More professionals are using entrepreneurship to build income and create greater career security.gettyAs 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 HighBusiness 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. That process introduces financial risk, while also creating the possibility of another income stream and less dependence on one employer.A Slower Hiring Market Is Changing The Risk CalculationThe labor market can look healthy on the surface while still being difficult for people trying to find work. According to the Budget Lab at Yale, unemployed workers were spending nearly 26 weeks out of work in early 2026, up from fewer than 20 weeks in early 2023. The share of unemployed workers finding a job the following month had also fallen from almost 30% in 2022 to about 24%.That changes the risk of relying on one employer. A layoff can leave you without income for months, even when the unemployment rate remains relatively low. Building another source of revenue can give you more time to find the right opportunity instead of feeling pressured to accept the first job offer that comes along.Economic Uncertainty Is Shaping Why People Start BusinessesEconomic pressure is influencing the reasons people turn to entrepreneurship. The Global Entrepreneurship Monitor tracks several common motivations, including building wealth, continuing a family tradition, making a difference and earning a living because jobs are scarce. In 2025, earning income remained one of the strongest drivers across many countries. That helps explain why entrepreneurship is showing up in more career conversations. Some people are starting businesses after a layoff. Others are responding to stagnant pay, limited job openings or the fear that their role may disappear.Starting from a place of financial urgency can make the early stages harder. Limited savings may push you toward low-cost services or quick decisions before you have tested demand. That pressure can shape the type of business you start and how much time you have to make it viable.AI Is Making Entrepreneurship More AccessibleAI is lowering some of the costs of starting a business. One person can now handle research, marketing, scheduling and administrative work with fewer resources.Small businesses are adopting these tools quickly. In testimony before the House Small Business Committee, Jordan Crenshaw of the U.S. Chamber of Commerce said 58% of small firms used generative AI in 2025, up from 40% in 2024 and 23% in 2023. He called AI “a force multiplier that helps small businesses do more with limited time, staff and resources.”SHRM’s latest research report also found that 21% of U.S. wage and salary employment is already at least 50% performed using AI tools, while about 7.9 million jobs face a high risk of displacement. Workers can use the same tools to generate income from their skills, judgment and professional relationships.Start Building A Business While You Have A PaycheckA side hustle lets you test a business idea while you still have a paycheck. A limited offer, a small number of clients or a short-term project can help you learn what people will pay for and how much time the work requires.Starting gradually also gives you room to make adjustments. You may discover that the idea needs a different audience, a stronger offer or a higher price. Those lessons are easier to learn before you need the business to cover your living expenses.For experienced professionals, the first step may be as simple as packaging one area of expertise into a service and testing it with a real customer. That gives you evidence of demand, some income and greater confidence while you keep your current job.Multiple Income Sources Can Strengthen Career SecurityA second income stream can change how you respond to uncertainty at work. Even modest revenue from a business may help cover some expenses, extend your financial runway or give you more time to make a career change.It can also strengthen your position before a crisis hits. You learn how to find clients, price your work, explain your value and generate income independently of your employer. Those skills stay with you whether you keep the business small or decide to grow it. When one employer no longer controls your entire income, a layoff or reorganization has less power over your future.Entrepreneurship Is Changing The Meaning Of Job SecurityWhen your entire income depends on one employer, one decision can disrupt everything. A restructuring, budget cut or leadership change can quickly undo years of strong performance.Building income outside your job gives you more room to respond. It can help you absorb a setback, take longer to evaluate your options and avoid making a career decision from a place of panic.You may never leave traditional employment. But creating another source of income can reduce the power any one employer has over your future.Join 10,000+ professionals who subscribe to the free Corporate Escape Artist newsletter for practical guidance on layoffs, toxic bosses, job searches, career transitions and AI at work.