Is there a stigma with Self-Employment?

Having an entrepreneurial mindset is a good thing.

Fostering an entrepreneurial spirit and vibrant entrepreneurial ecosystem has always been at the forefront of my work.  Empowering youth through entrepreneurial thinking at an early age has always been encouraged and endorsed at every level.

My 20+ year career has been focused on People Empowerment, and Entrepreneurship has been a central theme.  

Let me tell you a story.

I’ve been fortunate to have a rewarding and challenging career. If your career is focused on helping others reach their entrepreneurial potential, as mine has, it’s difficult to ignore the urge that is quietly building over time. So, I did what many people do when they have the entrepreneurial itch, I scratched it with starting a side hustle business. I was inspired and motivated to be part of the solution, so I acted. That was 5 years ago. And 3 years ago I co-founded my second business with my sister. We had an idea and we made it happen. A ton of work went into both businesses.

20 months ago I decided to take the leap into full-time entrepreneurship and left the security of my full-time job.  The timing was right.

Why not. I built a career focused on helping people.  This is all part of my life’s work.

I’ve learned a ton. I’ve challenged myself in big ways. I took risks. I made tough decisions and solved big problems. I’ve made sales and built a brand that has positive reviews, referrals and repeat customers.  

I did it.

I created products and services from nothing. I put something good out into the world.

Because I wanted to.

As much as I love my businesses, they are still just one aspect of me.  I have more to give.  And the truth is, I miss some of the things I did in my work.  It doesn’t mean I’m a failure or that I am giving up. My businesses will always be a part of me. I just want more.

Life is supposed to be a continuous journey of self-discovery. Constantly evolving into your best version.   Isn’t it?

So, I’m actively looking for opportunities where I can contribute and add value.  I have more to give, more work to do.

So, imagine my surprise when a Recruiter asked me, “So, your last full-time employment was in June 2018?”

Say what?

On the surface, it was just a little harmless question.  Underneath, it was the massive proverbial ‘elephant in the room’.

It was fully loaded, and it hit me without warning. A punch in the gut. That’s how it felt.

In that moment, I somehow managed to respond as articulately and diplomatically as I could.

But it left me shaken.  Demoralized really.   

Afterwards, as I was trying to fully digest the conversation, it dawned on me.  She did not consider my self-employment as ‘real’ employment. WOW. All that I have accomplished, it didn’t matter. She didn’t ask me anything about my business. What inspired me to start them. What lessons I have learned. Biggest accomplishments. Nothing, Nada. It didn’t matter.

Where does that leave me?  This is a Recruiter, who was calling to screen me for a position I was completely qualified for.  All she saw was the recent gap in my ‘full-time’ employment. My current self-employment didn’t matter.  

So, I typed this simple string of words in a google search, “Is there a stigma with self-employment’?

Oh boy. 

I’m clearly not the first person to ask that question.  

It’s been researched. There were studies. There are findings.  

There is a stigma. No doubt about it.

A paper, entitled “Self-Employed But Looking: A Labor Market Experiment” presented findings from a study that challenged the proposition that “it is always possible to quit and re-enter employment if a venture is unsuccessful [so that] it makes good sense to start a business that could yield large rewards.”

What the research finds instead, in an elaborate field experiment over the course of two years, is that self-employed individuals who seek wage positions “systematically attract fewer interview invitations” than comparable peers who have spent their previous careers in paid employment.

In the field experiment, entrepreneurs received about 63% fewer positive responses from potential employers than wage employees received.

In the words of the study, “our results leave little doubt that entrepreneurs experience adverse treatment… The choice to become an entrepreneur can result in an involuntary lock-in, a factor that should be taken into account in planning one’s future career.”

Involuntary lock-in? Really?

The paper concludes with the statement, “Its career implications for entrepreneurs seem disturbingly clear, suggesting strongly, as they do, that “having previously been self-employed is in itself a negative signal on the job market.”

I also found an article titled, “Entrepreneurs need not apply. Companies shun the self-employed” which shares some highlights from this research, and also adds how ironic this is considering company executives and human resources say they want self-starters, innovative hires, a certain entrepreneurial spirit.

Another article, Working self-employed stigma which highlights key points from the study and additional insight and perspective from Brandon Smith, a Career Coach and Workplace Consultant who adds this little nugget: Most hiring managers don’t see the positives a former entrepreneur can bring to the organization – initiative, creativity, innovation, willingness to jump in and help. Rather, they assume the candidate failed in their endeavours and is just looking for a bridge until the next opportunity.

Smith suggests downplaying any entrepreneurship on your resume and ‘get your story down’.

Holy heck, really?

So, now what?

I can’t (and won’t) simply erase my self-employment career off my resume. I’m gosh darn proud of it.  

I’ve learned so much through my businesses. It’s applied learning in its most purest form.

I have an entrepreneurial spirit. But I’ve also learned throughout this journey that I’m far more suited to have a side-hustle(s). I get to scratch the entrepreneurial itch and put something good out into the world, and still do more.

I’m self-aware, and this is a good thing. 

But I honestly never thought that taking the leap 20 months ago into full-time self-employment would potentially put a negative mark against me for the remainder of my career.   

I have so much more to give. 

I know this is not a one size fits all approach, and there are many entrepreneur-led and minded companies that are constantly scanning the market for entrepreneurial talent. I know that. I’ve seen entrepreneurs close their businesses and find employment in the fields. I know that too.

What’s troubling is hearing this bias from a Recruiter. I’m someone who has dedicated a career to people empowerment with entrepreneurship as a central theme.

People Empowerment. Entrepreneurship.

So, that elephant in the room that I mentioned earlier is big and unwanted, and he’s crowding my space.

I’d love to hear your thoughts on this.  What has your experience been?

If you’re a Recruiter reading this, I’d welcome a conversation anytime. 

There’s so much more to me than, “So, your last full-time employment was June 2018?.” 

So much more.

With gratitude,