Journal of Vocational Rehabilitation 35 (2011) 117–127 117

DOI:10.3233/JVR-2011-0559
IOS Press

The viability of self-employment for

individuals with disabilities in the United
States: A synthesis of the empirical-research
literature
Scott Yamamoto*, Deanne Unruh and Michael Bullis
Department of Special Education and Clinical Sciences, College of Education, University of Oregon, Eugene,
OR, USA

Abstract. The lack of employment opportunities and stable employment for individuals with disabilities continues to pose personal
and societal difficulties and challenges. Moreover, research and government statistics have consistently reported that individuals
with disabilities have lower employment wages and benefits than individuals without disabilities, as well as limited opportunities
for promotion and career advancement. Not surprisingly, individuals with disabilities also experience persistently higher poverty
rates. While much is known in the empirical-research literature about individuals with disabilities who work for someone else,
much less is known about individuals in self-employment. Some anecdotal information suggests that self-employment may be a
way to improve these outcomes.
In the present paper, we reviewed, analyzed, and synthesized the findings of empirical-research studies on self-employment of
individuals with disabilities in the United States. We found that successful self-employment is defined in financial and non-financial
terms and is largely influenced by three factors: individual characteristics, level of supports, and accountability systems. Because
of the small number of U.S. research studies on self-employment, however, our conclusions are tentative. Further empirical
research is needed, focusing especially on long-term outcomes. Implications for researchers, individuals with disabilities, and
other stakeholders are discussed in conclusion.

Keywords: Disabilities, self-employment, employment, vocational rehabilitation

1. Introduction two decades respectively, Newman, Wagner, Cameto,

Knokey, and Shaver [19] found that these two cohorts
Despite a number of federal initiatives, significant of individuals with disabilities, who had exited high
improvements in adult employment outcomes have not school several years earlier, did not differ in employ-
occurred for individuals with disabilities. For exam- ment status, hours worked per week, job duration, or
ple, comparing results from the National Longitudinal average hourly wages [19]. More problematic, perhaps,
Transition Study-1 and the National Longitudinal Tran- is that in a recent national survey by the U.S. Depart-
sition Study-2, which were conducted over the last ment of Labor, only 19.1% of employers reported
hiring individuals with disabilities, and only 13.6%
∗ Address for correspondence: Scott Yamamoto, Department of
reported actively recruiting individuals with disabili-
Special Education and Clinical Sciences, University of Oregon,
ties, with the public sector more likely to actively recruit
Eugene, OR 97403, USA. Tel.: +1 (541) 232 3094; E-mail: and hire individuals with disabilities than the private
[email protected]. sector [10].

1052-2263/11/$27.50 © 2011 – IOS Press and the authors. All rights reserved
118 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States

