Examining the motivation factors for individuals choosing self-employment: An assessment on Saudi labor market

Abstract

The self-employment issue has attracted the attention of both researchers in the field of economies of labor and policymakers. This paper investigates the main determinants of being self-employed in Saudi Arabia including age, gender, qualification, earning, and non-financial benefits cited by the self-employed workers in the Saudi labor market. However, very limited previous research has discussed the subject of self-employment determinants altogether. The analysis uses the "household survey" Labor Force Direct Survey LFDS for Saudi Labor Market to investigate individuals’ determinants for being self-employed and to have a better explanation of self-employed jobs and their determinants. Estimates are presented on a sample of 1100 participants who became self-employed by 2017. The data provide detailed information on self-employment that allows analyzing the complete set of determinants that controlled self-employment. The descriptive statistics show that the self-employed tend to be young males aged between 20-35 years, with a preference of working in the telecommunication sector, with a high school certificate, and with a monthly earning target between 7001-10000 SR. Findings show that the most cited reason for the male at 90% was a preference for being one’s own boss. For females, the most cited motivating factor about 89% was ‘the opportunity to raise more money.    

Keywords: {'name': 'Motivation; Self-employment; Labor Market; Saudi Arabia'}

Authors & affiliations

Hussain Mohammed A AlObaid
Affiliation not supplied

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