The Great Resignation, Good or Bad for Entrepreneurs?

[MJ DeMarco]

So with The Great Resignation still unfolding, do you think this will be good or bad for entrepreneurs?

It might be great for me since I sell entrepreneurial related content, but in general for entrepreneurs it might be a bad thing.

1) Economically speaking, not everyone can be an entrepreneur
2) Introduces more competition in marketplaces. Whereas an entrepreneur might have had 8 competitors, now she may have 25.
3) Introduces tighter labor market shortages, higher wage/salary costs, and a harder time finding good employees.
4) Creates a more disposal mindset for employees...

What do you think?

What Is The Great Resignation? Causes, Statistics, and Trends

The Great Resignation describes the elevated rate at which U.S. workers have resigned from their jobs starting in 2021.

www.investopedia.com

 

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[Kung Fu Steve]

So with The Great Resignation still unfolding, do you think this will be good or bad for entrepreneurs?

It might be great for me since I sell entrepreneurial related content, but in general for entrepreneurs it might be a bad thing.

1) Economically speaking, not everyone can be an entrepreneur

It's super exciting. I'm absolutely fascinated by what's going on!

I agree not everyone can be an entrepreneur the way we think about it... but I'm always surprised at what people can do when it's an absolute must. When they have no other choice but to provide value to the community, I think it will force some people into entrepreneurship... and while they may never build a massive company -- they may just be an artist who makes a good living doing their craft.

2) Introduces more competition in marketplaces. Whereas an entrepreneur might have had 8 competitors, now she may have 25.

This is going to sound way out there and I'll probably have to refine my thoughts a bit but with the whole Metaverse thing coming... I think we will revert back to small local businesses like it used to be pre-internet. Just... in a much more trippy... internet way... where people find communities and places to "hang out" in this virtual world (kind of like they do now)...

I mean imagine the "The Fastlane Forum" as a store somewhere in this virtual place... how many other people will set up shop right next door?

It's a little weird in my head still. Kinda trippy. But I already see a trend where people want to go back to that "1,000 true fans" model instead of managing the expectations of the general public.

3) Introduces tighter labor market shortages, higher wage/salary costs, and a harder time finding good employees.

I think the opposite of finding good employees. Yeah, wages will be higher but I think the shift will be in their resumes of what certifications/degrees they've had into what they can actually DO for you/what they've already done.

4) Creates a more disposal mindset for employees...

What do you mean?

 

[Andy Black]

Kinda like Steve mentioned, I think more will join the creator and gig economy.

For the entrepreneurial minded, change is a good thing. Opportunities are created in the folds of the changing landscape.

Where’s the puck going?

 

[Kung Fu Steve]

Where’s the puck going?

Question of the decade!

 

[Kak]

I think this very clearly sped up a pretty well observed and documented decentralization trend. This is actually the type of market behavior that flattens the curve on "iNcomE iNequAlity" without any government intervention. The cool part to me is that with more and more people observing the regulatory environment that entrepreneurs have to deal with on a day to day basis, there might actually be some reforms that are spurred on from this.

Next, look at it like a growing market... The poll almost basically boils down to "do you view this as a threat or opportunity."

At first I thought, "it sucks of course, because more competition," but then I realized I was viewing it as a threat, when I should turn a threat into an opportunity. If you recognize a legitimate threat and decide to do nothing about it, that was wasting wisdom. Use it, find a way to make it work for you.

So after giving it some more thought, the big companies I compete with are absolutely sucking more and more every day because of this. I am a much more agile firm that can stand out in the sea of under resourced companies. It is a perfect time to show our competence to as many customers as possible. Same company, different focus.

Next, with the radio show, I serve an entrepreneurial market. Maybe more people do all they are capable of instead of selling themselves short. When someone wins, it is only at your expense if they're better than you. Don't let them be.

The more people taking bigger things upon themselves, the higher all of our standards of living become. Look up the concept of "the great enrichment" The Great Enrichment | National Review

This could literally be the next catalyst for a lot of cool progress. (and not political prOGreSS)

Perhaps "the great enrichment 2.0"

Let's also be honest... How long are most people who side walked through the last decade going to last? The labor market will bounce back, at least a little.

 

[Guest-5ty5s4]

It's good for the newbies who become entrepreneurs. It's bad for entrepreneurs who need and/or have lots of employees, and bad for employees who think they're going to be entrepreneurs but can't hack it.

I voted "not good," but maybe should have picked "neutral." It depends on "good for who" and from what angle?

edit: Thinking about this more, it's certainly GOOD. I was mostly imagining entrepreneurs who have hundreds of employees - many do exist, and that can still be a legal "small business."

