Self-employed are not Entrepreneurs

Posted on December 30, 2010. Filed under: Uncategorized |

A new (to me) blog, Super-Economy, discusses in his dissertation (job market page) how many economists use easy to obtain “self-employment” statistics as a proxy for entreprenuers.

But he claims, persuasively, that there are many issues where entrepreneur data is the reverse of self-employment data.

He asks business owners to self-identify as entrepreneurs or self-employed based on the ambition to grow and innovate. Surprisingly, 80% of the self-employed do not consider themselves entrepreneurs. …

Taxes, the level of regulations, the level of trust and the quality of institutions are examples of variables that are related in reverse ways between entrepreneurship and self-employment.


His conclusion:

Rather than treating small business and innovative Schumpeterian entrepreneurship as more or less synonymous, policy makers should be aware that they face a trade-off: either we pursue policies that give us more small business or we aim to encourage entrepreneurship.

Me: The world needs more entrepreneurs — those willing to start businesses that will hire others.



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