Do the unemployed become successful entrepreneurs?
Purpose - Many unemployed people become self-employed. Self-employment, however, does not necessarily lead to success. The main objective of the paper is to compare the economic outcome and success as self-employed between those who entered self-employment from paid employment, unemployment and inactivity. The question is if individuals who enter self-employment from a weak position on the labour market are equally successful as those who enter self-employment from a stronger position. Design/methodology/approach - Micro-econometric methods are used to estimate first the propensity to become self-employed in the period 1998-2002 among Swedish-born men aged 20-60 years who were unemployed, inactive or wage earners in 1998, and second, the economic outcome of self-employment. Economic outcome in 2002 is measured using income from self-employment and having employees in the firm. Findings - The study finds that the unemployed, and even more the inactive, are overrepresented among those who become self-employed. Those who were wage earners in 1998 have higher incomes and are also employing other people in their business to a much higher extent in 2002 than those who were unemployed or inactive in 1998. Practical implications - The results indicate that support for unemployed to become self-employed should be implemented with great care. The economic outcome of self-employment is inadequate for many who were unemployed earlier. Originality/value - The study will be valuable for those who are interested in those who become self-employed and in the economic outcome of self-employment for different groups.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 28 (2007)
Issue (Month): 7 (October)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/ijm.htm Email:
When requesting a correction, please mention this item's handle: RePEc:eme:ijmpps:v:28:y:2007:i:7:p:604-626. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.