NEW RESEARCH | Self-employed people feel better than employees – or do they?

There is a persistent belief that self-employed people are better off than employees. That they are freer, happier and more satisfied with their jobs. But is this true?

Although the self-employed play an important role in the Swedish economy, research on the group’s health and well-being has been severely limited. But now Louise Bergman at the Department of Psychology, Stockholm University, has studied this in her doctoral thesis.

– I used the World Health Organization’s broad definition of health, which is about more than not being sick. Mental health has been the focus, and both negative and positive aspects have been examined – from stress and exhaustion to joy, meaning and engagement, she says.

The study is based primarily on data from SLOSH – a large Swedish survey on work and health. Unlike many previous studies, where the self-employed are often excluded because they are considered to deviate from the norm, Louise Bergman has studied them as a separate group. And the results are surprising.

– Contrary to the common perception that the self-employed are better off than those who are employed, we see no major differences in mental health between the groups.

Self-employed – a heterogeneous group

But one of the most important conclusions of the thesis is precisely that it is not possible to talk about self-employed people as a group.

– We should bear in mind that there is a wide variety within the self-employed group – from freelance performing artists, hairdressers and taxi drivers – to owners of large listed companies. Generalizing about the self-employed is therefore misleading.

One of the sub-studies identified four different health profiles among the self-employed. Three of these described people who were well, but in different ways: for example, relaxed, satisfied and low mental health. The fourth profile stood out – it consisted of people who were exhausted and dissatisfied with work.

– It’s important to understand that while many self-employed people are doing well, there is a group that is really struggling. That picture is often missing from the debate. We have not studied which group is struggling the most, but I hope to be able to take a closer look at that in a next step, says Louise Bergman.

Freedom more important than type of employment

Another finding that adds nuance to the picture concerns what actually affects well-being at work. A sub-study of the doctoral thesis focused on highly skilled self-employed workers – such as architects and IT consultants – and compared their experiences with employees in similar professions.

– It clearly showed that it is not the type of employment per se that determines how well you feel or how engaged you feel in your work. Rather, it is the content of the tasks and the degree of freedom to organize their work.

In other words, it’s not necessarily better to be your own boss – but it can be better for your health and well-being to have control over your job than not.

Research shows that health can change over time, especially when starting or leaving self-employment. Those who have just started a business tend to be more relaxed and satisfied, while those who have finished their business could feel both better and worse.

– This is most likely due to the fact that they have stopped being self-employed. Despite this, the health of most self-employed people was relatively stable over time, says Louise Bergman.

Contributes a lot – but also needs support

Self-employed people make up around a tenth of the workforce in Sweden, but their contribution to the economy is much greater than that. They create new jobs and innovations and are important in driving economic development forward. But this also means that their health is a societal issue.

– We need to be better at seeing this group, not just as economic engines, but as people with varying conditions and needs. It is about creating sustainable conditions for those who choose to run their own business.

The research project contributes new knowledge that can form the basis for future interventions, policy development and further research. Above all, the results show that we need to nuance our picture of entrepreneurial life.

– Being self-employed is neither a guarantee of happiness nor a recipe for burnout. It’s complex, and we want to make that visible, says Louise Bergman.

Contact louise.bergman@psychology.su.se

More about the thesis
Louise Bergman will defend her thesis at the Department of Psychology, Stockholm University, on May 15, 2025 with the thesis Health of self-employed workers: Capturing heterogeneity, complexity, and temporal patterns.