Job loss inspires rural entrepreneurs, but they may not be ready to run a business, Ohio study says

Over the past few decades, Ohio has seen the number of self-employed double, climbing to almost half a million. An Ohio State study finds an increasing number of them are motivated to become entrepreneurs by a recent job loss, and "the ramifications are startling" for rural areas, reports Paula Schleis of the Akron Beacon Journal.

"That increases the number of entrepreneurs who are said to be ill-equipped to handle the risks and challenges of starting a small business, and lowers the average income of the sector as a whole," Schleis writes. She also points out that in 1969 rural self-employed workers made 4 percent more than their traditionally employed counterparts, but now the self-employed make 50 percent less.

Ohio State professor Mark Partridge wrote the report, called ''Does Enhancing Ohio's Small Businesses and Entrepreneurs Provide the Key to Growth?'' He said technology has allowed more people to do "casual work" from home. He said that in rural areas where manufacturing jobs have disappeared, the decision to become self-employed is more a matter of desperation. Partridge explained, ''If people are kind of forced into starting their own business, they may not come at it at a systemic or dynamic way, and they probably won't be as successful as if they formed a business for creative reasons.'' (Read more)