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Using self-employment as proxy for entrepreneurship: some empirical caveats

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  • Carl Magnus Bjuggren
  • Dan Johansson
  • Mikael Stenkula

Abstract

Self-employment is the most frequently used measure of entrepreneurship. However, its definition varies between countries, which makes comparisons difficult. We present an analysis of Swedish self-employment data and show that even within one country, the depicted development differs greatly depending on the source used. Unlike previous claims in cross-country studies, we find that there is no basis for categorising Sweden as having increased its self-employment rate more than others. This demonstrates a need to carefully specify the characteristics of the data, and their advantages and disadvantages, before drawing conclusions about the frequency of entrepreneurship in different countries.

Suggested Citation

  • Carl Magnus Bjuggren & Dan Johansson & Mikael Stenkula, 2012. "Using self-employment as proxy for entrepreneurship: some empirical caveats," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 17(3), pages 290-303.
    • Handle: RePEc:ids:ijesbu:v:17:y:2012:i:3:p:290-303
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    1. André van Stel & Martin Carree, 2002. "Business ownership and sectoral growth," Scales Research Reports H200206, EIM Business and Policy Research.
    2. André van Stel, 2003. "COMPENDIA 2000.2: a harmonized data set of business ownership rates in 23 OECD countries," Scales Research Reports H200302, EIM Business and Policy Research.
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    4. Andre van Stel, "undated". "COMPENDIA: Harmonizing business ownership data across countries and over time," Papers on Entrepreneurship, Growth and Public Policy 2005-05, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    5. André van Stel, 2008. "The COMPENDIA Data Base: COMParative ENtrepreneurship Data for International Analysis," International Studies in Entrepreneurship, in: Emilio Congregado (ed.), Measuring Entrepreneurship, chapter 0, pages 65-84, Springer.
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    Cited by:

    1. Matthias O. Nkuda, 2020. "Entrepreneurship and Economic Diversification in Nigeria: The Moderating Influence of Enabling Environment on Global Satellite Mobile Village’s Experience," Journal of Contemporary Research in Business, Economics and Finance, Michael Laurence, vol. 3(1), pages 1-25.
    2. Cornelius A. Rietveld & Hans van Kippersluis & A. Roy Thurik, 2015. "Self‐Employment and Health: Barriers or Benefits?," Health Economics, John Wiley & Sons, Ltd., vol. 24(10), pages 1302-1313, October.
    3. Mesfin Mulu Ayalew & Shumet Amare Zeleke, 2018. "Modeling the impact of entrepreneurial attitude on self-employment intention among engineering students in Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-27, December.
    4. Marcus Box & Karl Gratzer & Xiang Lin, 2023. "Self-employment, corruption, and property rights: a comparative analysis of European and CEE economies," SN Business & Economics, Springer, vol. 3(1), pages 1-29, January.
    5. Soogwan Doh & Edmund J. Zolnik, 2012. "Social capital and entrepreneurship: an empirical analysis of the role of social capital in self-employment," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 7, pages 160-191, Edward Elgar Publishing.
    6. Rietveld, C.A. & Groenen, P.J.F. & Koellinger, Ph.D. & van der Loos, M.J.H.M. & Thurik, A.R., 2013. "Living Forever: Entrepreneurial Overconfidence at Older Ages," ERIM Report Series Research in Management ERS-2013-012-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Maria Teresa Marquez Lopez, 2023. "Active ageing in Europe: An analysis of the association between labour force participation and health," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 20, pages 1-38.
    8. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
    9. Nabil Al-Qadasi & Gongyi Zhang & Ibrahim Al-Jubari, 2021. "Attitude of youth towards self-employment: Evidence from university students in Yemen," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-20, September.
    10. Manchiraju, Srikant, 2020. "Psychometric evaluation of the Ryff’s Scale of psychological wellbeing in self-identified American entrepreneurs," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    11. Carl Magnus Bjuggren & Magnus Henrekson, 2022. "Female self-employment: prevalence and performance effects of having a high-income spouse," Small Business Economics, Springer, vol. 59(1), pages 163-181, June.
    12. Muhammad Imran Hanif & Madiha Irshad, 2018. "Impact of Entrepreneurial Orientation and Network Resource Utilization on Internationalization of SME¡¯s: Evidence from Pakistan," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(2), pages 118-131, June.
    13. Florin-Marius PAVELESCU & Valentina VASILE, 2012. "Change In Economic Structure, Expansion Of University Training And Development Of Non-Wage Employment," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 45-74, December.
    14. Karin Hederos & Anders Stenberg, 2022. "Gender identity and relative income within households: evidence from Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(3), pages 744-772, July.
    15. Cook, William & Whittle, Richard, 2015. "Do individuals’ risk and time preferences predict entrepreneurial choice?," MPRA Paper 66674, University Library of Munich, Germany.
    16. Víctor M. González Sánchez, 2018. "Self-employment, Knowledge and Economic Growth: An empirical study for Latin American countries," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.
    17. Ranu Sewdas & Sietske J Tamminga & Cécile R L Boot & Swenne G van den Heuvel & Angela G de Boer & Allard J van der Beek, 2018. "Differences in self-rated health and work ability between self-employed workers and employees: Results from a prospective cohort study in the Netherlands," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-12, November.
    18. Skrzek-Lubasińska, Małgorzata & Szaban, Jolanta M., 2019. "Nomenclature and harmonised criteria for the self-employment categorisation. An approach pursuant to a systematic review of the literature," European Management Journal, Elsevier, vol. 37(3), pages 376-386.
    19. Pankaj C. Patel & Marcus T. Wolfe, 2022. "Of free markets and a secular mind: the value of economic decentralization and individual secular values in entrepreneurship," Small Business Economics, Springer, vol. 58(1), pages 93-119, January.
    20. Pernilla Andersson Joona & Eskil Wadensjö, 2013. "The best and the brightest or the least successful? Self-employment entry among male wage-earners in Sweden," Small Business Economics, Springer, vol. 40(1), pages 155-172, January.
    21. Åstebro, Thomas & Tåg, Joacim, 2015. "Jobs Incorporated: Incorporation Status and Job Creation," Working Paper Series 1059, Research Institute of Industrial Economics.
    22. Víctor M. González-Sánchez & Antonio Martínez Raya & Susana de los Ríos-Sastre, 2020. "An Empirical Study for European Countries: Factors Affecting Economic Growth and Self-Employment by Gender," Sustainability, MDPI, vol. 12(22), pages 1-15, November.
    23. Malgorzata Skrzek-Lubasinska & Zofia Grodek-Szostak, 2020. "The Self-Employment Rate Index as a Measure of Economic Trends: Impact of Heterogeneity of the Self-Employed on the Quality of Indicators," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 483-501.

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    More about this item

    Keywords

    Labour Force Survey; self-employed workers; self-employment; labour statistics; administrative sources; RAMS; global entrepreneurship index; GEINDEX; high impact entrepreneurship; COMParative ENtrepreneurship Data for International Analysis; COMPENDIA; Sweden; cross-country studies; statistical data; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship research; Europe.;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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