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Self-exploitation or successful entrepreneurship?: The effects of personal capital on variable outcomes from self-employment

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>19/11/2018
<mark>Journal</mark>Journal of Small Business and Enterprise Development
Issue number6
Volume25
Number of pages20
Pages (from-to)866-885
Publication statusPublished
Early online date21/05/18
Original languageEnglish

Abstract

Purpose
The purpose of this paper is to understand whether the personal capital of the entrepreneur positively or negatively affects outcomes from self-employment.

Design/methodology/approach
Data from the UK’s longitudinal household surveys (BHPS, UKLHS) between 1991 and 2014 were analysed. Relationships between age, education, health and family status, income earned and hours worked were tested.

Findings
Entrepreneurs with higher levels of personal capital enjoyed higher incomes. However, those with lower levels of personal capital were more likely to have negative returns from self-employment, and so experience it as “self-exploitation”.

Research limitations/implications
A basis for understanding different outcomes from self-employment was developed and tested.

Practical implications
Specific characteristics of continuing and new entrepreneurs were identified that are positively associated with beneficial outcomes from self-employment.

Originality/value
Positive and negative outcomes from self-employment are explained. The notion of personal capital is developed as an explanatory framework for variable outcomes from self-employment.

Bibliographic note

This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here (URL of the record on the Pure Portal). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.