A joint study performed by Erasmus University, University of Vienna, and Munich School of Management, shows that employees who leave their jobs with regular pay to start a business have a higher risk of not being able to resume their employee status if their business venture became unsuccessful.
The researchers found, the self-employed entrepreneurs have a lower chance to receive interview opportunities, and would not lose out to peers who have been going steady in their employed careers.
Regular wage employees receive 60 percent more acceptances than their self-employed counterparts, the study concluded.
"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," said researchers whose study will be presented at the annual meeting of the Academy of Management next month.
The two year long study experimented by sending resumes and cover letters to actual U.K. job advertisements.
Study authors concluded that entrepreneurial success requires some qualities that are not suitable for the work place. For example, an ex-entrepreneur might be more likely to take risks compared to the traditional employee, and thus might jeopardize the company's success if they fail.
