Global Entrepreneurship Monitor (GEM) for the DR shows that more than half of this group have total incomes below forty thousand pesos per month
Most of the ventures are financed with their own capital within the FFF (friends, family and fools) concept, since the first resource to pay for the new business comes from savings, as well as loans from friends, family and/or colleagues. .
The data is contained in the third edition of the Global Entrepreneurship Monitor (GEM) for the Dominican Republic, sponsored by the Ministry of Industry, Commerce and Mipymes, with the support of the National Association of Young Entrepreneurs (ANJE) and Barna Management School.
An important aspect that the GEM shows is related to the income of the families of the self-employed, since more than half of this group have total incomes of less than forty thousand pesos per month, validating the need for self-employment to guarantee their livelihood.
He adds that when characterizing these groups according to their employment situation before the covid-19 pandemic and at the time of the survey, some differences are found between new entrepreneurs and new self-employed.
It indicates that these non-significant differences correspond to the fact that nascent or new entrepreneurs consider themselves employed by their own businesses and only a minority seek employment or study. Meanwhile, the new independents are, in a greater proportion, self-employed or looking for a job.
He adds that in both groups it is important to highlight that before the pandemic their situation was different, since to a lesser extent they were employed, looking for a job or were self-employed, corroborating that the complex situation triggered their initiative to become self-employed or undertake.
Likewise, that the new self-employed Dominicans differ in their behavior compared to those that correspond to OECD countries, since the former do everything possible to find income alternatives, while the latter, who correspond to 15 percent of the labor force, opt for the subsidies of Government.
“In the previous section, the differences between an entrepreneur and an independent worker were explained and characterized, in order to measure the real base of entrepreneurs by sector to quantify the level of support required in the entrepreneurial environment,” says the GEM.
He emphasizes that this aspect is very important to identify if the type of business included in this analysis corresponds to a nascent microenterprise or to a form of income under the figure of self-employment, the latter being one of the few subsistence options for many unemployed by effect of the covid 19 pandemic.