The disparities in employment outcomes between sis of data on U.S. veterans with service-connected
individuals with disabilities and individuals without disabilities found that computer ownership was corre-
disabilities have been rather stark. The U.S. Census lated with a higher rate of self-employment [21]. Such
Bureau recently reported that 45.6% of individuals with developments have broad implications for stakehold-
disabilities 21 to 64 years of age were employed with ers, including individuals with disabilities, researchers,
median monthly earnings of $1917; whereas 83.5% business community, schools, employment agencies,
of individuals without disabilities in the same-age and non-government organizations. Therefore, in this
group were employed with median monthly earnings of article, we conducted a synthesis of empirical research
$2539. In addition, 27.1% of individuals with “severe” studies to answer the question: “How viable is self-
disabilities and 12.0% with “non-severe” disabilities employment for individuals with disabilities in the
25 to 64 years of age were categorized as “living in United States?”
poverty”; whereas 9.1% of individuals without disabil-
ities in the same-age group were categorized as such
[36]. Unfortunately, these disparities are not a recent 2. Methodology
phenomenon, and individuals with disabilities, from
young to mature adulthood, remain at risk of social The procedures for addressing and answering our
stigma, diminished self-esteem and self-determination, central question comprised three steps: (a) defining
dependence on governmental assistance, and other disability, viability, and self-employment; (b) search-
related persistent challenges and difficulties [13]. ing research databases for literature; (c) selecting and
A growing body of anecdotal information sug- coding the studies to be synthesized.
gests self-employment can be a sustainable answer for
improving employment outcomes of individuals with 2.1. Defining terms
disabilities. According to the U.S. Department of Labor
[39], individuals with disabilities are “. . . nearly twice In this paper, the definition of disability was adopted
as likely to be self-employed as the general population, from a current legal definition used by the U.S. Depart-
14.7 percent to 8 percent.” Over the last two decades, ment of Labor Office of Disability Employment Policy
self-employment has become more prevalent among [38]: “. . . a person with a disability is generally defined
individuals with disabilities due in part to the (a) shift as someone who (1) has a physical or mental impair-
in the U.S. economy from industrial manufacturing ment that substantially limits one or more ‘major life
to a high-technology, information and service-oriented activities’, (2) has a record of such an impairment, or (3)
economy, and (b) philosophy and movement of con- is regarded as having such an impairment.” A dictionary
sumer choice and self-determination in employment for definition of viable is, “Capable of success or continued
individuals with disabilities [9, 22, 26, 30, 31, 40]. Oth- effectiveness; practicable” [1, p. 1502]. In this paper,
ers have surmised that self-employment is appealing viability was similarly defined: capability of success
because it can be less stigmatizing than other employ- or continued effectiveness in self-employment by indi-
ment as it connects the “American Dream” of owning viduals with disabilities. From the U.S. Census Bureau
a business “. . . with the commitment of rehabilitation [35], we adopted the following two-part definition of
professionals, family members, friends, and neighbors self-employed worker:
to assist people with disabilities in achieving typical
• Self-employed in own not incorporated business
lives” [11, p. 2].
workers. Self-employed in own not incorporated
The two recessions that book-ended the last decade
business workers includes people who worked for
mark a continuing evolution of the globalized U.S.
profit or fees in their own unincorporated business,
economy. As traditional wage and salary employment
professional practice, or trade or who operated a
is being redefined, emerging markets could expand
farm.
opportunities for self-employment. Economic changes
• Self-employed in own incorporated business
have also been inextricably linked to technological
workers. In tabulations, this category is included
advances, which have not only spurred innovation
with private wage and salary workers because they
such as digital-wireless communications and social-
are paid employees of their own companies.
networking media, but also the growth of internet
commerce, which may ameliorate self-employment The aforementioned definitions are applicable in this
barriers related to disability. For example, an analy- paper because they come from the same government
 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States 119

