Online archive - find the most current content at nordregio.org

More self-employment

All of the regions discussed in the context of the Insular Labour Markets Project have official policies related to entrepreneurship and business-start-ups. Two reasons are given for this, namely, it is an important sector in terms of employment, and as such, it contributes to the overall development of the area in question.

Some theorists suggest that start-up-support leads to entrepreneur-ship. This study does not necessarily support this view. Rather it suggests that the encouragement of self-employment is the predominant result of this type of initiative.

The extent to which business-start-ups lead to entrepreneurship, defined as the creation of businesses employing people in addition to the entrepreneur, seems, however, to be predominantly determined by local habits and culture.

Self-employment on the other hand is on the rise in all the six communities. Experience from Ulstein in particular suggests that the level of self-employment rises during economic downturns, while the opposite holds true during periods of general economic expansion. As such, a better model for this type of behaviour may be that of the 'necessity-driven entrepreneur', who starts a company because of the lack of other alterna-tives by which to make a living. Utstein, Gotland, Åland, and Eyjafjör∂ur all have such traditions.

Similarly, someone who decides to become self-employed for reasons relating to their private or family life, is often termed a 'lifestyle entrepreneur'. Such entrepreneurs may be former 'high flyers' with busy, well -paid jobs in major urban areas who decide to 'down shift' by becoming self employed somewhere with a slower pace of life.

Another version of this model relates to those involved in the arts and crafts sector. Such people can often start up a company to generate some kind of income from their own arts or crafts work, perhaps combining this at first with traditional employment to be able to pay their bills.

For some, self-employment may simply be an addition to fixed employment, in order to gain some extra income and/or tax-advantages.

An example of policies and initia-tives to support and promote entrepreneurship is that of Kainuu's '100 entrepreneurs of tomorrow'. In Bornholm, a network organisation entitled, 'Get off to a good start' (Kom godt i gang), with a publicly funded coordinator exists, targeting new businesses.

The types of initiatives range from activities with young children still at school to business start-up courses in collaboration with the employment office. ALMI in Sweden is strong on the later.

In Norway, a national initiative entitled 'Young entrepreneurship' provides students in vocational secondary education with training and practical experience of business start-ups. The state owned company Innovation Norway, with a presence in all Norwegian counties, promotes nationwide industrial development.

Similarly, in Åland, the Chamber of Commerce and the Åland Entrepreneur Association are commissioned to support business start-ups and business development, while the Government of Åland is responsible for the financing of business development and 'incubator' activity.