Monday, January 7, 2008

Self Employment Indicators

Here are excerpts I found quite interesting from a Small Business Administration article on the self-employed. Over the years we have educated many from the military to enter this new field of freight brokering. Disabled vets can qualify for full funding of our program. Education is a key factor for those who choose self employment. From my experience the greatest indicator for success as a freight broker is tenacity. Those who decide they are going to succeed, don’t give up, they keep making the calls and attending to their business with excellent customer service. They keep learning and network with others.

Education, Military Service, Wealth Predict Self-Employment

Prior Military Service Is Strongest Predictor Of Self-Employment

WASHINGTON, D.C. – Educational level, prior military service, and household
wealth are strong predictors of self-employment according to a working paper
released today by the Office of Advocacy of the U.S. Small Business
Administration. The paper finds that individuals with prior military
experience are up to 11 percent more likely to be self-employed, while educational level can increase the likelihood of self-employment by as much as 8.3 percent.

“We often talk about the importance of education to our own personal
fulfillment and to the economy as a whole,” said Dr. Chad Moutray the paper’s author and Chief Economist for the Office of Advocacy. “This study shows
that educational attainment is also a strong predictor of self-employment,
with additional years of college significantly increasing the chance of being
one's own boss.” He added, “Homeownership - a measure of wealth - and veteran status are also vital.”

The paper, Educational Attainment and Other Characteristics of the Self-
Employed: An Examination using Data from the Panel Study of Income
Dynamics , analyzed data from the Panel Study of Income Dynamics (PSID) for 2003. The data set is unique as it tracks families (including adult children’s families) over time, beginning in 1968. The paper was released at “What Makes an Entrepreneur? Educational Attainment and Other Characteristics of the Self-Employed” seminar, sponsored by the Hudson Institute Center For Employment Policy

The paper finds, among other things, that:

* Having some college education increases the chances of self-employment
by 3.3 percent, a baccalaureate degree by 4.4 percent and graduate
experience by 8.3 percent.

* Prior military experience is the strongest predictor of
self-employment, increasing the likelihood by 9.4 to 11 percent.

* Homeowners are 7 percent more likely to be self-employed, while every
$100,000 increase in mortgage value increases the probability of self-
employment by 2 percent.

The Office of Advocacy, the “small business watchdog” of the federal
government, examines the role and status of small business in the economy
and independently represents the views of small business to federal
agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small
business issues.

For a copy of the paper, visit the Office of Advocacy web site

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an
independent voice for small business within the federal government. The
presidentially appointed Chief Counsel for Advocacy advances the views,
concerns, and interests of small business before Congress, the White House,
federal agencies, federal courts, and state policy makers. For more
information, visit, or call (202) 205-6533.

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Moving forward,

Jeff Roach

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