Problems and prospects of self-employment as an economic independence option for welfare recipients

Social policymakers have begun to explore self-employment development, also known as microenterprise, as a route off welfare. With passage of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, it is important for social workers to understand the benefits and limitations of self-employment development so they can more effectively influence welfare reform in the states. This article examines the problems associated with pursuing self-employment as an option for achieving economic self-sufficiency and discusses the lessons learned from national studies of self-employment development programs. These studies suggest that self-employment can be an effective strategy for income generation and asset building for welfare recipients when the necessary supports are provided and policy barriers are removed. The potential impact Of various approaches to welfare reform on self-employment is examined, and recommendations for increasing the viability of self-employment as a route out of poverty ave discussed.