sources that were used and cited for statistics such as loans; and (c) legal factors, such as laws and regulations
poverty rates and income. for Workforce Investment and vocational services that
support self-employment. To derive an answer for the
2.2. Searching research databases central question of the viability of self-employment for
individuals with disabilities in the U.S., then, we sought
The search began in three large research databases: to obtain the strongest research evidence, which comes
Academic Search Premiere, ERIC, and PsychInfo. from published peer-reviewed empirical research stud-
These databases are the largest sources of published ies [16].
research in the social sciences. Using the terms dis- The process of coding the selected studies com-
abilities and self-employment, we limited the search prised the following steps. The first author completed
to English-language, peer-reviewed publications. Thus, multiple readings of each selected study’s research pur-
we excluded encyclopedias, newspapers, magazines, pose and method, noting the (a) research questions
theses and dissertations, and practitioner and trade or specific hypotheses to be tested; (b) unit of analy-
papers. No date limit was placed on the search to ensure sis and participants’ background; (c) research design,
historical breadth. This first search yielded 29 listings whether experimental or non-experimental; and (d) data
in Academic Search Premiere, 21 in ERIC, and 5 in collection and measurement, such as qualitative inter-
PsychInfo. Duplicate listings were discarded. viewing with narrative analysis, or quantitative survey
Because the topic of self-employment is interdisci- with statistical analysis. Next, the first author com-
plinary, we sought to ensure a comprehensive search. pleted multiple readings of the descriptions of research
Therefore, we searched two additional databases, results/findings and limitations, noting (a) outcomes
Business Source Premiere/Econ-Lit and Sociological such as statistical significance and effect size of quanti-
Abstracts. Using the initial search terms and limi- tative data, or emergent themes of qualitative narrative
tations, this search yielded 17 listings in Business data; (b) discussion of results/findings; and (c) limita-
Source Premiere/Econ-Lit and 12 listings in Sociolog- tions, conclusions, and implications for research and
ical Abstracts. These listings were compared to the practice. A summary of all the selected empirical-
initial search and duplicates were eliminated. In some, research studies is presented in Table 2.
the terms entrepreneurship and microenterprise were The first author also completed multiple readings of
used synonymously for self-employment. Therefore, we the remaining literature, noting and organizing major
conducted another search of the same five databases points or themes. This set of other literature from
using the two new terms along with the original terms the search process included international studies, U.S.
and limitations. Then, we conducted a search using and international non-research policy papers, opin-
names of authors that appeared across multiple list- ion/position papers, and summary/review articles or
ings for additional non-duplicate sources. Finally, as documents on self-employment of individuals with dis-
background information, we obtained employment and abilities. These articles, documents, and papers would
related prevalence data, such as income and wealth, serve a secondary role in our synthesis, providing rel-
from websites of the U.S. Department of Labor and evant context and suggestions for further analysis. A
the U.S. Census Bureau. Our entire search process is summary of this literature is presented in Table 3.
summarized and presented in Table 1. Throughout the coding process, the second and third
authors evaluated the first author’s coding for accuracy.
2.3. Selecting and coding studies Full inter-observer agreement (i.e., 100% agreement)
on the coding among all three authors was estab-
Upon completing the literature search process, we lished before proceeding to the synthesis of the selected
selected and sorted the literature as U.S. empirical studies.
research studies and other literature. This approach
ensured our focus for this paper was solely on U.S.
empirical research studies, and not synthesizing U.S. 3. Findings
and international empirical studies because of funda-
mental differences in (a) cultural factors, such as the A small number of U.S. empirical-research stud-
promotion of the American “entrepreneurial spirit” and ies (n = 12) met our selection criteria. The relatively
the virtues of owning a small business; (b) economic inchoate studies – since 1994 – were exploratory in
factors, such as the availability of capital and business focus and descriptive (i.e., neither predictive nor causal)
120 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States

