Start-Up Activity Edges Upward As Banks Grow More Willing to Lend
by: Andrew Schneider, August 19, 2013 12:08:00 am
Global outplacement firm Challenger, Gray & Christmas says that just over 4% of job-seeking managers and executives chose to start their own businesses between January and June. That’s up from 3% during the same period last year.
CEO John Challenger credits the growth in start-up activity to banks’ greater willingness to lend. But he says the percentage of job seekers opting for self-employment is still well below where it stood following the 2001 recession.
“It’s not that starting a business is more risky now than usual. Businesses are always risky, starting a new business. The problem has been that people have had a very difficult time getting access to credit to start their businesses. Even the people they might tap normally, friends and family, have less income or risk tolerance available.”
The number of self-employed workers outside the agricultural sector now stands at just over 8.8 million, about ten percent down from its pre-recession peak.