A transition to entrepreneurship from paid employment in the period of economic crisis: Will this lead to positive career outcomes?

Ardianti, R.R. Retno and Atmadja, Adwin Surja (2021) A transition to entrepreneurship from paid employment in the period of economic crisis: Will this lead to positive career outcomes? In: the 2021 Australian Centre for Entrepreneurship Research Exchange Conference, 12-02-2021 - 12-02-2021, Goldcoast, QLD - Australia.

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Abstract

This paper aims to reveal the implication of transitions from paid employment to entrepreneurship during the period of economic crises. We integrate insight from the career and time perspective in entrepreneurship to reveal the career implication of switching to self- from paid employment by considering the timing, sequence, and duration in our analysis. We employ entropy balancing to examine the overtime changes in job satisfaction, life satisfaction, and income, as the subjective and objective measures of career success, on samples of paid employed individuals who switch to self-employment during 1998 Asian financial crisis in Indonesia and the 2008 global financial crisis in the United Kingdom. Our findings show that in both countries, those who do not survive in self-employment are mostly switching back to paid employment or experiencing downward mobility in their career. In addition, our study reveals that transitions to self-employment give no gains to the individuals. The job and life satisfaction of paid employed who switch to self-employment are relatively similar to those who remain in paid employment, while their income are significantly lower, except in Indonesia, where those who switch to self-employment have relatively similar incomes compared to similar individuals who remain in paid employment.

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