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 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.
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
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.