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The Importance of Housing for Self-employment

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  • Darja Reuschke

Abstract

This article demonstrates that housing influences decisions to start businesses or become self-employed. Housing characteristics can facilitate or hinder business start-ups, and the mechanisms depend on whether the business start-up takes place in people’s homes or not. Hitherto, economic geography has largely viewed housing as a system that accommodates and filters the workforce across space and neglected that housing is an economic resource to individuals. Using longitudinal microdata for the United Kingdom and a sample that accounts for the endogeneity of housing to employment/entrepreneurship, the study finds that home-based self-employment is facilitated by housing wealth, outright ownership, detached houses, and large dwellings and is undermined by living in flats. Private rented accommodation enables entries into self-employment that are not based in people’s homes. Housing thus provides financial security and space, on the one hand, and shapes flexibility needed for entrepreneurship, on the other hand. Areas for future research arising from this study relate to the role of housing over the individual entrepreneur’s life course and area effects on entrepreneurship and self-employment that relate to the spatial variation of housing supply.

Suggested Citation

  • Darja Reuschke, 2016. "The Importance of Housing for Self-employment," Economic Geography, Taylor & Francis Journals, vol. 92(4), pages 378-400, October.
    • Handle: RePEc:taf:recgxx:v:92:y:2016:i:4:p:378-400
    DOI: 10.1080/00130095.2016.1178568
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    Citations

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    Cited by:

    1. Jie Chen & Mingzhi Hu, 2019. "What types of homeowners are more likely to be entrepreneurs? The evidence from China," Small Business Economics, Springer, vol. 52(3), pages 633-649, March.
    2. Merkel, Janet & Suwala, Lech, 2021. "Intermediaries, work and creativity in creative and innovative sectors. The case of Berlin," EconStor Open Access Book Chapters, in: Culture, Creativity and Economy. Collaborative practices, value creation and spaces of creativity., pages 56-69, ZBW - Leibniz Information Centre for Economics.
    3. Dayong Zhang & Qiang Ji & Wan-Li Zhao & Nicholas J Horsewood, 2021. "Regional housing price dependency in the UK: A dynamic network approach," Urban Studies, Urban Studies Journal Limited, vol. 58(5), pages 1014-1031, April.
    4. He Yang & Changan Li & Zhaoxing Sun, 2023. "The Impact Mechanism of Work Experience on the Income of Flexible Workers: Evidence from China," Sustainability, MDPI, vol. 15(23), pages 1-22, November.
    5. Szumilo, Nikodem & Vanino, Enrico, 2021. "Mortgage affordability and entrepreneurship: Evidence from spatial discontinuity in Help-to-Buy equity loans," Journal of Business Venturing, Elsevier, vol. 36(4).
    6. Jae Teuk Chin, 2020. "Location Choice of New Business Establishments: Understanding the Local Context and Neighborhood Conditions in the United States," Sustainability, MDPI, vol. 12(2), pages 1-17, January.
    7. Nam Kyoon N. Kim & Simon C. Parker, 0. "Entrepreneurial homeworkers," Small Business Economics, Springer, vol. 0, pages 1-25.
    8. Sarah L Holloway & Helena Pimlott-Wilson, 2021. "Solo self-employment, entrepreneurial subjectivity and the security–precarity continuum: Evidence from private tutors in the supplementary education industry," Environment and Planning A, , vol. 53(6), pages 1547-1564, September.
    9. Mark J. Holmes & Jesús Otero, 2022. "The wage curve within and across regions: new insights from a pairwise view of US states," Empirical Economics, Springer, vol. 62(5), pages 2069-2089, May.
    10. Nam Kyoon N. Kim & Simon C. Parker, 2021. "Entrepreneurial homeworkers," Small Business Economics, Springer, vol. 57(3), pages 1427-1451, October.

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