Consumers Using Layoffs As A New Start

A recent study by Hiscox showed approximately 15 percent of small businesses stemmed from the owner being laid off.

Approximately 80 percent of business owners said they took the opportunity of opening a firm not to create a new idea or product, but to instead improve items that already existed. Close to one quarter of consumers thought their idea was very lucrative, and of those business owners, nearly 70 percent think they achieved their goal.

"Whether it's due to a layoff, or to pursue a life's passion, entrepreneurs are starting businesses to take control of their own destiny," said Kevin Kerridge, small business insurance expert from Hiscox. "Also, they don't need to invent the next new hot idea, but need to put in hard work and provide higher quality service than the competition to succeed."

Consumers who lose their jobs and decide to create a small business may want to watch their amount of credit card debt. Opening a business can be expensive, and without much income in an organization's infancy, it may be important to make sure minimum payments are met.