A recent study by the Rutgers School of Management and Labor Relations has uncovered a surprising hiring bias: entrepreneurial experience. In a blind resume review, the study found that recruiters were biased against hiring former business owners. Researchers concluded that most hiring teams were afraid of hiring someone who’s used to being their own boss.
This hiring bias is surprising when you consider the skills, expertise, and wisdom that come from starting a business — even if that business failed. Entrepreneurs who struggle to find work at traditional companies should consider an alternative: working for fellow entrepreneurs. Entrepreneurs hiring other entrepreneurs is a win-win for both parties — here’s why.
You’ll get insight from someone who’s been there, done that
Unfortunately, nearly 50% of new businesses fail within the first five years. When the odds are stacked against you, it’s helpful to have someone on your side who’s navigated the challenges of launching a business before.
“Your ultimate goal is to hire someone who you don’t have to constantly stand over and micromanage, and whose decisions you can trust,” wrote Forbes. “Bringing a former owner into your company can bring about vitality and wisdom; they understand the minutia of running a business along with the complexities.”
It’s helpful to have someone on your team who’s learned about entrepreneurship from the trenches. They bring real-world experience and connections that can otherwise take years to develop.
Entrepreneurs bring a unique perspective to problem-solving
Creativity and critical thinking are among the top personality traits successful entrepreneurs have in common. And, when entrepreneurs team up, that creativity can drive better brainstorming, smarter problem-solving, and more innovation.
“Traditionally-trained managers turn to the same prescribed methods when coming up with a strategy but former entrepreneurs are accustomed to thinking outside the box,” wrote Dave Anderson for Trakstar Hire. “If your company strives to be different than its competitors, adding leaders with entrepreneurial backgrounds could be just what it needs.”
When you work with a fellow entrepreneur, you will likely find someone with the enthusiasm for doing what it takes to make an idea come to life.
Entrepreneurs typically have a range of skills in different business areas
Often, new businesses simply need someone willing to put in the hours to take the idea to the next level before investing in traditional recruiting. Entrepreneurs and former small business owners have to wear many hats when they’re first starting out. Hiring an entrepreneur gives you access to someone with a breadth of skills in areas like accounting, inventory, HR, and finance. This knowledge can complement your own, or at least give you a baseline to work with while you look for someone with deeper expertise.
[Read more: Teen Founder of Beaux & Paws: ‘You Will Learn Something New Every Day’]
Entrepreneurs have similar risk tolerances
Entrepreneurs are comfortable with calculated risks and taking chances. Hiring a similarly entrepreneurial-minded person means they’ll likely be more receptive to new ideas and strategies for growth. They may also bring their own connections to manage this risk, such as mentors, investors, or other partners.
Entrepreneurs and small business owners are known for being passionate, driven individuals. When you work with a fellow entrepreneur, you will likely find someone with the enthusiasm for doing what it takes to make an idea come to life. Entrepreneurs are motivated individuals who don’t shy away from a challenge, which can be a big advantage to new businesses.
Entrepreneurs understand the value of relationship-building
Finally, entrepreneurs know that the right connections can help move mountains.
“Entrepreneurs are more likely to engage in activities related to their industry outside of normal work hours including networking online and offline,” said Sandra Tedford, CEO of WeTalkToday. “Those that excel at networking have a valuable network and connections to other business owners in their industry.”
When you need to find the right person to provide funding, help secure a permit, or host an event, a fellow entrepreneur might just know who to call.
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