About the Brief

Download Brief

The Self-Employment Training (SET) pilot program served unemployed and underemployed workers who proposed businesses in their fields of expertise. Participants had access to 12 months of case management services, customized training and technical assistance, and seed capital microgrants of up to $1,000. In two sites, SET participants who received unemployment insurance (UI) benefits could also get waivers exempting them from work search requirements.

The brief summarizes findings from an impact study that assessed the extent to which SET delivered additional self-employment supports, increased self-employment activity, and led to better reemployment outcomes. The researchers estimated impacts after randomly assigning half of the study’s 1,981 eligible applicants to a control group that was not offered SET services and supports. The researchers measured outcomes through a survey conducted about 18 months after each study enrollee applied to the program.

Key Takeaways

• SET nearly tripled the average number of personalized contacts with self-employment assistance providers between the time of enrollment and the 18-month survey.
• SET more than doubled the share of people who received non-borrowed funds.
• SET led to more people completing a business plan.
• SET increased the number of people who formalized their business.
• SET resulted in more of the program group engaging in self-employment at the time of the survey.
• SET increased the share who committed at least 20 hours per week to self-employment.
• About 60 percent of both the program and control groups held a wage/salary job at the time of the 18-month survey.
• SET led to an increase in dual employment—that is, holding a wage/salary job while pursuing self-employment.
• SET helped 3 to 4 percent of the program group become reemployed in any job—including both self-employment and wage/salary work—at the time of the 18-month survey.
• The program and control groups earned similar amounts, on average, during the 12 months before the survey.
• SET led to substantial increases in self-employment rates for a range of demographic groups.
• SET may have been particularly effective in promoting self-employment among those without recent small business experience.
• Researchers observed differences in site-level estimates of SET’s effectiveness in improving business development and work outcomes, but it is not clear what these differences reflect.
• Evaluating impacts over a longer horizon could provide an improved understanding of SET’s effectiveness.

Citation

Hock, H., Anderson, M. A. (2018). Mathematica. Supporting Self-Employment as a Reemployment Strategy: Impacts of a Pilot Program for Dislocated Workers After 18 Months. Chief Evaluation Office, U.S. Department of Labor.

Download Brief

This study was sponsored by the Employment and Training Administration, Office of Policy Development and Research, Division of Research and Evaluation, and was produced outside of CEO’s standard research development process.