05 May Are Part-Time Entrepreneurs Job Creators?
On the 8th of March 2023, International Women’s Day, the Association of Allan Gray Fellows hosted Women’s Pitch Night, an event featuring several women who pitched their business ideas. The keynote speaker, Kirsty Everett, talked about the topic “Are Part-Time Entrepreneurs Job Creators?” During her presentation, she shared three key questions that shed light on the characteristics of part-time entrepreneurs, their job-creating potential, and their survival rates.
The significance of this event was the promotion of women’s participation in part-time entrepreneurship. Women often face obstacles in achieving their entrepreneurial goals, such as lack of access to funding, discrimination, and the difficulty of balancing family responsibilities with business pursuits. However, part-time entrepreneurship can be an alternative option for women to start a business while maintaining a work-life balance.
What Are the Characteristics of Part-Time Entrepreneurs?
Kirsty Everett drew from a study by Folta et al. (2010), which found that part-time entrepreneurs had less entrepreneurial experience, higher salaries, and more education compared to those in full-time self-employment. Part-time entrepreneurship was not seen as a route to overcoming credit constraints, as stated by Petrova (2005, 2012). However, starting out as a part-time entrepreneur was linked to higher survival rates than transitioning directly from wage employment, according to Raffiee and Feng (2014). It appears to be a way to test entrepreneurial/business potential while reducing income risk.
Who Are Part-Time Entrepreneurs?
Part-time entrepreneurs are mostly male, highly educated, motivated by opportunity, and have recently been angel investors. However, this event aimed to encourage more women to take up the challenge of being part-time entrepreneurs and overcome the obstacles they face.
Do Part-Time Entrepreneurs Create More Jobs Than Full-Time Entrepreneurs?
Yes. In fact, the total sample shows that three more jobs are created by part-time entrepreneurs compared to full-time entrepreneurs. In the case of females only, six more jobs are created, while the result for males only is insignificant. Factors that increase the number of jobs created include being motivated by opportunity, being highly educated, and having recently been an angel investor.
What Is the Relationship Between Part-Time Entrepreneurship and Business Survival Rates?
Starting out as a part-time entrepreneur is linked to higher survival rates than transitioning directly from wage employment, according to Raffiee and Feng (2014). It appears to be a way to test entrepreneurial/business potential while reducing income risk.
The Women’s Pitch Night held on International Women’s Day brought attention to the potential benefits of part-time entrepreneurship for women. Despite the challenges women face when starting a business, part-time entrepreneurship offers a viable option to achieve their entrepreneurial goals while balancing family responsibilities. Encouraging women to take up part-time entrepreneurship could help promote gender equality in the business world. Overall, the event shed light on the characteristics and job-creating potential of part-time entrepreneurs, emphasizing the importance of supporting and promoting their participation in entrepreneurship.
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