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Small Businesses Take Advantage Of Layoffs

Written by Ken Gaebler
Published: 7/1/2009

The layoffs of big business means more quality employees for SMBs.

While some would say there is no silver lining to the current economic downturn there may indeed be good news for small businesses as they are able to nab top talent from big corporations that have gone into bankruptcy or been forced to lay off workers.

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The Wall Street Journal reports that small businesses like handbag maker Jack Rabbit Collection has been able to hire an executive from a larger rival company after being laid off. With that hire, the company has been able to cut its per-unit costs by 20 percent.

This is just one of a number of stories around the country of small businesses being able to take advantage of the misfortunes of other larger companies.

Although moving from a big corporation to a small business means a pay cut for most of these employees, some, like Suzanne Carella say the benefits of knowing everyone you work with and the opportunity for advancement is worth it.

"I cross paths with the president of marketing and the big guys," she told the paper. "At a larger company you might not even know their names."

In addition to meaning more quality talent for small businesses to hire, layoffs mean more small businesses across the country.

In an interview late last year with USA Today, Thomas Frey, a senior futurist at the DaVinci Institute, said, on average, 7 percent of the recently laid off workforce attempts to start their own business.

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