There was a surge in business start-up activity among jobless managers and executives in 2009.

According to a report by Challenger, Gray & Christmas Inc., start-up activity reached a four-year high, fueled mostly by a sharp increase during the second half of 2009 that many are hopeful will carry into 2010.

“The combination of the improving economy and stagnant job market may have contributed to the surge in start-up activity among job seekers over the summer,” John Challenger, CEO of Challenger, Gray & Christmas, said in a press release.

The percentage of unemployed workers who started their own businesses rose to an average of 8.6 percent in 2009, a 69 percent increase from 2008 when the start-up rate was 5.1 percent – the lowest annual average in the history of the report.

During the third quarter, 11.8 percent of job seekers started their own firms, which was the highest quarterly rate since the second quarter of 2005.



“Rather than endure several more months of unemployment, as employers slowly move toward renewed hiring, many job seekers are opting to exit the labor pool and start their own firms,” Challenger said. “The start-up rate might have been even higher if banks had loosened their lending standards.”

According to the survey, 88 percent of job seekers starting a business in the second half of 2009 were over the age of 40. That figure was up from 72 percent during the first half.

“Entrepreneurship used to be thought of as a young person’s endeavor, as it requires a significant amount of energy and drive. The myth that older entrepreneurs lack these qualities has long been shattered,” Challenger said. “In fact, seasoned professionals have a decided advantage over their younger counterparts. They not only have the energy required for entrepreneurship, they have the experience, communication and technology skills and a strong network of business connections.”