in their report of results, which included qualitative dents is a top priority, even as they face the prospect
and quantitative outcomes. Every study used a non- of only making enough to supplement other income
experimental research design, with particular focus on from government assistance or other employment that
the unit of analysis, the self-employment perspectives they already currently have [12, 18]. Others may have a
of either (a) individuals with disabilities, or (b) service more ambitious goal and plan not just to sustain or main-
professionals, such as vocational-rehabilitation (VR) tain but expand their business [7, 12]. Self-employment
counselors. benefits can also be more intrinsic or intangible, such
as having a decision-making role, sense of dignity, per-
3.1. Individuals’ perspectives of self-employment sonal control, personal competence, work autonomy,
self-worth, self-reliance, enjoyment of work, a way to
Across the selected studies that examined self- meet personal expectations, and work toward changing
employment from the perspectives of individuals with societal attitudes about individuals with disabilities [12,
disabilities, predominant emergent themes included 18].
reasons for self-employment, benefits and challenges A primary challenge in self-employment is the access
of self-employment, and support in self-employment. to adequate capital and financing for funding a business,
extending beyond individual and family resources.
3.1.1. Reasons for self-employment While this problem is certainly not unique to individu-
The reasons individuals with disabilities pursue self- als with disabilities, their access to necessary business
employment are diverse and vary in complexity. For capital and financing from conventional sources, such
some, self-employment is a response to the discrimi- as commercial banks, has been almost as difficult as
nation they faced in losing employment or struggling it has been historically for women and ethnic-minority
to gain employment [7], or to the lack of opportuni- groups [22, 23]. Consequently, individuals with disabil-
ties in other types of employment [12]. For others, ities have relied upon and used a number of alternative
self-employment is partly an answer to previous, unsat- sources of funding, such as community small-business
isfactory employment [18] and a wish to take previous development organizations, vocational rehabilitation
experiences working for others to explore working for and disability-services agencies, and grant programs [7,
themselves [18, 22]. 12, 22].
Individuals with disabilities may choose self- Related to their unique status, individuals with dis-
employment based on a combination of reasons that not abilities face other critical challenges, including (a)
only includes elements of typical business-feasibility perceived or actual reduction in government benefits
assessment, such as resource/support availability and due to the income generated from self-employment, (b)
understanding one’s circumstances, abilities, and societal prejudice, (c) negative public attitudes and low
needs, but also includes nuanced or idiosyncratic ele- expectations, (d) educational barriers in school transi-
ments of risk-taking, such as chance and timing of life tion and vocational programs, (e) technological barriers
events that seems to provide a window of opportunity in the access and use of devices, and (f) funding and
for self-employment at a particular moment [22]. Still policy/regulation barriers in business and personal sup-
for other individuals with disabilities, self-employment ports [8, 18, 23, 26].
may simply be a matter of choice. Funded by the Responding to self-employment challenges may
Rehabilitation Services Administration, the United require different skill-sets based on the nature of
Cerebral Palsy Association’s Choice Access demon- the business, market conditions, and access to sup-
stration project found 21% of participants had chosen ports/resources, regardless of an individual’s disability
self-employment. Although not based on empirical- status. The level of challenges, however, may be
research evaluation of the project, a common sentiment related to both the type and severity of an indi-
by participants was, “It’s my choice, it’s what I want to vidual’s disability and certain aspects or contexts of
do” [8, p. 76]. self-employment. For example, in their qualitative
study of eight entrepreneurs with cognitive disabili-
3.1.2. Benefits and challenges of self-employment ties, including seven individuals with mental retardation
Individuals with disabilities can derive a range of and one individual with Traumatic Brain Injury, Hag-
benefits and challenges in self-employment. Financial ner and Davies [12] found the business owners had
benefits are paramount for some, and pursuing financial expressed that the major disadvantages of their self-
independence to support themselves and their depen- employment experience were the labor-intensive nature
 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States 121