 

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[Andy Black]

"good for who" and from what angle?

Good for those who see opportunity in change and ride the wave somehow.

Instead of being a small cog working in a big machine and living in a big city, we’re almost going back to when everyone lived in a village and was a self-employed craftsman.

What will those new “villages” look like? What will they need?

What about all those new self employed craftsmen? What will they need?

I see this forum growing exponentially as more and more people find MJ’s books and teachings. And look for entrepreneurial safe havens online.

I see more people becoming independent thinkers and taking more responsibility for their life and direction.

Ask kids what they want to grow up to be and many will say a YouTuber. That’s an independent creator mentality we didn’t see our kids aspire to not so long ago.

It was happening anyway. It’s just been sped up.

Just some of my thoughts…

 

[BizyDad]

It's good for the newbies who become entrepreneurs. It's bad for entrepreneurs who need and/or have lots of employees, and bad for employees who think they're going to be entrepreneurs but can't hack it.

I voted "not good," but maybe should have picked "neutral." It depends on "good for who" and from what angle?

My thoughts are very similar to this. Short term, I think it's not good. Intermediate term, maybe a wash.

But I'm also considering all those who fail at entrepreneurship. They'll likely re-enter the labor market more humble and more educated about what it takes to succeed in business, thus hopefully making for a more nimble, agile, and skilled workforce. Hopefully. And that would be a long term good.

Or they'll riot in the streets, vote for socialism, and carry Eat The Rich signs.

 

[Guest-5ty5s4]

My thoughts are very similar to this. Short term, I think it's not good. Intermediate term, maybe a wash.

But I'm also considering all those who fail at entrepreneurship. They'll likely re-enter the labor market more humble and more educated about what it takes to succeed in business, thus hopefully making for a more nimble, agile, and skilled workforce. Hopefully. And that would be a long term good.

Or they'll riot in the streets, vote for socialism, and carry Eat The Rich signs.

I agree, hopefully they realize how f*cking hard it is to make it in business and have newfound respect for those who carry that responsibility every day.

But the alternative seems more likely, like you described

 

[jdm667]

It is good for entrepreneurs overall.

Employees who are not a good fit for your business will leave, which hurts short term but is better long term.

As wages rise, it will become more profitable to find a way to deliver the same services for less money (by outsourcing, automation/robotics/AI, etc.)

In the long term, the ability to do things without employees will make it easier for entrepreneurs to get started.

Compare the type of website you could build by yourself in an hour for $50: 20 years ago, 10 years ago, and now. Big difference.

Also imagine taking payments on your website 20 years ago, 10 years ago, and now.

Tech just keeps advancing. Yes, there may be fewer employees available, but technology will allow each one to do much more for you.

 

[Niptuck MD]

So with The Great Resignation still unfolding, do you think this will be good or bad for entrepreneurs?

It might be great for me since I sell entrepreneurial related content, but in general for entrepreneurs it might be a bad thing.

1) Economically speaking, not everyone can be an entrepreneur
2) Introduces more competition in marketplaces. Whereas an entrepreneur might have had 8 competitors, now she may have 25.
3) Introduces tighter labor market shortages, higher wage/salary costs, and a harder time finding good employees.
4) Creates a more disposal mindset for employees...

What do you think?

What Is The Great Resignation? Causes, Statistics, and Trends

The Great Resignation describes the elevated rate at which U.S. workers have resigned from their jobs starting in 2021.

www.investopedia.com

View attachment 41079

more book sales for you
@MJ DeMarco lots of jeff trotmans coming out of the woodworks!

 

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[Gazbo]

I see it twofold, first as a challenge to the already resigned/entrepreneurs out there (you lot in a nutshell ) to up their game and secondly that it will help improve whatever sections of industry these people came from - it will release their shackles somewhat and hopefully inspire them to create amazing things.

It's not just about getting your piece of the pie, its about making the pie bigger after all!

 

[Guest-5ty5s4]

Just remember that the company that built your house was started by an entrepreneur. Entrepreneurship is not relegated to one-page websites. Employees are absolutely vital to most businesses.

 

[Gazbo]

My thoughts are very similar to this. Short term, I think it's not good. Intermediate term, maybe a wash.

But I'm also considering all those who fail at entrepreneurship. They'll likely re-enter the labor market more humble and more educated about what it takes to succeed in business, thus hopefully making for a more nimble, agile, and skilled workforce. Hopefully. And that would be a long term good.

Or they'll riot in the streets, vote for socialism, and carry Eat The Rich signs.

