Entrepreneurship and salaried work have traditionally been regarded as two different career paths in Finland. However, a recent study reveals that in some occupational groups the boundaries between these two occupations overlap. The work of freelance journalists, artists, translators and interpreters, for example, is typically characteristic of both entrepreneurship and salaried work. The study findings challenge the country’s educational, legislative and social security systems.
In 2004, the Ministry of Labour (Työministeriö) launched a research project aiming to examine the kinds of transitions from salaried work to entrepreneurship that are taking place in Finland in the 21st century. As part of the project, a special study focused on occupational groups working at the boundaries between entrepreneurship and salaried work, such as freelance journalists, artists, translators and interpreters. The recently published study draws on labour statistics panel data from Statistics Finland (Tilastokeskus), as well as on separate surveys with some 1,000 respondents.
Income source
In the study, the relationship between entrepreneurship and salaried work is shown as a dynamic process where the two working models might co-exist or alternate as a means of livelihood, their role varying according to the age, stage of career and occupational group of the individual. For some respondents, entrepreneurship is the main livelihood, while for others it is merely a possibility of extra income. Entrepreneurship as a secondary occupation is typical particularly at the beginning and end of work careers.
The occupational groups studied represent strong professional skills. A high-skilled profession makes entrepreneurship activity possible and protects the worker from unemployment. However, the profession does not in itself guarantee financial success or a stable income as an entrepreneur, but should be complemented by business skills.
The narrowness and specialisation of waged work labour markets may lead to the need to take up a more entrepreneurial role. However, systematic entrepreneurship might demand special skills which would require investment in further training. Thus, the combination of waged work and entrepreneurship may provide the individual with a better income than either of these options separately. The survey respondents do not regard entrepreneurship as a final career solution, but rather as a flexible employment alternative.
Physical organisation of activity
Most of the survey respondents have not organised their activity along any logic of what is traditionally referred to as entrepreneurship: they work at home, without business partners or employees. Only artists generally have separate work premises. However, most respondents perceive their work as including characteristics associated with entrepreneurship, such as independence, overall responsibility, and the need for innovation and constant regeneration. Excluding the artists, the respondents also acknowledge that they work under the conditions of supply and demand. Nonetheless, the financial risks involved are typically relatively small. In general, the activity of freelance journalists is more organised and larger in scale than that of the other groups.
Role identification
Most of the respondents identify themselves primarily with their profession, but some also see themselves as entrepreneurs. Identification as an entrepreneur is most common among freelance journalists. Artists’ attitudes are ambiguous: they regard entrepreneurship as a condition for their work or a central part of it, but do not identify themselves as entrepreneurs. For them, the choice of occupation has typically been systematic, while the other occupational groups have more commonly drifted into the situation of entrepreneurship.
Challenges to prevailing systems
So far, the Finnish educational and social security systems, as well as legislation, have recognised only two mutually exclusive working models: salaried work and entrepreneurship. Current research demonstrates that, with the change in society, the boundaries between these two options are merging and blurring, thus challenging the prevailing systems. The researchers recommend, among other things, including basic knowledge and skills of entrepreneurship activity into vocational and higher education curricula. They also call for greater flexibility in legislation and social security systems. From the point of view of economic efficiency, it is important that individuals are able to cross boundaries flexibly at different phases of their careers.
Source
Akola, E., Heinonen, J., Kovalainen, A., Pukkinen, T. and Österberg, J., Yrittäjyyden ja palkkatyön rajapinnalla? Työn ja toimeentulon rakentuminen eri ammateissa 2000-luvun Suomessa [At the boundaries of entrepreneurship and waged work?], Labour Policy Research 326, Helsinki, Ministry of Labour, 2007.
Hanna Sutela, Statistics Finland