Transitioning from Solo Self-Employed to Microbusiness Employer: Local Economic Environment or Owner Characteristics?

33 Pages Posted: 21 May 2019

See all articles by Andrew Henley

Andrew Henley

Cardiff Business School, Cardiff University; IZA Institute of Labor Economics

Abstract

Only a minority of micro-businesses create jobs for others. This paper addresses whether personal characteristics and resources of the microbusiness owner or the local external economic environment are drivers of job creation. In the UK context of significant growth in self-employment but a declining proportion who create jobs, an investigation using longitudinal data is provided. Individual demographic and resource characteristics are found to be more important, but place effects are relatively weak. Entrepreneurship policy needs to target particular groups, including women and less experienced business owners in their localities.

Keywords: self-employment, micro-business, job creation, local environment, longitudinal analysis

JEL Classification: J23, L26, M13, R12

Suggested Citation

Henley, Andrew, Transitioning from Solo Self-Employed to Microbusiness Employer: Local Economic Environment or Owner Characteristics?. Available at SSRN: https://ssrn.com/abstract=3390176 or http://dx.doi.org/10.2139/ssrn.3390176

Andrew Henley (Contact Author)

Cardiff Business School, Cardiff University ( email )

Aberconway Building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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