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IV. Reasons for Growth


The general consensus is that employer practices such as downsizing and subcontracting have been the primary factor for self-employment growth (though it is also suggested that outsourcing has levelled off). The stigma that society attaches to being laid off and to self-employment is now much reduced, since there are increasing numbers of people 'in the same boat'. Many of the growing number of self-employed managers and professionals have benefited from this factor.

Growth in self-employment over the last two decades can also be linked to the continuing growth of the service sector in Canada's economy, a sector in which self-employment opportunities are more numerous. However, there has been a general rise in self-employment in all sectors of the economy and most observers agree that self-employment will continue to grow.

The above mentioned factors have increased both the 'push' and 'pull' into self-employment, although there are diverging views on the motivations. The implication that people tend to be 'pushed' into self-employment is supported by the statements of a number of professionals who assist the self-employed. Many of their clients have indicated they would not have considered self-employment without the security of a severance package or a self-employment assistance benefit.

On the other hand, several respondents stated that, though they were initially pushed into self-employment through situations such as the loss of a job through downsizing and they have come to enjoy the 'pull'-like aspects of their self-employment experience. In particular, they enjoy the independence, flexibility, and variety that self-employment offers. Commentators also identify technology, demography and the growth of niche markets as additional factors that encourage individuals to choose self-employment occupations.


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