James d. Gwartney

Self-employed
While the self-employed constitute a big part of the labor force, they account for a much larger
share of millionaires. For example, in 2015 about 17 percent
employed and about 80 percent of working millionaires were self-employed in the
Netherlands.
entrepreneurs. First, they are good at identifying and acting on attractive opportunities that
have been overlooked by others. Second, they are willing to take risk. Greater risk and the
possibility of higher returns go together. To a degree, the higher incomes of self-employed
entrepreneurs are merely compensation for the uncertainties accompanying their business
activities. Third, they have a high investment rate. Self-employed business owners often
channel a large share of their income into the growth and expansion of their business. Fourth,
they generally love what they do and therefore work long hours.
It should be noted that in the countries of Central and Eastern Europe (CEE) and the
former Soviet countries, rates of small business ownership vary significantly by country and
region within countries. This may reflect government policies along with cultural attitudes that
influence the ability to start an independent However, having an entrepreneurial
attitude will be useful under all circumstances.
Employees, too, can adopt the characteristics that contribute to the high-income status
and wealth of self-employed entrepreneurs. They can invest their savings in stocks and thereby
achieve the above-average returns that can come with the risk of business ownership. If they
desire, they can also generate more income and accumulate more wealth through higher rates
of investment and more hours of work.
Perhaps most important, employees can gain by “thinking like entrepreneurs.” Just as
the incomes of business entrepreneurs depend on their ability to satisfy customers, the earnings
of employees depend on their ability to make themselves valuable to employers, both current
and prospective. If employees want to achieve high earnings, they need to develop skills,
knowledge, attitudes, and work habits that are highly valued by others.
The entrepreneurial way of thinking is also crucially important when making decisions
about education. Education will not enhance your earnings very much unless you acquire

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knowledge and develop skills that make your services more valuable to others. These include
the ability to write well, communicate with clarity, use basic math tools, and collect and
interpret data and information, as well as specific skills that can set you apart from the crowd
and raise your productivity. Developing skills that make you more valuable to others is vitally
important both in and outside of the brick-and-mortar institutions of secondary and
postsecondary education.
Today, having a university degree is no longer guaranteed to catch an employer’s eye
and result in a ticket to a high-paying job. In 2019, unemployment rates among university
graduates were close to 25% in Armenia and many other post-communist countries.
Employment and educational markets change rapidly. The best way to find a job is to think
entrepreneurially and discover ways to serve others through formal education and showcasing
your job readiness. Massive open online courses, certificate programs, and internships can be
helpful in this area.
Development and use of your talents in ways that provide large benefits to others is a
key to financial success. It is also central to what Arthur Brooks calls “earned success.”
Moreover, earned success is a central element of happiness and life satisfaction. No one can
give you earned success; you must achieve it. Earned success is present when your education,
work, and lifestyle choices reflect the purpose of your life. Throughout our careers, we have
asked our students what they want to do with their lives. In one form or another, the response
is nearly always the same: I want to do things that will make the world a better place to live.
Of course, individuals will differ with regard to how they plan to do so. But, regardless of their
plans, a positive set of attitudes and an entrepreneurial thought process will enhance their
ability to live a meaningful, fulfilling, and happy life.