BBC News – Self-employed make up two-thirds of new jobs, ONS says

self employedInteresting research suggests that self-employment has become a very popular option since the financial crisis.

BBC News – Self-employed make up two-thirds of new jobs, ONS says.

While financial downturns can create a stampede to self-employment and the rise of micro businesses as those retrenched still seek to eke a living and to support their families, other more popular reasons that people start their own business include:

  •  To create something new
  •  To control my own life
  • To make money
  •  To be my own boss
  • To prove I could do it
  • Frustration in  employment experiences
  • Other

Other academic research has indicated that self-employment that transitions into entrepreneurial enterprises can have significant impact on the health and wealth of an economy  and contribute significantly to job creation.

  • Entrepreneurs and small business are driving the economy.
  • About 50 per cent of private workforce employed in small business.
  •  This 50 per cent generates more than 50 per cent of the nation’s GDP.
  • Also generates about 55 per cent of the innovations.

Job creation

o   Large firms downsize, small firms grow

  •  Organisational innovation

o   -New product or service, including the way the product is delivered or the way it is made

  • Diversity

o   Women not blocked (as in traditional large enterprise) in smaller, entrepreneurial firms

o   Ethnic Minorities that often face barriers in gaining mainstream employment are choosing self-employment as their vehicle to wealth creation.