“Work for Yourself” Is One of the Biggest Myths: A 30-Year Study

“Work for yourself,” “be your own boss,” “start your own business and forget the office” — for decades, these tips were seen as a universal recipe for success. However, a new large-scale study has shown that for many people, entrepreneurship not only fails to bring wealth, but also makes them less happy.

The study was conducted by a group of researchers from the University of Calgary, who analyzed the career paths of 12,686 Americans over more than 30 years. This is one of the longest scientific studies dedicated to entrepreneurship and its impact on a person’s life.

The results turned out to be far less inspiring than is commonly believed in the business world.

The researchers found that entrepreneurs are not at all a homogeneous group. Some build full-fledged companies and truly achieve financial success, while others work for themselves for years without any noticeable growth in income or quality of life.

The researchers identified four main career scenarios. Most participants — about 69% — were almost never involved in business. Another 6% started their own business in youth and remained entrepreneurs for many years. About 12% tried their hand at business but later returned to salaried employment. And roughly 13% decided to start their own business only after the age of 35.

The most important conclusion is linked not to age, but to the type of business.

People who created registered companies with employees and a long-term development strategy, on average, earned more and were more satisfied with life. This effect was especially noticeable among those who had been in business for many years.

The fate of self-employed people and owners of small informal projects was quite different. For them, entrepreneurship often did not bring significant financial advantages compared with regular work. Moreover, many reported lower levels of life satisfaction.

The most troubling indicators were recorded among people who decided to go into independent business in middle age. This group more often faced stress, financial instability and disappointment, while researchers found no noticeable income growth.

According to the authors of the study, many such entrepreneurs go into business not because of great opportunities, but because they see no prospects in the labor market. When it is difficult for a person to find a good job or move up the career ladder, their own business becomes a forced alternative. However, along with freedom come constant risks, responsibility and a lack of guarantees.

Interestingly, one of the main factors behind future entrepreneurial success turned out not to be family wealth at all. Far more important was the personal example of parents. People who grew up around business owners were much more likely themselves to become entrepreneurs in adulthood.

The findings cast doubt on one of the most popular myths of the modern labor market. Running your own business can indeed lead to financial independence, but only under certain conditions. For many people, working for themselves turns out not to be a road to freedom, but an exchange of a stable salary for stress, overwork and constant uncertainty.

The authors of the study emphasize that the key question is not whether one should start a business, but what kind of business a person creates and why they decided to do it. It is this — not entrepreneurship itself — that determines the likelihood of success.