What is Defensive Entrepreneurship?

Calendar February 8, 2010 | Posted by DDFD

Defensive Entrepreneurship is starting a business or businesses as a hedge against job loss or other financial setback. In the current economic environment, many people would be well served by defensive entrepreneurial activities.  Unfortunately, to reap the benefits or help, they needed to start these businesses a year or two ago.

These “spare time” ventures are usually conducted at night (“moonlighting”) or on weekends. They are sideline businesses that provide extra cash in good times that supplements your full time gig.  However, they can provide stop gap help in tight spots in the event of a job loss.  This happened to me a few years ago– I had a sideline business that I did full time as I looked for a new job after a layoff.

I have run sideline businesses for years– mostly part time, sometimes full time. I have had several consulting businesses, and education and training business, and a contracting business to name just a few.  I am also looking for sideline businesses that spin off passive income and create income producing assets.

What type of business?  That’s up to you.  You might have:

  • A skill that you can develop or exploit (maybe you are a talented carpenter).
  • A talent that can be marketed (music instruction or photography).
  • A sideline franchise business (I once worked with a guy who had a Mister Softee ice cream truck).
  • A project oriented gig (seasonal contracting).
  • A consulting business (I have done part time consulting work for small businesses).


Defensive Entrepreneurship is not a term I coined, but rather one that I embraced a long time ago.

I have read the Wall Street Journal for over 25 years, and in the early 1990′s I read an article that I really identified with. It was about people who were employees at companies and were also side line entrepreneurs– moonlighters if you will.  The article went on to describe these “Defensive Entrepreneurs” and I never forgot it– it described me.  I am looking for the original article and will share it when I find it.

On my site, I present, suggest, discuss, and share dozens of ideas for defensive entrepreneurs. For example, I have met a state road department employee who had an upholstery business run in the evening and on weekends.  Most computer and IT professionals I have met, ran sideline consulting businesses.  There are more people acting as defensive entrepreneurs than you might imagine.

Once you get defensive entrepreneurship down, you may want to try Multipreneuring (I will expand on this in an upcoming post) . . . Think several businesses– not everything succeeds.

One final thought (Warning): Avoid any conflicts of interest with your employer, you may need permission. My view is to keep quiet and a low profile.


This post originally appeared on Defensive Entrepreneurship, here is the link to the original post, What is Defensive Entrepreneurship?
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DDFD believes that self reliance and self sufficiency are the roads to individual freedom.  He is dedicated to living a quality life through Frugality, personal growth, development, and productivity, and Defensive Entrepreneurship.  On weekends, he can be found in front of the BBQ grill.

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