June 2003 - Ref 663
Combining self-employment and family life
Self-employment is often associated with flexibility and choice over
when, where and how much to work. These features would all seem to be
particularly attractive to parents needing to reconcile paid work with
family responsibilities. However, very little is known about the
benefits and challenges of combining self-employment with parenting.
To fill this gap, Alice Bell and Ivana La Valle of the National Centre
for Social Research (NatCen) carried out secondary analysis of two
similar surveys, which were representative of over 10,000 parents with
children aged 0-14 in England. The study found that:
- A quarter of families with children included at least one
self-employed parent.

- Many mothers entered self-employment because they believed it could
offer working arrangements that made it easier to reconcile paid
employment with family responsibilities. This did not feature in most
fathers' decisions to become self-employed.

- For many mothers, self-employment meant having more family-friendly
working arrangements, such as the ability to choose when and where to
work.

- For some mothers and most fathers, self-employment meant working
long, atypical hours, and more frequent weekend work than for parents
who were employees.

- Patterns of childcare use varied considerably among self-employed
mothers. Those with employees were more likely to use (non-parental)
childcare, relied on formal provision and had higher childcare costs.
Among those without employees, levels of formal childcare use and
expenditure were lower.

- These patterns of childcare use also seemed to reflect differences
in work patterns. Self-employed mothers with employees were more
likely to work long, atypical hours, while the majority of those
without employees worked part-time.

- Self-employed mothers were more likely than their employee
counterparts to report unmet demand for childcare. For those with
employees, these difficulties might be linked to the amount of
childcare required and the need for provision at 'non-standard' times.
However, for those without employees, the difficulties might be
related to lack of affordable childcare, as many of them were in
low-paid jobs.

