

The lack of traditional employment history may be an obstacle for entrepreneurs trying to re-enter the labor market. Recruiters who overlook their value risk losing strong candidates.

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This article was originally published on : theconversation.com
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Business and Finance

Tariffs can grow, but also a black strategy

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With the rise in inflation and tariffs, black entrepreneurs don’t shrink with fear – they seem, strategies and support them forward. I saw it first hand on Tuesday evening in Russell Innovation Center for Entrepreneurs (Rice) in Atlanta, where dozens of black founders gathered on a powerful night of dialogue, combination and brightness based on solutions.

The event, a part of the continuing programming of Rice’s “retail readiness”, was greater than just a panel. It was a forum of survival – and a reminder that owners of black firms at all times had creativity and courage to adapt under pressure. At a time when economic winds are essentially the most difficult to hit products based on products, this community is predicated on strategy, not a shortage.

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Tariffs have increased, but wisdom too

One of the essential challenges was the growing load of tariffs for imported goods that increase costs around the globe – from materials and packaging to international shipping. While the specter of economic uncertainty increased, the climate within the room was not panicked.

Asked in the event that they are afraid of growing tariffs, only a few participants raised their hands. But asked in the event that they feel influence, almost everyone did that. Instead of alarm bells, the conversation focused on solutions: improvement of logistics, taking control of the warehouse, limiting unnecessary expenses and re -assessing third party suppliers.

The prevailing message: be agile, not afraid. Panelists called us to regulate surgery before making drastic changes. The goal is just not to shrink in response to pressure – it moves smarter.

Thinking about a larger, no less

Another powerful? You have to redefine what “little business” really means. Many black entrepreneurs limit their scale from habit or perceived restrictions. But, because the panel noted, in response to federal definitions, a small company can employ as much as 500 people. This implies that we’ve got a place to dream – and constructing – constructing.

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Terri-Nichelle Bradley, the founder, entered the home along with her own journey. Known for putting educational toys within the principal retailers, akin to Target, Bradley now opens her own brick store in Atlanta on May 14. It is a brave turning point that restores ownership in her hand-her story was a unique example of what it means to regain narrative and strategy.

“Black business owners do not need every answer right away,” she said within the room. “We just have to want to figure it out.”

Recovering the narrative of Dei

The conversation also concerned a hard truth: the rise in funds and guarantees of the corporate after 2020 is assumed. But the energy within the room was not bitter – it was focused. If external support dries, the reply is just not waiting – it’s best to focus again.

Daughter of Carol sold an independent entrepreneur after a decade under the property of L'Oreal USA

Panelists encouraged us to dual authenticity and a deeper reference to the communities that may already take us. This means consistently appearance, without floating and nurturing relationships with those that deliberately buy black, women and veterans.

It is just not nearly representation-it will devote property, self-determination and economic independence.

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The evening ended with a high note with practical network activities. We were asked to avoid wasting two things: what we wanted and what we can offer. Then we exchanged this information with someone in the entire room. It was greater than a icebreaker – it was a plan.

The message was crystal clear: relationships are resources. And in such rooms, cooperation is a currency.

At a time when the headlines speak about recession and withdrawal, the entrepreneurs with whom I sat do the other. They should not waiting for saving or wonderful financing. They construct their future, one deliberate movement directly.

No panic. Just a goal. And a lot of power within the room.

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(Tagstranslat) entrepreneurship

This article was originally published on : thegrio.com
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Business and Finance

Hope Operation celebrates the day of green socks

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John Hope Bryant


Operation John Hope Bryant Hope celebrated the end of the month of financial knowledge On April 30 with Green Socks Day Challenge as a visual option to emphasize the importance of financial knowledge.

As a nationwide movement, Hope Bryant and the stars of the corporate world, sport and entertainment supported the challenge of Green Socks Day, wearing live socks, stating: “Put your best foot forward.” In cooperation with Operation Hope, the initiative was supported by financial knowledge for everybody (FL4A) with a view to promote financial knowledge as national priority and gain adhesion in various state lines, strengthening people, organizations and communities to take crucial activities by supporting financial education for everybody.

Participants were encouraged to take a selfie or video in green socks and publish it in social media using the hashtag # Greensocksday. The quiz can also be available to people fascinated about assessing their financial skills. According to a press release, Operation Hope will probably be distinguished by green socks on the Times Square Nasdaq in New York.

While socks may be bought at Walmart locations, other firms supporting this initiative include the most important financial institutions, comparable to the American Bank, Trust and Huntington Bank. Other firms on board are iheartmedia, Delta Air Lines, MLB, MLS, NBA, NHL, Nascar, Nasdaq, Shopify, OpenAI and UPS.

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Hope Bryant also received support from the US government at the starting of the annual celebration. Meeting with the Secretary of the Treasury Scott Bessent, two long -time colleagues emphasized the importance of financial education built into the structure of American life, discussing ways of deepening cooperation between private and non-private sectors with a view to extend access to financial tools and knowledge. “Too long, knowledge of finances was treated as a luxury,” said secretary Bessent.

“This is a necessity, just like reading and writing. John and I have been leveled in this for almost a decade and I am proud that I can stand with him in April and later.”

In addition to April, corporations, small firms and social organizations are encouraged to have interaction employees in the initiative by organizing events related to financial skills and pushing financial resources.

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This article was originally published on : www.blackenterprise.com
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Business and Finance

John Hope Bryant shares the rent into his own strategies

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John Hope Bryant


John Hope Bryant, founder and general director of Hope operations, recently shared his rent strategies, which in his opinion provide tenants with “dignity, possibility and grace.”

Bryant still conducts efforts to fill the gap in the field of racial wealth by promoting financial skills and increasing the ownership of a black house. Financial teacher he outlined compassionate and Surprising plan to assist tenants Not only construct your credit results, but in addition prepare for potential Financial difficulties. The entrepreneur was once “the largest owner of the minority of single -family houses in the country.”

  • The tenants’ rent will likely be reduced by 10%in the event that they raise their creditworthiness from 600 to 700
  • If the tenant maintains his place of residence for 18 months, he receives 1 month “Life Event Credit” for an 18-month term. This corresponds to 3 months of “free rent” in the event of monetary difficulties.
  • Tenants are also in a position to borrow from the security deposit, paying off the money in small increases over time.

Hope operation has grow to be a number one organization non -profit Dedicated to financial reinforcement. Under Bryanta’s leadership, the organization facilitated over $ 2 billion in private capital to support home properties, small corporations and community development in underestimated areas.

Despite these efforts, black home properties remain much lower than in the case of white Americans. Black home owners from 2024 it accounted for 46.4% population. However, the total variety of houses is 65.7%, said Axios.

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Bryant emphasized the importance of getting a house in Building generational wealth.

“The whole experience related to home properties is embedded in aspirative economic growth and creating wealth,” he said in the last post on Instagram.

Bryanta’s work with Hope operation still raises the black community. The organization equips individuals with knowledge and tools mandatory to realize financial stability and residential owner. He also divides financial strategies in its weekly podcast,

Due to the incontrovertible fact that efforts are in a position to bring a racial gap, Bryanta initiatives remain a central force in promoting financial skills and economic possibilities in black communities.

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(Tagstranslate) John Hope Bryant

This article was originally published on : www.blackenterprise.com
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