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Examining the motivation factors for individuals choosing self-employment: An assessment on Saudi labor market

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  • Hussain M. Al Obaid

    (Business Admistration Department, College of Business, King Khalid University, Abha-61471, Saudi Arabia)

Abstract

The self-employment issue has attracted the attention of both researchers in the field of economies of labor and policymakers. This paper investigates the main determinants of being self-employed in Saudi Arabia including age, gender, qualification, earning, and non-financial benefits cited by the self-employed workers in the Saudi labor market. However, very limited previous research has discussed the subject of self-employment determinants altogether. The analysis uses the "household survey" Labor Force Direct Survey LFDS for Saudi Labor Market to investigate individuals’ determinants for being self-employed and to have a better explanation of self-employed jobs and their determinants. Estimates are presented on a sample of 1100 participants who became self-employed by 2017. The data provide detailed information on self-employment that allows analyzing the complete set of determinants that controlled self-employment. The descriptive statistics show that the self-employed tend to be young males aged between 20-35 years, with a preference of working in the telecommunication sector, with a high school certificate, and with a monthly earning target between 7001-10000 SR. Findings show that the most cited reason for the male at 90% was a preference for being one’s own boss. For females, the most cited motivating factor about 89% was ‘the opportunity to raise more money. Key Words: Motivation, Self-employment, Labor Market, Saudi Arabia

Suggested Citation

  • Hussain M. Al Obaid, 2020. "Examining the motivation factors for individuals choosing self-employment: An assessment on Saudi labor market," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(5), pages 150-159, September.
  • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:5:p:150-159
    DOI: 10.20525/ijrbs.v9i5.799
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    References listed on IDEAS

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