Background
Much has been written about self-employment, but research into the
particular circumstances of self-employed parents has been limited.
Furthermore, although the Government has been giving high priority to
reconciling paid employment and parenting, little is known about the
extent to which new family-friendly legislation and initiatives are
providing adequate support for self-employed parents.
This study aimed to gain better understanding of how parents
reconcile self-employment with family life. The classification of
self-employment was based on parents' self-definition. Most of the
analysis of the two surveys distinguished between self-employed
parents with and without employees, as these represented two distinct
groups.
Working arrangements
The study found that 9 per cent of working mothers were
self-employed (7 per cent with employees and
2 per cent without). The corresponding figure for fathers was
higher: 16 per cent were self-employed (7 per cent with employees and 9 per cent without). Self-employed mothers were generally more highly qualified than
their employee counterparts. However, while those with employees were
concentrated in professional and managerial occupations (77 per cent),
the largest group of self-employed mothers without employees were in
manual jobs (42 per cent). The picture was similar for self-employed
fathers: 83 per cent of those with employees were in the professional
and managerial group; 57 per cent of those without employees were in
manual jobs.
The findings showed that while self-employment might mean flexible,
family-friendly arrangements for some parents, others seemed to have
rather family 'unfriendly' work patterns:
- Part-time work was widespread among
self-employed mothers without employees; 62 per cent worked fewer
than 30 hours a week. Self-employed mothers with employees were
least likely to work part-time, and 22 per cent of them worked over
48 hours a week (compared with 11 per cent of self-employed mothers
without employees and 3 per cent of employee mothers).
- Long working hours were widespread among
self-employed fathers, particularly those with employees, 59 per
cent of whom worked over 48 hours a week (compared with 41 per cent
of self-employed fathers without employees and 28 per cent of
employee fathers).
- 60 per cent of self-employed mothers with
employees worked on Saturdays and Sundays (usually or sometimes),
compared with 41 per cent of those without employees and 36 per cent
of employee mothers.
- 63 per cent of self-employed fathers with
employees, 59 per cent of those without employees and 57 per cent of
employee fathers worked on Saturdays and Sundays.
- Predictably, homeworking was the area where the greatest
differences were found - 52 per cent of self-employed mothers with
employees and 65 per cent of those without employees worked from home
(all or some of the time), compared with 8 per cent of employee mothers. However, homeworking was less
common among self-employed fathers (25-29 per cent).
Use of childcare
The study analysed information on any type of childcare used by
parents when the children were not with them or their partner. It
included data on formal provision (e.g. playgroups, day nurseries,
early years education, out-of-school clubs) and informal childcare
(e.g. grandparents, friends).
Self-employed mothers without employees were less likely to use
childcare (55 per cent, compared with 64-66 per cent of other working
mothers). They used fewer hours (10 hours a week, compared with 14-15
hours by other working mothers), and their childcare costs were also
relatively low (£49 per week compared with £53 reported by employee
mothers, and £76 by self-employed mothers with employees). These
results seemed to reflect the work patterns of self-employed mothers
without employees. They were more likely to work part-time and be
home-based, which enabled many of them to minimise use of non-parental
childcare.
Patterns of childcare use among self-employed mothers with
employees also seemed to reflect their working arrangements. The long,
atypical hours worked by many of them might mean that they did not
have the flexibility and choice open to self-employed mothers without
employees - hence their greater use of childcare, particularly formal
and paid provision.
Self-employed mothers were more likely to report unmet demand for
childcare - 36-38 per cent, compared with 26 per cent of employee
mothers. For those with employees, these difficulties might be related
to their need for a large amount of childcare and provision at
'non-standard' times. For some of those without employees, many of
whom were in low-paid jobs, affordability might be a factor preventing
them from accessing the childcare needed.
Influences on parents' employment decisions
Over three-quarters of mothers (79 per cent) decided to become
self-employed mainly or partly for childcare reasons, by contrast
childcare considerations were only mentioned by 14 per cent of
fathers.
On the whole, it appeared that self-employed mothers did have more
flexible working arrangements than their employee counterparts.
However, self-employed mothers without employees differed in many
respects from those with employees. The employment decisions of those
without employees seemed much more likely to be influenced by the need
or desire to minimise non-parental childcare: 50 per cent of them
became self-employed to avoid the need for childcare, compared with 24
per cent of self-employed mothers with employees. The occupational
profile of these mothers suggested that this was partly because they
could not afford formal provision, although it might reflect their
preference to look after their children themselves.
Attitudinal data confirmed this mixed picture. If they could afford
it, the majority of self-employed mothers without employees would like
to reduce their hours (59 per cent) or give up work (48 per cent) to
be with their children. However, a quarter would work more hours if
they had access to affordable childcare.
By contrast, the work decisions of self-employed mothers with
employees seemed more driven by career and intrinsic job motivators,
and probably the needs of their business. Access to formal childcare
appeared to play a greater role in shaping their decisions, and their
occupational profile suggested that they were more likely to be able
to pay for the type of childcare that allowed them to 'have it all'.
Many of these mothers would like to reduce their working hours (60 per
cent) - not a surprising finding in view of the long hours worked by
many of them. However, they were the least likely to wish to give up
work altogether to become full-time parents.
Couples and self-employment
The study explored whether the differences in work and childcare
