The Self-Employment of Men and Women: What are their Motivations?

Do men and women carry different motivations for entering self-employment? Earlier researchers have suggested that, as primary care givers for children and families, women face a more stringent time constraint relative to men. Thus, where men see self-employment as a chance for greater financial opportunity, women see a chance to take work that allows more time at home. This paper investigates this hypothesis using unique data that allow analysis of individual self-employment as a function of traditional economic and demographic variables as well as variables that partially capture individuals’ opinions and perceptions of pecuniary and nonpecuniary aspects of entrepreneurism. Results suggest that men who choose self-employment are influenced principally by pecuniary concerns, while women are influenced principally by family concerns and by the opinions of their family, friends, and peers.