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Open Access
Article
Publication date: 22 May 2023

Marifa Muchemwa and Clifford Odimegwu

In a country that is marred by an excessively high unemployment rate, there is a need for policymakers to prioritise entrepreneurship in South Africa. The study aims to explore…

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Abstract

Purpose

In a country that is marred by an excessively high unemployment rate, there is a need for policymakers to prioritise entrepreneurship in South Africa. The study aims to explore the determinants of self-employment among the youth in South Africa and in the process answer the following question: Who are the self-employed youths in South Africa?

Design/methodology/approach

Different potential predictors of self-employment empirically used in the literature were used in this study. A probit regression model was used with the binary self-employment variable as the dependent variable and a host of independent variables. A nationally representative survey consisting of youths was used in the analysis.

Findings

The findings show that financial literacy increases the odds of being self-employed. Secondly, the odds of being self-employed increase with age as mature people are expected to have gathered enough networks and wisdom over the years. Thirdly, being male decreases the odds of being self-employed. When it comes to education, the only category that statistically increases the odds of being self-employed compared with no schooling is the tertiary level of education. The other educational levels are all statistically insignificant. From a policy perspective, the government should promote self-employment by investing in financial literacy as well as increasing access to tertiary education among disadvantaged groups.

Originality/value

The study is one of the first, to the best of the authors’ knowledge, to examine the characteristics of the self-employed using a nationally representative survey in South Africa.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Open Access
Article
Publication date: 1 March 2023

Chiara Natalie Focacci and François Pichault

According to Sen's theoretical framework of capability (1985), individuals reach their full potential once they have the freedom, intended as the set of functionings at their…

1092

Abstract

Purpose

According to Sen's theoretical framework of capability (1985), individuals reach their full potential once they have the freedom, intended as the set of functionings at their disposal, to do so. However, many critiques have been developed against the lack of embeddedness of the capability approach in social and political relations and structures. In this article, the authors investigate the influence of three institutional contexts (Belgium, the Netherlands and France) on the respective work-related functionings of self-employed and regular workers, with a focus on human capital investment and institutional support offered to them.

Design/methodology/approach

Data from the European Working Conditions Survey (EWCS) are used to highlight similarities and differences in building work-related functionings for regular and self-employed workers. A regression analysis is provided at the country level.

Findings

In the three labour markets, the authors find that the building of work-related functionings is more successful for regular employees, especially as regards institutional support. Self-employed workers, on the other hand, need to rely on their individual capability as regards employment protection and human capital investment. However, the authors find interesting differences between the three institutional contexts. In both Belgium and France, self-employed workers are subject to higher instability in terms of changes in salary and hours worked, whereas atypical work is better positioned in the Dutch labour market. The Netherlands is also characterised by a less significant gap between regular and self-employed workers with respect to participation in training.

Originality/value

In this article, the authors contextualise Sen's (1985) theoretical framework by taking into account the institutional differences of labour markets. In particular, the authors provide a novel application of his capability approach to regular and self-employed workers in an economically relevant European area.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 7 February 2023

Ondřej Dvouletý and Dagmara Nikulin

This study focusses on dependent self-employment, which covers a situation where a person works for the same employer as a typical worker whilst on a self-employment contractual…

Abstract

Purpose

This study focusses on dependent self-employment, which covers a situation where a person works for the same employer as a typical worker whilst on a self-employment contractual basis, i.e. without a traditional employment contract and without certain rights granted to “regular” employees.

Design/methodology/approach

The research exploits the individual-level dataset of 35 European countries extracted from the 2017 edition of the European Labour Force Survey (EU LFS) and compares the characteristics of employees and dependent self-employed individuals. Methodologically, the study relies on the estimation of a multivariate logistic regression model.

Findings

The main hypothesis assuming that dependent self-employed work most often in low-skilled occupations was empirically supported. There was also a non-linear (u-shaped) relationship between the years of accumulated experience (with a turning point at 35 years) and the likelihood of being dependent self-employed. Other results showed that dependent self-employed are less likely to be women and the dependent self-employed are more likely born outside of the countries where the dependent self-employed participate in the labour markets.

Originality/value

The study contributes to the field by adopting a comparable definition of dependent self-employment and exploiting the recent theoretical support of The Work Precarity Framework. The phenomenon should still be addressed by policymakers and labour office representatives, aiming to protect, primarily, vulnerable lower-skilled workers. The ongoing research should study the longitudinal dimension of dependent self-employment with a focus on motivational aspects.

Details

Employee Relations: The International Journal, vol. 45 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 29 April 2021

Sjanne Marie Elyse van den Groenendaal, Silvia Rossetti, Mattis van den Bergh, T.A.M. (Dorien) Kooij and Rob. F. Poell

As the current “one size fits all” research approach is likely to be ineffective in identifying the conditions that promote the entrepreneurial career of the solo self-employed

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Abstract

Purpose

As the current “one size fits all” research approach is likely to be ineffective in identifying the conditions that promote the entrepreneurial career of the solo self-employed, this paper advances the current understanding of the heterogeneity among the solo self-employed.