I see this too, most likely a 5050 split of newly humble potential employees and newly radical woe is me protestors

 

[Gazbo]

Just remember that the company that built your house was started by an entrepreneur. Entrepreneurship is not relegated to one-page websites. Employees are absolutely vital to most businesses.

Yep, totally agree with that.
My wife runs a glazing company, without employees there wouldn't be many windows fitted that is for sure!

 

[WJK]

It is good for entrepreneurs overall.

Employees who are not a good fit for your business will leave, which hurts short term but is better long term.

As wages rise, it will become more profitable to find a way to deliver the same services for less money (by outsourcing, automation/robotics/AI, etc.)

In the long term, the ability to do things without employees will make it easier for entrepreneurs to get started.

Compare the type of website you could build by yourself in an hour for $50: 20 years ago, 10 years ago, and now. Big difference.

Also imagine taking payments on your website 20 years ago, 10 years ago, and now.

Tech just keeps advancing. Yes, there may be fewer employees available, but technology will allow each one to do much more for you.

I totally agree.
When I started appraising RE in the mid-1980s, I needed 4 full-time secretaries to get those reports out the door. By the time I retired in 2003, it was just me and my computer. No helpers were needed.
And now I manage my residential rental business and everything else with the help of just one part-time assistant; my management work includes me doing all the bookkeeping for my paperless accounting system which integrates all the bank accounts and businesses ledgers.
The current technology has really helped me to be a lot more productive as a solo entrepreneur.

 

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[MitchC]

There’s an ecom guru in Australia with a blue tick on Instagram which means his comments come up the top on every post.

He comments on all the news and conspiracy pages about mandates and freedom etc.

I’m not sure if this is just him being him or if he has seen a huge marketing opportunity and a way to reach a bunch of people who are now going to be jobless and looking for ways to make money online.

Either way this is definitely a huge change which results in a huge opportunity and new market being born.

 

[Jobless]

The so-called 'Great Resignation' is not (as purported) a result of the pandemic, but a consequence of government regulations that disproportionately affect the private sector job market. This means the balance between private and public sector becomes further skewed in favour of public sector. This causes higher inflation, higher taxes, more welfare, more regulations, less growth, less freedom-- Seldom beneficial for entrepreneurs!

Thankfully for those in power, the theory of the 'Great Resignation' states that it is a voluntary and natural workers' movement. People deserve to work from home, and get better pay, right? The conflict is shifted from people vs. power to people vs. private employer. This perception hides the true causes and future consequences. Many social movements promoted in media are manufactured from the above and/or act as obscurement, as history readily shows. Look up the similarly named 'Great Leap Forward' or the many recent 'colour revolutions'. For the modern version, just analyze the different movements of 'Social Justice'.

 

[jdm667]

Just remember that the company that built your house was started by an entrepreneur. Entrepreneurship is not relegated to one-page websites. Employees are absolutely vital to most businesses.

I agree, we will always need the skill of those workers. I was thinking more of tech and efficiency for mundane tasks to speed things up.

Think about how many man-hours it took to build a house before power tools vs. now.

Imagine cutting wood with a handsaw, every single time. No power saws. No power drills. No nail guns.

You would need either more employees or more time to build the exact same house.

 

[Andy Black]

Worth a skim. Not to get a job, just to see what training the folks at Udemy are advising people to pick up.

2022 Workplace Learning Trends Report | Udemy Business

Unlock your workforce’s potential by leveraging the insights of the Udemy Business 2022 Workplace Learning Trends Report.

business.udemy.com

 

[RussRussman18]

It will be a wash. This doesn't change the current state of the american economy at large, which is poor. Most people don't even have $400 in their bank account, and are saddled with debt. Those that become gig workers will find themselves making the same or less after business expenses, with more unpredictable schedules. The "success stories" coming from the great resignation seem to come entirely from big tech, which is unsurprising. Those with in-demand skills in high technology can change to remote contractors with very little overhead, without much change in work quality for the clients. Most other industries are not the same

 

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[BD64]

It's hard to say but ultimately I think it comes down to why people are resigning.

If the answer is along the lines of: People feel unfulfilled & underutilized at theirs job and aspire to do bigger, better things as well as raise their productivity/value; then it bodes well for the future. I think in this case a rising tide will raise all ships as innovation + entrepreneurship is what raises the standard of living for society at large.

If the answer is consists of woke/liberal/communist garbage buzzwords & idioms then we are f*cked. This would read something like: People 'quitting work' to live more 'fulfilling lives' where they can 'chase their passions' all while having the 'rich pay their fair share' so that the government is able to continue giving away free money like candy... but don't worry inflation is transitory and unemployment is at an all time low! Oh and best of all, public spending plans will cost nothing as they are already paid for!(?)

