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Poverty Among Self-Employed Businesspeople In A Rich Country: A Misunderstood And Distinct Reality

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  • JOHAN LAMBRECHT

    (Research Centre for Entrepreneurship, EHSAL–K.U. BRUSSEL, Stormstraat 2, 1000 Brussels, Belgium)

  • ELLEN BEENS

    (Research Centre for Entrepreneurship, EHSAL–K.U. BRUSSEL, Stormstraat 2, 1000 Brussels, Belgium)

Abstract

This article studies poverty among self-employed businesspeople in a rich country, Belgium. Existing research on self-employment income, compared with income of employees, has made clear that self-employed have a higher probability of falling in the lowest income groups and that there is a distinct self-employment effect. Our findings for Belgium show that approximately one quarter of those who are self-employed in their main occupation are living below the poverty line. We also confirm findings reported in the literature that income distribution among self-employed people is very unequal. It appears from our qualitative findings that poverty among self-employed businesspeople is something distinct from other forms of poverty. Several factors can cause self-employed businesspeople to end up in poverty. As a result, poverty is a multifaceted problem. Policy recommendations are formulated to prevent and combat poverty among self-employed businesspeople.

Suggested Citation

  • Johan Lambrecht & Ellen Beens, 2005. "Poverty Among Self-Employed Businesspeople In A Rich Country: A Misunderstood And Distinct Reality," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 205-222.
    • Handle: RePEc:wsi:jdexxx:v:10:y:2005:i:03:n:s1084946705000173
    DOI: 10.1142/S1084946705000173
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    References listed on IDEAS

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    1. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
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    Cited by:

    1. Kent Eliasson & Hans Westlund, 2013. "Attributes influencing self-employment propensity in urban and rural Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 479-514, April.

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