Creating Your Own Job: The Self-employment Phenomenon

Self-employment has increased significantly since the early 1990s, when less than 16% of the province’s workforce was self-employed. By 2008, nearly one in five workers in BC was self employed.

Why is self-employment becoming more common?

There are many reasons why someone might decide to work independently rather than as an employee. Some relate to lifestyle preferences, while others are a reflection of prevailing labour market conditions.

Workers who can’t find employment that matches their skills may choose to start up their own business. Self-employment may also be an option for those who don’t want or need to work full time, but are not ready to leave the labour market completely. Some retirees choose this way of supplementing their pension income, as well as keeping active, by pursuing interests that they haven’t had time for in the past.

An entrepreneurial person who wants to try out a new idea or sell a product that he or she has made might start up a business. So might someone who has specialized skills, or whose skills are in such high demand that they can earn more as a contractor than as a paid employee. Also, the nature of some types of occupations (e.g., carpentry, farming or dentistry) is such that self-employment is a very typical work arrangement.

Most work alone

Two out of three self-employed people do not have paid help. They either work alone or with the help of unpaid family members. That represents a significant departure from the past. In 1990, the number of self-employed people with paid help was only slightly lower than the number working on their own.

Almost a fifth of BC workers are self-employed

…and most work without any paid help

The likelihood of self-employment varies among industries

Self-employment is most common in fishing and agriculture

Fishing, hunting & trapping and agriculture are the industries where self-employment is most common. In fishing, hunting & trapping, two out of three workers are self employed and nearly half of the people working in agriculture are their own bosses. The nature of the work in these industries makes self-employment a very common arrangement, and they tend to attract people who like to work independently, whether they’re on a farm or a fishing boat.

A third or more of the people who work in professional, scientific & technical services, construction, other services, and business, building & support services are their own bosses. These industries are particularly well-suited to self-employment, since they rely a great deal on the unique skills of individuals. Once an individual has acquired the skills needed to do construction, work as an accountant, lawyer, or engineer, style hair or do janitorial work, it’s usually possible to set up a small business with a relatively modest investment in capital equipment.

Self-employment is more common in goods industries (averaging 21% of the workforce during this period) than in the service sector (18%).

However, self-employment has increased more rapidly in the service sector than in the goods industries, where this type of work arrangement has traditionally been more common. Four of the five industries that have seen the biggest increase in self-employment since 1990 are in the service sector.

One reason why self-employment has increased more in the service sector than in goods industries could be the shift that is taking place in the industrial structure of the province. Service industries such as computer and engineering services are among the fastest-growing industries in the province. Home-based offices or partnership arrangements are quite common in these industries.

Service industries have seen the largest increase in self-employment since 1990

Being your own boss isn’t risk free. It can be very satisfying, and in some cases, very lucrative, but there are a lot of self-employed people who don’t succeed in their endeavours. Those who do succeed often spend long hours, and invest a lot of time and effort into building up their business. It might not be the right choice for you, but self-employment is an option you should consider when planning your career.