 

[DonJulio]

Good for workers in the short term, but overall business owners in the long term will ultimately win. If all the workers resign, the business owners may face a couple months of financial loss and be frustrated, but soon the business owners will bring in foreign cheap labor to fill those same positions or use robotic automation to just put some sort of robot to fill the position to do the job. Ultimately the great resignation will speed up the downfall of the modern worker and bring in the age of automation and foreign labor faster. This is the web3 age where business can be done all over the world and new remote staff are a zoom call away. I understand why the workers are resigning, but at the end of the day since workers have little to no money and the business owners control the resources they will win.

 

[jpcoder]

This is the web3 age where business can be done all over the world and new remote staff are a zoom call away.

I don't think this is entirely true, at least if you are talking about foreign remote workers. While it is possible to have remote workers in foreign countries, the time difference can cause significant coordination problems. It is nice to be able to wake up and find that work was done for you while you slept, but it's annoying when you wake up and find that it was all done wrong and you have to wait 24 hours for the correction. That said, having remote workers that are just a couple of time zones away can work fairly well without major coordination issues so the talent pool can still widen and potentially allow hiring cheaper staff that live in lower COL areas.

 

[MJ DeMarco]

Job Exits Hit Record High​

An estimated 4.5 million workers voluntarily quit their jobs in the month of November, according to government data released yesterday. The quits rate, the percentage of resignations relative to total employment, hit 3% for the month—matching the rate in September. Both figures are the highest on record. Economists say workers being able to quit their gigs for better jobs is a sign of a healthy economy, though some analysts fear high quit rates could lead to higher wage inflation. The data showed 6.7 million new hires were made in November, with 10.6 million job openings on the last business day of the month. Experts have cited pandemic burnout, a shift in worker priorities, and better opportunities as reasons for what’s been known as the Great Resignation. The data on the labor market—including the government’s employment report expected to be released Friday—helps the Federal Reserve determine interest-rate policy.

 

[Nour21P]

So with The Great Resignation still unfolding, do you think this will be good or bad for entrepreneurs?

It might be great for me since I sell entrepreneurial related content, but in general for entrepreneurs it might be a bad thing.

1) Economically speaking, not everyone can be an entrepreneur
2) Introduces more competition in marketplaces. Whereas an entrepreneur might have had 8 competitors, now she may have 25.
3) Introduces tighter labor market shortages, higher wage/salary costs, and a harder time finding good employees.
4) Creates a more disposal mindset for employees...

What do you think?

What Is The Great Resignation? Causes, Statistics, and Trends

The Great Resignation describes the elevated rate at which U.S. workers have resigned from their jobs starting in 2021.

www.investopedia.com

View attachment 41079

It's both good and and bad but more on the good side. And that's because it address the demands of employees, which is an opportunity for you as an entrepreneur and also a good way to kick your competitors a$$.

Here's an example : If everyone is sick of having one 2 weeks vacation a year ( not sure whether this is accurate or not, just assume ), offer 1 week vacation every 4 months. If everyone is sick of the 5 days workweek, offer 4 days workweek.

So with The Great Resignation still unfolding, do you think this will be good or bad for entrepreneurs?

It might be great for me since I sell entrepreneurial related content, but in general for entrepreneurs it might be a bad thing.

1) Economically speaking, not everyone can be an entrepreneur
2) Introduces more competition in marketplaces. Whereas an entrepreneur might have had 8 competitors, now she may have 25.
3) Introduces tighter labor market shortages, higher wage/salary costs, and a harder time finding good employees.
4) Creates a more disposal mindset for employees...

What do you think?

What Is The Great Resignation? Causes, Statistics, and Trends

The Great Resignation describes the elevated rate at which U.S. workers have resigned from their jobs starting in 2021.

www.investopedia.com

View attachment 41079

It's both good and bad but more on the good side. And that's because it addresses the demands of employees, which you, as an entrepreneur, can satisfy and kick your competitors a$$.

For example, if your competitors offer a mere 1 week vacation a year and employees are sick of it, offer 1 week vacation every 3 months. If employees are sick of 5-days workweek, offer 4-days workweek.

By doing this, you kick your competitor's a$$ because when their employees see you offering what they need, they will demand the same thing which will put your competitors unpleasant position.

And also by offering vacation and 4-days workweek, you give your employees time to relax in order to perform at their maximum when they're back to work, which means high quality work, which means great results. Meanwhile on the other hand, stressing the shit out of your employees by overtime and 5-days/40-hours worlweek or even more will probably lead to low quality work, which leads to bad results, which will unsatisfy your customers, your employees, and you

 

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