arrangements between self-employed and employee parents were also
found among working couples with differing combinations of employment
status. The combinations were: families where only one parent was
self-employed (and the other was an employee); those where both were
self-employed; and those where both were employees. The findings
showed that:
- A quarter of families included at least one
self-employed parent. These families tended to have more children
than other working parents, which could indicate that larger
families with more complex childcare needs might be particularly
attracted to self-employment and the flexibility it can provide.
- Long, atypical hours were particularly
prevalent among self-employed couples; 35 per cent of them worked a
combined total of 90+ hours a week, compared with 9-14 per cent of
other dual-earner couples.
- Despite their long and atypical hours, self-employed couples were
less likely than other working families to use childcare. This could
be because of the prevalence of homeworking among this group. Some of
these couples were also likely to use some kind of 'shift parenting'
(organising their hours so that one parent is available for childcare
while the other is working).
- Both maternal and paternal self-employment
was associated with more traditional divisions of labour within the
family. In 69 per cent of couples where only the mother was
self-employed (and the father was an employee), mothers had main
responsibility for childcare, compared with 56 per cent of families
where the father was self-employed (regardless of whether the mother
was also self-employed or an employee), and 49 per cent where both
were employees.
Policy considerations
Hours of work
Some of the greatest differences between self-employed and employee
parents were found in relation to working hours, an area where
legislation has been introduced to limit excessive working hours among
employees. Some self-employed people (e.g. sub-contractors) depend
heavily on certain sources of work, and in practice have little
flexibility and autonomy. Therefore it could be argued that, like
employees, they might benefit from legislative protection against
demands to work excessive hours. Some self-employed parents with
stable or single employers might also benefit from new legislation
which, from April 2003, gives parents the right to ask for flexible
working arrangements (and places a duty on employers to consider these
requests seriously).
The high levels of weekend working among self-employed parents and
the potential negative consequences for their families might also be
considered. Other research among parents has shown that Sunday work is
the most unpopular of atypical work patterns, and the most likely to
disrupt family life.
These findings raise the question of the extent to which society
and the Government should promote the '24-7' society and Sunday
business opening, given the negative consequences on family life. This
issue particularly affects self-employed parents with businesses, who
are likely to feel that they have no option but to work on Sundays
because of competition and loss of trade if they do not. Moreover,
some self-employed parents may have as employees parents who are
dissatisfied about having to work regularly on Sundays. Therefore,
both for parents who are employees and for those who own small
businesses, it might help if there were less Sunday working.
Leave entitlements
There might be scope for extending paid leave entitlements to
self-employed parents who in many respects are similar to employees,
for instance sub-contractors who work mainly for one employer. Parents
running businesses could also benefit from this kind of financial
support, but the leave entitlement might need to be more flexible. For
example, instead of taking two weeks paternity leave, it might be more
feasible for self-employed fathers to reduce their hours of work.
Some self-employed parents face difficulties in being away from
their business. This indicates that a better insurance support system
might be needed for self-employed people, to allow them to recruit
temporary managers if they need to take time off for family reasons.
Location of work
The study's findings on location of work showed that in this
respect, self-employed parents were probably better off than their
employee counterparts. Homeworking was widespread among self-employed
parents, and particularly appealed to mothers.
However, despite its obvious attractions, other research has shown
that homeworking can sometimes mean simultaneously looking after the
children and working, which can lead to high stress levels. This
raises the question of whether better childcare provision could help
some of these mothers, whose work and childcare arrangements might be
partly determined by lack of affordable provision.
Childcare support
Self-employed parents are more likely to have older children, and
it is known from other research that the level of formal provision for
schoolchildren is low (particularly for older ones) and rarely free.
Self-employed parents also tend to have a greater number of children,
which again has implications for the logistical difficulties of
arranging childcare and, more crucially, for its costs. Better (and
more affordable) out-of-school provision would be likely to benefit
many self-employed parents.
Flexible provision that can be varied according to parents' needs
would seem to suit some self-employed mothers - particularly those
with employees, as they might need to vary their childcare
arrangements according to business requirements. These mothers' work
patterns mean that they might also benefit from provision at atypical
times. The results from this study also suggest that more affordable
childcare and better financial support might be a main area of need
for self-employed mothers without employees.
About the project
The two surveys analysed for this study were part of the Parents'
demand for childcare series, carried out by NatCen for the Department
for Education and Skills in 1999 and 2001. They included a combined
sample of over 10,000 English parents with children aged 0-14. The
samples were randomly selected from Child Benefit records. Both
surveys achieved a response rate of around 80 per cent. It was
possible to combine the data from the two surveys because they were
based on the same sample design. Consistency was also largely
maintained in terms of questionnaire content and structure.
How to get further
information
The full report, Combining
self-employment and family life by Alice Bell and Ivana La Valle,
is published for the Foundation by The Policy Press as part of the
Family and Work series (ISBN 1 86134 533 X, price £13.95).
Click on the 'order report' icon in
the left margin to order online. |