As job security becomes harder to count on, more professionals are turning to entrepreneurship. In June alone, more than 531,000 business applications were filed, according to the U.S. Census Bureau. Only a fraction are projected to become employer businesses within four quarters, but the volume still shows how many people are exploring ways to generate income outside a traditional job.

For experienced professionals, entrepreneurship may look like consulting, freelance work, coaching, advisory services or a small business built around skills they already have. These paths can generate additional income while giving workers something they may be missing: optionality.

Optionality means having more than one path available when circumstances change. Here are the forces driving more workers toward entrepreneurship and why that shift is changing how people think about job security.

Business Formation Remains High

Business formation remains well above pre-pandemic levels, suggesting the surge was not a temporary response to the disruption of 2020. The Census data also reveals a wide gap between filing an application and building an operating business with employees.

A business application signals intent. It shows that someone is taking a formal step toward creating a company, even though it does not prove the business has opened, generated revenue or become sustainable. Many people may remain solo operators, build slowly or decide the idea is not viable.

Entrepreneurship can begin as an experiment rather than a full career exit. The early goal is often to test whether your expertise can solve a problem people will pay for.........

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