Press Releases

Bellevue, Wash. (May 13, 2008) – Survey data released today shows that 60 percent of new business owners come from management or executive backgrounds.

The survey, conducted by Guidant Financial Group, a leading provider of self-directed IRAs and small business financing solutions, also indicated that the most popular businesses being launched are within the business services and consulting industry (13%), followed by retail (12.7%) and home services (11.7%).

“These statistics show that a large number of entrepreneurs are professionals who have determined that they can do better working for themselves,” says Guidant CEO and Cofounder David Nilssen of the survey of nearly 325 new business owners. “It’s not surprising that people with the drive and ambition to reach management and executive positions are the same people who take the initiative to go into business for themselves.”

Brian Miller, president of The Entrepreneur’s Source, a franchise coaching company, is not surprised at the results of Guidant’s survey.

“One of the studies we’ve recently seen by Challenger, Gray and Christmas – one of the larger outplacement firms – showed that about 75,000 corporate employees are laid-off every month,” says Miller. “That is 30,000 more per month than about six years ago.”

Miller believes that lay-offs of this nature have changed the employment sector dramatically. Both employers and employees have less loyalty to one another. Additionally, Miller is not surprised that executive-level entrepreneurs are turning to the business services sector, especially consulting, considering their background and training.

“The corporate people being laid off are all people that have had training,” he says. “They’ve been trained on running businesses, Profit and Loss Statements, sales and marketing. They have the skills, background and credibility to be able to go into small businesses [as a consultant] and say ‘here’s what I can do to help you.’”

With a 33 percent market share in the franchise coaching marketplace, The Entrepreneur’s Source is the largest player in the multibillion-dollar franchise coaching and consulting industry, which is growing at an annual rate of 40 percent.

“Guidant’s survey solidifies what we have been seeing of the business coaching and consulting industry over the last several years,” says Miller. “Because the economy, to a large extent, is being fueled by small business right now, businesses are really turning to outside coaches and consultants for help. That is why this tends to be a burgeoning area for people who are looking to become self-employed.”