and difficulty managing a business, and the diffi- has received financial assistance, remains in stable
culty in receiving necessary services and support. operation, and shows a trend toward profitability” [7,
The businesses either received subsidies or generated pp.1609–1610]. From May 1, 1995 to August 1, 1999,
only enough revenues to cover expenses; the owners case closure was given to 42 individuals: 42 were White,
needed to supplement their income with SSI, Medicaid, 33 were male, 39 had finished high school, 25 owned a
and other jobs. Four of the businesses were operated service-oriented business, and 17 had, as their primary
essentially under the auspices of the disability service- disability, an orthopedic disability, the largest category.
provider agency [12]. These research studies on self-employment focus-
ing on the perspectives of individual with disabilities
3.1.3. Support in self-employment described a range of different entrepreneurial experi-
For individuals with disabilities in the U.S., sup- ences and business ventures: jewelry sales, gift baskets,
port in self-employment has typically meant relying toys and painted wood figures, bulk-mailing service,
on a patchwork of resources, including (a) financial home child-care services, artist, freelance journalist,
assistance from family, disability services and VR party-balloons service, freelance motivational speaker,
agencies, government loans and grants, and commu- software consultant, and web-site developer [7, 12, 18,
nity organizations; (b) personal support and services 22]. These experiences and business ventures not only
from Social Security and other agencies; and (c) indicate a diversity of interests among individuals with
business-related assistance and support from attor- disabilities, but also represent a wide range of talents
neys, accountants, business-development experts, and and abilities across different industries.
computer/information technology consultants and tech- The perspectives of individuals with disabilities
nicians [7, 12, 18, 22]. The availability and accessibility in the U.S. represent one distinct perspective of
of resources to support self-employment remain fore- and answer to the question of the viability of self-
most concerns, which the Iowa Entrepreneurs with employment for individuals with disabilities; the other
Disabilities (EWD) program attempted to address. The comes from service professionals who support these
evaluation of EWD [7] is sui generis in the research individuals.
literature on self-employment of individuals with dis-
abilities in the U.S. and will receive further attention
3.2. Professionals’ perspectives of
and elaboration here.
self-employment
The Iowa Entrepreneur’s with Disabilities (EWD)
was a statewide program to support self-employment
Service professionals who support self-employment
of individuals with disabilities for multiple years by the
of individuals with disabilities can include coun-
Iowa Department of Vocational Rehabilitation Service
selors from vocational rehabilitation (VR) agencies,
(DVRS), Iowa Department for the Blind (IDB), and
experts and consultants from small-business devel-
Iowa Department of Economic Development (IDED).
opment centers (SBDCs), and providers from other
The program recruited 509 residents with disabilities
social-service agencies. From the selected studies that
from across the state. After the participant-selection
examined self-employment from these professionals’
process, 112 individuals who were receiving services
perspectives, predominant emergent themes included
from the DVRS or IDB, were provided financial (typi-
professionals’ attitudes about, roles in, and support for
cally $10.000) and technical assistance to start, expand,
self-employment of individuals with disabilities.
or maintain their business. Individuals were required
to provide at least 50% of needed capital. Technical
assistance included accounting, legal advice, and busi- 3.2.1. Attitudes about self-employment
ness planning and management. When the program A more positive or favorable attitude toward self-
began, most of the participants were receiving less gov- employment by VR counselors has been associated with
ernment assistance than they had during the selection higher case-closures of clients in self-employment [5,
process [7]. 24]. Also, counselors’ attitudes toward self-employ-
Businesses with EWD support were monitored ment tend to be more positive if they have had positive
monthly by the program and required to disclose finan- experiences of clients in self-employment [5, 24].
cial information for two years or until they had reached Agency policies can also affect agency atmosphere and
self-sufficiency. The program defined success as DVRS VR counselors’ attitudes toward self-employment
case closure, which was done if a business “. . . [5, 24].
122 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States

