Why Entrepreneurship Pays Off—Even If You Fail

A recent study finds that striking out on your own isn't as financially risky as you might expect

Written by Murad Hemmadi

Startup founders, even ones who flame out, wind up with higher salaries when they re-join the salaried workforce, according to a recent paper from a researcher at the Haas School of Business at the University of California, Berkeley.

Over their lifetimes, study author associate professor Gustavo Manso found, entrepreneurs earn 10% more than their peers. And failed founders also land jobs faster, taking less of a financial risk while job-hunting.

“Would-be entrepreneurs may think they have a huge chance of failure and will be sacrificing earnings for the rest of their lives, but it’s not true,” Manso said in a statement. “Even if the business fails, entrepreneurs don’t suffer as much since they are able to quickly transition to the salaried workforce.”

So go out and start that business: Even if it doesn’t work out, you’ll likely be fine in the long run.


Originally appeared on PROFITguide.com