Design/methodology/approach

A person-centered approach is used to identify groups among the solo self-employed based on their starting motives and to examine their engagement in proactive career behaviors.

Findings

Using Latent Class Analysis (LCA), six groups displaying distinct motivational profiles are identified: (1) the pushed by necessity, (2) entrepreneurs by heart, (3) control-seekers, (4) occupationally-driven, (5) challenge-seekers and (6) the family business-driven. In line with the argument that starting motives affect behavior because they reflect the future work selves that individuals aim for, results show that solo self-employed with distinct motivational profiles differ in their engagement in proactive career behaviors. For future research, it is recommended to examine the role of demographic characteristics in the engagement in proactive career behaviors.

Originality/value

Although starting motives among self-employed people have been studied frequently, this research applies an innovative methodological approach by using LCA. Hereby, a potentially more advanced configuration of starting motives is explored. Additionally, this study applies a career perspective towards the domain of solo self-employment by exploring how solo self-employed with distinct motivational profiles differ in terms of managing their entrepreneurial careers.

Details

Career Development International, vol. 26 no. 2
Type: Research Article
ISSN: 1362-0436

Keywords

Open Access
Article
Publication date: 17 August 2020

Dieuwke Zwier, Marleen Damman and Swenne G. Van den Heuvel

Previous research has shown that self-employed workers are more likely than employees to retire late or to be uncertain about retirement timing. However, little is known about the…

1964

Abstract

Purpose

Previous research has shown that self-employed workers are more likely than employees to retire late or to be uncertain about retirement timing. However, little is known about the underlying mechanisms. This study aims to fill this gap, by focusing on the explanatory role of various job characteristics – flexibility, autonomy, skills-job match and job security – for explaining differences in retirement preferences between the solo self-employed and employees.

Design/methodology/approach

Data were used of 8,325 employees and 663 solo self-employed respondents (age 45–64) in the Netherlands, who participated in 2016 in the Study on Transitions in Employment, Ability, and Motivation (STREAM). The outcome variable distinguished between early, on-time, late and uncertain retirement preferences. Multinomial logistic regression models were estimated, and mediation was tested using the Karlson-Holm-Breen (KHB) method.

Findings

The solo self-employed are more likely than employees to prefer late retirement (vs “on-time”) and to be uncertain about their preferred retirement age. Job characteristics mediate 21% of the relationship between solo self-employment and late retirement preferences: the self-employed experience more possibilities than employees to work from home and to choose their own working times, which partly explains why they prefer to retire late.

Originality/value

In discussions about retirement, often reference is made to differences in retirement savings and retirement regulations between the solo self-employed and employees. The current study shows that differences in job characteristics also partly explain the relatively late preferred retirement timing of solo self-employed workers.

Details

International Journal of Manpower, vol. 42 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 24 May 2022

Jessie Gevaert, Christophe Vanroelen, Lara Stas and Deborah De Moortel

The ideal-typical entrepreneur presents him/herself in the neoliberal iconography as an autonomous and pro-active individual who is highly engaged with his/her vocation…

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Abstract

Purpose

The ideal-typical entrepreneur presents him/herself in the neoliberal iconography as an autonomous and pro-active individual who is highly engaged with his/her vocation. Nevertheless, empirical research on the actual work engagement of the self-employed is scarce. In addition, phenomena like “necessity self-employment” and “economically dependent self-employment” raise concerns about the potential eudaimonic well-being outcomes of these self-employed. In this study, it was therefore investigated to what extent necessity self-employment and economically dependent self-employment are associated to work engagement and whether this relation is mediated by intrinsic job resources.

Design/methodology/approach

The authors used data from the 2015 European Working Conditions Survey (EWCS) involving 5,463 solo self-employed participants. For analyzing the data, structural equation modeling (SEM) with the Lavaan package was used.

Findings

Both necessity self-employment and economically dependent self-employment were linked to poor work engagement, however, intrinsic job resources mediated both effects.

Originality/value

While previous studies have shown differences in hedonic well-being between opportunity/necessity entrepreneurs, and economically (in)dependent entrepreneurs, this study considers their distinct profiles regarding eudaimonic well-being. Eudaimonic well-being was deemed particularly relevant because of its implications for other outcomes such as life satisfaction, psychological well-being, ill-health, business performance and persistence in self-employment.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 9
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 26 May 2020

Paul Jonker-Hoffrén

The purpose of this article is to study what platform-related user factors influence the employment potential of a lean platform for self-employed professionals.

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Abstract

Purpose

The purpose of this article is to study what platform-related user factors influence the employment potential of a lean platform for self-employed professionals.

Design/methodology/approach

The article employs the system data of a Dutch platform firm, which include consumers looking for painters (N = 17,224) and self-employed painters (N = 1,752) who pursue client acquisition by submitting proposals (N = 101,974). This data is analysed using non-parametric tests.