Service region may affect VR counselors’ atti- that a large majority of business ventures fail in their
tudes toward self-employment of clients. For example, first year, and (d) caution that the direction and deci-
Ravesloot and Seekins [24] found in a survey of sion for self-employment not be confused with the
counselors from U.S. rural and urban regions that service provider’s own wish to be a business owner
rural counselors rated self-employment statistically- [8]. These viewpoints may well be rooted in the his-
significantly higher than did urban counselors. Rural tory of supported employment, which rarely included
counselors also were significantly more familiar with self-employment as an outcome of services before the
processes involved in self-employment. The coun- 1990s. When it was, Callahan, Shumpert, and Mast [8]
selors did not significantly differ on most of the noted that self-employment was “. . . largely charac-
ratings of what they believed to be critical attributes terized by either retail businesses developed as a result
for self-employment: enthusiasm, persistence, intelli- of governmentally mandated ‘set-asides’ for persons
gence, risk-taking, business-planning ability, their own with milder impact of disability in their lives (particu-
financial backing, pleasing personality, and good orga- larly from blindness) or in telemarketing of household
nizational and social skills. A statistically-significant goods by persons with more significant physical disabil-
difference was found in the importance of experience ities” [8, p. 76]. Ironically, for individuals with severe
in considering what type of business to own. Urban disabilities, the years of receiving services from vari-
counselors rated this factor to be more important [24], ous agencies and professionals may be contributing to
and expressed greater satisfaction with clients’ employ- their difficulty being as self-directed as they can be in
ment, training, and educational opportunities. Rural self-employment [26].
counselors expressed significantly greater dissatisfac-
tion with transportation options available to clients, 3.2.2. Role in self-employment
but were more satisfied with networking opportunities In recent years, approximately 12% of working indi-
available to counselors [4]. If a problem was identi- viduals with disabilities have earned an income from
fied by both rural and urban counselors, it was usually self-employment [14]. While many of those individuals
perceived worse by rural counselors: “Rural counselors have been supported as clients by VR agency services,
work in situations that are less conducive to achieving since the late 1980 s, the national VR case-closure rates
VR goals” [3, p. 12]. in self-employment generally have remained between
Some researchers have posited that for decades in the 2% and 3% [14, 30]. These rates represent the ratio of
U.S., a core VR philosophy has been to help individu- successful VR case closures in self-employment to the
als with disabilities find wage and salary jobs working total number of VR case closures, which includes other
for others, not self-employment, because counselors types of employment.
are not trained in business development [9, 30]. That Despite the relative stability of the national VR case-
may be changing, however. In examining changes in closure rates in self-employment over the past two
agency policies toward self-employment from 1992 to decades, a recent summary of the “Rehabilitation Ser-
2002, Arnold and Ipsen [2] found, “Current policies vices Administration 911 Closure Reports for Fiscal
are more positive toward self-employment” [2, p. 117]. Years 2003 to 2007” by Revell, Smith, and Inge [25]
On average, more necessary components of self- found noticeable differences in self-employment out-
employment (e.g., market analysis, business plan, and comes among some state VR agencies (50 states and
finding resources) were addressed by policies in 2002, D.C., “General and Combined” VR agencies). In the
which also provided more guidance to counselors on Fiscal Year (FY) 2007, Mississippi had the highest
self-employment initiation and follow-through by coor- self-employment case-closure rate at 12.6%, followed
dinating activities with small business-development by Wyoming at 7.9%, Alaska at 6.6%, and Maine at
professionals than was done in 1992 [2]. 6.0%. Mississippi also had the highest rates across these
Some service professionals in the field of supported fiscal years. Additionally, in FY 2007, the national
employment in the U.S. have deliberately not encour- average-weekly earnings of $396 in self-employment
aged or promoted self-employment for individuals with were higher than the national average-weekly earnings
disabilities with significant disabilities because of (a) of $350 in all Status 26 case closures. By comparison,
fear that individuals would be in a solitary environ- Mississippi averaged $439 weekly in self-employment
ment and socially isolated, (b) concern over not being and $423 from all Status 26 closures, while Connecticut
able to provide adequate information to individuals had the highest average weekly earnings of $896 in self-
about starting and maintaining a business, (c) belief employment and $538 from all Status 26 closures [25].
 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States 123

