From Entrepreneur to Employee: A Step Back To Move Ahead

In this edition of Founder FAQ, Shelley Bosworth, a business mindset coach, answers: “As a founder, is going back to being an employee ever the right move?"

Setting up a business in the GCC is seemingly straightforward, especially in the UAE, where entrepreneurship is actively encouraged. With fewer bureaucratic barriers, almost no taxes, and an amazing can-do spirit, it’s easy to see why so many take the plunge.

Impressive figures back this up—for example, as of 2024, the UAE had 5,600 tech startups, while neighboring Saudi Arabia had 1,600 and is rapidly emerging as a new entrepreneurial hub.

But does that mean running your business in this region is easy? Far from it.

The first few years can be relentless—financial strain, unpredictable cash flow, and a demanding workload all take a toll. Founders also often pour their savings into their ventures, dealing with personal stress and sleepless nights while fueling growth.

In fact, increasingly, I’m seeing more startup founders returning to employment— whether to supplement their income, reassess their business strategy, or step away entirely when their idea is no longer viable.

Why More Entrepreneurs Are Stepping Back

The business boom after the COVID-19 pandemic sparked a wave of entrepreneurship, particularly online. The GCC’s e-commerce sector grew 33% annually from 2019 to 2022, according to analysts at online marketing agency Istizada—nearly double the global rate.

But now, competition is fierce, costs are rising, and profitability is harder to achieve—especially for solo founders.

Running a business might offer flexibility, but it demands grit, long hours, and constant adaptation. And it’s leading a wave of startup founders back into the workplace.

This situation reminds me of “The Emotional Cycle of Change,” a framework developed by Don Kelley and Daryl Conner that outlines the five emotional stages of navigating upheaval. Entrepreneurs often start with uninformed optimism, then hit informed pessimism as challenges mount.

The toughest phase, the valley of despair, is where many feel overwhelmed and question whether to continue. Those who push through reach informed optimism, where progress becomes tangible, leading to success and fulfillment.

Understanding this cycle can help founders (and anyone else) navigate tough decisions with clarity.

Shelley Bosworth, a business mindset coach.

What The Transition From Founder To Employee Looks Like 

Every founder has their own reason for returning to employment. Some juggle a job alongside their business to gain financial stability, while others use employment as a reset button to rethink their approach.

And some decide to close their business entirely, a trend I’ve seen more frequently in product-based startups, where rising costs and shrinking margins make sustainability a challenge.

Let’s be clear, stepping back does not mean failure—it often marks the start of a new chapter, whether it’s a refined entrepreneurial strategy or a fresh career direction.

Want proof?

Reid Hoffman’s first startup, SocialNet, struggled to gain traction, leading him to join PayPal, where he helped scale the company and built connections that later enabled him to be a co-founder of LinkedIn, the world’s largest professional networking platform.

Similarly, Evan Williams faced failure with Odeo, a podcasting startup that became obsolete due to Apple’s iTunes. Instead of giving up, he pivoted, leading to the creation of Twitter, which transformed real-time communication globally. Both prove that setbacks— with the right attitude—can pave the way for greater success.

Why It’s So Hard To Return To Employment

For many founders, a business is more than just work—it’s their identity, independence, and dream. Stepping away, even temporarily, can bring up feelings of genuine grief, as if they’re letting part of themselves die—dramatic as it might sound.

Then, there’s the fear of judgment—especially from those who never understood the vision in the first place. The pressure to maintain appearances can be overwhelming, and it’s easy to convince ourselves that everyone else is succeeding.

But the truth is, entrepreneurship is rarely as straightforward or linear as we might assume, and we need to acknowledge this.

Is Employment The Right Move?

If you’re asking the question, something already doesn’t feel right, and it’s always worth examining your motivations and situation very closely before doing anything rash.

Entrepreneurship comes with highs and lows, but when the stress consistently outweighs the joy, money worries keep you up at night, and your business starts feeling more like a burden than a purpose, it might be time to reassess.

Let’s be clear, stepping into employment doesn’t mean giving up on your business.

It can be a strategic move to create stability and gain clarity for the future. A steady income removes a huge amount of financial pressure, allowing you to breathe, reflect, and plan your next steps without the constant weight of uncertainty.

Sometimes, the space that employment provides is exactly what’s needed to refine your vision, explore new opportunities, or even reignite the entrepreneurial spark under different circumstances.

Whether it’s a temporary move or a fresh start, employment can be a valuable tool for resetting, learning, and moving forward in a way that works for you.

The upside: you might discover opportunities you’d never considered I love this quote from Richard Branson, founder of the UK-based Virgin Group: “Business opportunities are like buses, there’s always another one coming.”

Returning to a traditional job after running a business can feel like a step backward, but in many cases, it’s a strategic reset that opens unexpected doors. Stepping into a structured environment allows entrepreneurs to see their previous challenges through a fresh lens, often uncovering new solutions they hadn’t considered before.

There’s also the power of networking—working in a new industry or role brings exposure to new ideas, markets, and connections, some of which may lead to fresh entrepreneurial opportunities.

Several founders I have coached pivoted their business models or launched new ventures based on insights gained from a corporate role.

Additionally, returning to employment offers a chance to hone new skills that can make a future business more successful. Whether it’s monetary management, leadership, or operational efficiency, these experiences can make an entrepreneur even stronger and more adaptable when they decide to build again. As with everything, mindset and perspective are key.

This article first appeared in the June 2025 issue of Inc. Arabia magazine. To read the full issue online, click here.