Findings

Study of this platform shows that the platform functions as a channel of acquisition for self-employed professionals. This lean platform enables matching of information of supply and demand, thereby facilitating processes of acquisition. The number of competitors, distance to a potential job and non-standard proposals are statistically significant factors that influence whether a consumer is interested in a proposal. Effect sizes are very small.

Research limitations/implications

This platform is a two-way market for information about service jobs, which excludes a price setting mechanism. The findings of this study cannot be generalized to other forms of platforms.

Practical implications

The market for service professionals is very local; therefore, the platform firm may alter the algorithm to accommodate this. Self-employed professionals should approach using the platform in the same way as normal forms of acquisition.

Social implications

This particular type of two-sided market is an extension of regular forms of acquisition by creating “weak ties” through the platform.

Originality/value

The article uses a unique data set to study the impact and limitations of digitalization of the (labour) market for service professionals.

Details

International Journal of Manpower, vol. 42 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 5 April 2024

Lidia Kritskaya Lindelid and Sujith Nair

Wage employees enter self-employment either directly or in a staged manner and may subsequently undertake multiple stints at self-employment. Extant research on the relationship…

Abstract

Purpose

Wage employees enter self-employment either directly or in a staged manner and may subsequently undertake multiple stints at self-employment. Extant research on the relationship between entry modes and the persistence and outcomes of self-employment is inconclusive. This study investigates the relationship between wage employees’ initial mode of entry into self-employment and the duration of the subsequent first two stints of self-employment.

Design/methodology/approach

This study used a matched longitudinal sample of 9,550 employees who became majority owners of incorporated firms from 2005 to 2016.

Findings

The findings demonstrate that the initial mode of entry into self-employment matters for the first two stints at self-employment. Staged entry into self-employment was associated with a shorter first stint and became insignificant for the second stint. Staged entry into self-employment was positively related to the odds of becoming self-employed for the second time in the same firm.

Originality/value

Using a comprehensive and reliable dataset, the paper shifts focus from the aggregated onward journey of novice entrepreneurs (survival as the outcome) to the duration of their self-employment stints. By doing so, the paper offers insights into the process of becoming self-employed and the patterns associated with success/failure in entrepreneurship associated with self-employment duration.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 11
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 6 December 2019

Tinka van Vuuren, Jeroen P. de Jong and Peter G.W. Smulders

The purpose of this paper is to test the relationship between subjective job insecurity and self-rated job performance, and to assess how this association is different across…

4260

Abstract

Purpose

The purpose of this paper is to test the relationship between subjective job insecurity and self-rated job performance, and to assess how this association is different across different employment groups.

Design/methodology/approach

The authors used a data set owned by TNO and Statistics Netherlands of more than 89,000 Dutch workers and self-employed that is a representative sample of the Dutch workforce. The authors included data from 2014 and 2016 assessing subjective job insecurity in terms of “a concern about the future of one’s job/business” and self-rated job performance.

Findings

The effect size of the association between subjective job insecurity and self-rated job performance is small. For temporary agency workers and on-call workers, the association between subjective job insecurity and job performance is weaker compared to permanent workers and fixed-term workers. However for self-employed workers with and without employees, however, the relation between subjective job insecurity and job performance is stronger compared to permanent workers.

Research limitations/implications

The biggest limitation is the cross-sectional design of the study, which limits conclusions about causality.

Practical implications

The finding that subjective job insecurity goes together with less work performance shows that job insecurity has no upside for the productivity of companies.

Originality/value

The study provides a deeper understanding of the relationship between subjective job insecurity and self-rated job performance on a national level.

Details

Career Development International, vol. 25 no. 3
Type: Research Article
ISSN: 1362-0436

Keywords

Open Access
Article
Publication date: 23 November 2021

Xuguang Guo, Wei Chen and Denis Iurchenko

This study examines the impact of college education on incorporated and unincorporated self-employments. It specifically compares the effects on African Americans and Hispanics…

1151

Abstract

Purpose

This study examines the impact of college education on incorporated and unincorporated self-employments. It specifically compares the effects on African Americans and Hispanics with the effects on Whites.

Design/methodology/approach

The study sample was drawn from the US Current Population Survey between 1989 and 2018. Based on a sample size of 1,657,043 individuals, this study employed logit regression models to test the hypotheses. Racial variations were examined using African Americans and Hispanics as moderators.

Findings

The results suggest that college education increases incorporated self-employment and reduces unincorporated self-employment. The impact of college education on incorporated self-employment is stronger for African Americans and Hispanics than for Whites. In contrast, its effect on unincorporated self-employment is stronger for Whites than for African Americans and Hispanics.

Research limitations/implications

The findings provide empirical evidence of how college experience changes the motivation of starting an incorporated or unincorporated business. The results suggest that college education impacts African Americans and Hispanics differently than Whites in pursuing their career path of entrepreneurship.

Originality/value

It is the first study that examines the relationship between college education and incorporated/unincorporated self-employment. It also sheds light on radical variations.

Details

New England Journal of Entrepreneurship, vol. 25 no. 1
Type: Research Article
ISSN: 2574-8904

Keywords

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