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The Entrepreneur ‘Penalty’

May 21, 2024
Korn Ferry
Summary
A new study reveals a significant "entrepreneurship penalty" in hiring practices, where recruiters are biased against former entrepreneurs despite the demand for innovation in companies. Researchers at Rutgers University found that 60% of recruiters had a negative view of resumes from candidates with entrepreneurial backgrounds. This aligns with earlier findings from the London Business School, which reported that former entrepreneurs are 35% less likely to get job interviews. Experts suggest this bias stems from concerns about cultural fit and adaptability to corporate structures. To leverage entrepreneurial talent effectively, companies should first assess their own readiness and cultural adaptability, and recruiters need to focus on the candidate's skills rather than traditional career markers.
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