A new study finds that education level and military experience predict the chances of becoming self-employed.
Those who pursue a graduate education are 8 percent more likely to become self-employed, according to new research released by the U.S. Small Business Administration Office of Advocacy.
In a working paper on the characteristics of the self-employed, Dr. Chad Moutray, chief economist for the Office of Advocacy, finds that education level, prior military service and household income are strong indicators for self-employment.
While a graduate degree increases the chances of entrepreneurship the most, the study found that having some college education raised the likelihood by 3.3 percent, and among those who have a baccalaureate degree, by 4.4 percent.
The study also found that the greatest predictor of self-employment is prior military experience, which increases the likelihood of becoming an entrepreneur by 11 percent. Additionally, homeownership increases the probability by as much as 7 percent and for every $100,000 increase in mortgage value, the likelihood that homeowners will become self-employed goes up by 2 percent.