The entry into and exit out of self-employment and business ownership in Canada / by Douwere Grekou and Huju Liu.: CS11-0019/407E-PDF

"Using a newly developed database from administrative sources, the Canadian Employer–Employee Dynamics Database (CEEDD), this paper examines in more detail the entry and exit processes for (unincorporated) self-employment and (incorporated) business ownership. This paper finds that self-employment and business ownership have different entry and exit processes. Self-employment has higher entry and exit rates and lower survival probabilities than business ownership. Over the period from 2002 to 2013, almost one-half of entrants to business ownership survived five years while less than 30% of entrants to self-employment did the same. Long-term entrants (i.e., entrants who can survive at least three years) dominate the overall entry into business ownership, while short-term entrants (i.e., entrants who survive at most two years) dominate the entry into self-employment. Self-employment and business ownership also differ by origin of entry. While the largest source of entry into both self-employment and business ownership is from paid employment, non-employment is the second-largest source of entry into self-employment, and self-employment is the second-largest source of entry into business ownership"--Abstract, p. 5.

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