Decoding the Key Determinants of Self-Employment in Botswana

Entrepreneurship plays a key role in eliminating unemployment and promoting inclusive economic development, especially in developing countries like Botswana. The determinants of self-employment are analyzed using cross sectional data from the 2015/16 Botswana Multi-Topic Household Survey (BMTHS) and a binary logistic regression model. The key determinants of self-employment include age, citizenship, education level, marital status, and geographical location, which have a significant impact on an individual’s probability of being self-employed. Specifically, older individuals, foreigners, married or widows, and rural dwellers have greater probabilities of being self-employed. The findings also show that individuals with higher education, such as diplomas, job training, and university degrees/other degrees, are negatively correlated with being self-employed, suggesting that the more educated an individual is, the more they prefer wage employment. Also, findings suggest that programs of entrepreneurship need to be diverse by not only focusing on youth but also older people, supporting citizen-owned enterprises, and integrating entrepreneurship training at all education levels. Furthermore, special support should be given to family businesses and rural entrepreneurship development schemes which can encourage more inclusive entrepreneurial growth. Addressing these socio-demographic and spatial disparities by adopting segmented and responsive policies can enhance government efforts at promoting self-employment as a sustainable activity for economic diversification and poverty reduction.