South West Regional Skills Enterprise and Employment Analysis 2007/2008

Final Report

5.1 Self-employment

Entrepreneurship is one of the Government’s five ‘productivity drivers’. According to the State of the Region Report on the South West Labour Market 2007, there are no accurate measurements of entrepreneurship. However, self-employment rates are sometimes used as a proxy measure (see Section 6 below). There is a range of reasons, however, why self-employment is high; not all of which are positive. South West England is characterised by relatively high levels of self-employment but has relatively low ‘productivity’ overall.

Self-employment is sometimes an indication of limited quality employment opportunities. It may also be argued that a high proportion of the self-employment is centred in the region’s low productivity sectors. Regardless of motivations, regional workers were marginally more likely to be self-employed. An important characteristic of the labour market, however, is that regional female self-employment rates are half those of the male rates, although regional female self-employment rates are higher than nationally. The comparatively lower levels of self-employment may be as a result of economic, social and cultural pressures. Employment rather than self-employment is more secure. As part of their historic role as primary carer, it may be that women are drawn towards employment rather than self-employment.