In 2022, the quiet quitting phenomenon, an enduring pandemic, and the Great Resignation produced the perfect storm of career disenchantment, economic uncertainty, and free time. While pandemic restrictions are long gone, the global economy has reopened to record inflation, a war in Ukraine, and a multitude of other economic headwinds.
The heads of the largest Wall Street banks warned that the economy would dip into a recession in 2023. That said, learning how to attract and retain workers and when and where to make the difficult decision to execute layoffs is a significant source of stress for financial leaders who must contend with the need to contain costs and the robust labor market.
According to Workhuman’s Human Workplace December Index Survey, the same economic headwinds CFOs face, such as supply chain disruptions, inflation, and fluctuations in foreign currency markets, also cause 61.8% of employees to feel insecure in their current positions. However, the survey found that almost half of the employees have taken on side hustles to mitigate those anxieties or make up for the rising cost of living, indicating that the entrepreneurial spirit remains alive and well.
What might 2023 have in store for entrepreneurs?
America’s Entrepreneurial Renaissance Shows No Signs of Dwindling
Despite growing fears of the U.S. entering a recession, America’s entrepreneurial renaissance isn’t slowing down anytime soon. People are still going into business for themselves, with new business applications increasing. Over 180,000 more small businesses opened than closed in the last year. From March 2020 to March 2021, approximately 1.1 million new small businesses opened, according to data from the U.S. Small Business Administration (SBA).
Looking at history, many of today’s most well-known companies were founded during the Great Recession, as workers shifted to entrepreneurship out of necessity or opportunity. However, new businesses are still resilient today. Even if a recession develops, the 2022 Small Business Now report indicates that 90% of startups are confident they will still be in business a year from now.
News of layoffs at mainstays of the U.S. economy abound, but small businesses have been quietly chugging along, even hiring while corporate workers are given pink slips. Further, LinkedIn data shows that while 36% of employees at large companies are concerned about layoffs and budget cuts, just 27% of workers at smaller firms share the same worries.
A Looming Recession Isn’t Deterring People From Starting a Side Hustle
A growing percentage of the U.S. workforce sought freelancing opportunities to earn money, advance their career and take charge of their professional lives. Upwork’s 2022 Freelance Forward study found that 39% of the U.S. workforce, or 60 million Americans, worked in a freelancing role during 2022, an all-time high.
This shift is also driven by satisfaction. More than two-thirds of freelancers report feeling optimistic about their employment prospects, feeling more stimulated, and being happier as a freelancer than they were at a traditional job. Moreover, all this work/life balance results in greater health and well-being for freelancers, 73% of whom report having more opportunities to address their personal, mental, or physical health needs, and 64% say they have achieved stronger personal relationships because they can better support their family.
About 62% of the 1,000 full-time U.S.-based employees surveyed revealed that they are concerned with their job security due to fears rooted in the current macroeconomic conditions. Yet, the mixed economic forecast isn’t dampening Americans’ entrepreneurial spirit. To mitigate anxieties as well as the rising cost of living, nearly half (49.2%) of employees have taken on a side hustle in addition to their full-time jobs in recent months, with 43.9% of employees citing a potential economic downturn as a factor in their taking on other gigs and 8.13% saying they see the second job as a safety net in case they are laid off, according to the Workhuman’s Human Workplace December Index Survey.
2023 Is the Year to Find an Opportunity
In 2023, small business owners will bet on themselves and concentrate on the aspects of business ownership within their control.
Each individual’s path to entrepreneurship is unique, but all successful entrepreneurs must be prepared for failure and criticism and constantly learn and improve themselves. However, with the right attitude, effort, support, resources, and tools, overcoming these challenges is possible, and the rewards can be worth it.
Launching a business is challenging regardless of the circumstances and requires a strong work ethic that embodies hard work, ambition, and creativity. Yet, more and more individuals should use this moment to take control of their destinies.
Are you interested in starting your entrepreneurial journey? Connect with your Herbalife independent distributor or learn more at Herbalife.com.
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Humbi Calleja is the vice president and general manager for North America at Herbalife. He is responsible for all business, strategic, sales and marketing functions across the region, including the U.S., Canada, Jamaica, and the Caribbean.
By Humbi Calleja, vice president, and general manager for North America at Herbalife