The U.S. Department of Labor (DOL) has been conducting a series of national demonstration projects exploring innovative ways of using unemployment insurance (UI) to assist unemployed workers in making the transition to new jobs. As part of this research effort, DOL sponsored two experimental demonstration projects that tested the viability of self-employment as a reemployment option for unemployed workers. These projects, the Unemployment Insurance (UI) Self-Employment Demonstration Projects, were designed to assist UI recipients interested in self-employment to ?create their own jobs? by starting a business venture. The projects also used experimental research methods, including a control group, so that they co7uld provide evaluation results that tell us whether self-employment programs for unemployed workers can be effective and efficient as full-scale programs. The results of the Washington and Massachusetts demonstration projects have been carefully evaluated by an independent research firm and are summarized in a report included in this publication, ?A Comparative Analysis of the Washington and Massachusetts UI Self-Employment Demonstrations.? The results of these projects clearly demonstrate that self-employment is a viable reemployment option for some unemployed workers. As a direct result of these demonstration projects, the Congress enacted legislation that allows States to establish self-employment assistance programs for unemployed workers as part of their unemployment insurance (UI) programs. This legislation and a Department of Labor directive providing guidance on this program are also included in this publication.