WASHINGTON — Individuals with prior military service–a segment that more credit unions are reaching out to–tend to be self-employed, according to new research.
On Dec. 11, the Small Business Administration's Office of Advocacy released a white paper entitled, Educational Attainment and Other Characteristics of the Self-Employed: An Examination using Data from the Panel Study of Income Dynamics.
The data tracks families over time beginning in 1968. It also analyzed data from the Panel Study of Income Dynamics for 2003.
Among its findings was the fact that prior military experience is the strongest predictor of self-employment–increasing the likelihood by 9.4% to 11%. The second largest group was homeowners, who are 7% more likely to be self-employed, while every $100,000 increase in mortgage value increases the probability of self-employment by 2%, the data showed. Having some college education increases the chances of self-employment by 3.3%, a baccalaureate degree by 4.4%, and graduate experience by 8.3%.
Credit unions continue to reach out to those who are currently serving or have served in the military.
Most recently, more than 50 credit unions have signed on with SBA's new Patriot Express Loan Initiative, which provides streamlined loans to members of the military.
“We often talk about the importance of education to our own personal fulfillment and to the economy as a whole,” said Dr. Chad Moutray, the paper's author and chief economist for the Office of Advocacy. “This study shows that educational attainment is also a strong predictor of self-employment, with additional years of college significantly increasing the chance of being one's own boss. Homeownership–a measure of wealth– and veteran status are also vital.”
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