The role of VR counselors in the self-employment a successful business” [9, p. 38]. They also found, how-
of clients with disabilities may vary by service loca- ever, that professionals admitted knowing little about
tion. For example, Arnold and Seekins [6] found several one another and cited physical and organizational barri-
statistically-significant differences between VR in U.S. ers as discouraging active collaboration; and those with
rural and urban settings: (a) self-employment was used collaboration experience did not characterize their rela-
more commonly in VR case closures in rural settings tionships as active or engaged, citing funding-source
than in urban settings, (b) counselors in rural settings accountability as a barrier [9]. On one side, the reha-
averaged more self-employment closures during their bilitation counselors “. . . expressed apprehension that
careers than counselors in urban settings, and (c) fac- small businesses or self-proprietorships may not lead to
tors of job availability, higher unemployment, slower strong performance on the identified standards and indi-
growth rate, and lower wages contributed to greater cators for which their programs are evaluated” [9, p. 38].
likelihood of self-employment case closures in rural On the other side, experts from small-business devel-
settings [6, 31]. Urban and rural VR counselors did opment centers (SBDCs) expressed concerns that the
not significantly differ in their caseload, level of edu- entrepreneurships of individuals with disabilities were
cation, years as counselor, or access to telephones and smaller and contributing less to their “bottom-line” than
fax machines [3, 4, 6], but rural clients lived signifi- businesses they typically funded [9].
cantly farther from counselors’ offices than did urban For some VR counselors, supporting or enhancing
counselors from their clients [4]. self-employment success entails aligning clients’ indi-
vidualized needs and reasons for self-employment, such
3.2.3. Support for self-employment as (a) increasing self-confidence and engaging in work
Service professionals have cited financial costs of that is meaningful, (b) increasing self-sufficiency and
services and agency resources as important mediators income, (c) resolving concerns over accommodations
of their support for self-employment of clients with and mobility, (d) increasing control over scheduling
disabilities. In their qualitative research study, Colling and amount of work, and (e) greater community inclu-
and Arnold [9] found that professionals in the focus sion and participation [40]. Hagner and Davies [12]
group interview “. . . cited budgetary constraints, lim- have recommended VR counselors receive basic train-
ited personnel, and diminishing resources as a reality ing in self-employment to help clients make informed
of service delivery today” [9, p.38]. VR counselors’ employment choices and (a) understand how self-
decision to support self-employment may also be influ- employment can benefit individuals with disabilities,
enced by their consideration of “. . . how long such (b) recognize the types of supports needed to succeed
placements last compared to others, the comparative in self-employment, and (c) identify reasons for choos-
return on investment, the levels of income produced by ing self-employment over other available employment
each placement type, or consumers’ comparative sat- options [12].
isfaction” [5, p. 17]. Others have expressed concerns Incorporating elements of person-centered-planning
that VR counselors are neither adequately trained nor may help service professionals support clients in self-
equipped to provide resources and support to clients employment [26]. This approach typically involves
in self-employment [12], while also cautioning that recognizing clients’ strengths and skills, around which
counselors’ final decision to support self-employment a number of external (e.g., technical legal, or account-
desires and goals might be based more on their assess- ing), organizational (e.g., advisory councils, co-ops),
ment of clients’ disability condition rather than on and other personal supports are built. In addition, pro-
relevant business-related factors [26]. fessionals may want to discuss with clients certain
For service professionals and agencies facing contextual factors such as (a) understanding individ-
resource constraints in service provision, multi-agency ual circumstances, abilities, and needs; (b) evaluating
collaboration may provide a way of pooling expertise assumptions about self-employment; and (c) recogniz-
and finances to support self-employment of individ- ing actual, available support and training resources [22].
uals with disabilities, albeit not without obstacles Ultimately, as Arnold and Ipsen [2] assert, “There is no
or challenges. For example, based on their focus- cookie-cutter method for achieving a self-employment
group interview, Colling and Arnold [9] asserted outcome. Each agency’s policy and set of opera-
that interagency collaboration of service professionals tional procedures are unique, reflecting the state’s fiscal
“. . . could provide direct results for clients such as constraints and its approach to self-employment” [2,
entrepreneurship training and increased probability of p. 117].
124 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States

4. Discussion The empirical research studies that examined

self-employment from the perspectives of service pro-
Next, we discuss our findings to answer the ques- fessionals, particularly those of VR counselors, reveal
tion of viability of self-employment for individuals with interesting juxtapositions. While agencies policies and
disabilities in the U.S., as well as acknowledge the lim- counselors now generally have a more favorable view of
itations of our literature synthesis. We conclude with clients’ self-employment than in the past, they are nei-
the implications of our paper for stakeholders and rec- ther less cautious nor less concerned about the financial
ommendations for research and practice. costs of service provision and agency accountability
for outcomes. Also, they emphasize the importance of
4.1. Viability of self-employment interagency collaboration to share expertise and limited
resources to support clients, but admit agency barriers
From analyzing the selected studies, we have found have curtailed active or engaged collaboration. Some
that (a) researchers have examined self-employment of contend that in the U.S., the core VR philosophy of
individuals with disabilities from the perspectives of helping clients attain wage and salary jobs, and not
individuals and service professionals, and (b) success self-employment, remains fundamentally unchanged;
in self-employment appears to be influenced most by and that VR counselors really need training in self-
three factors, which are personal characteristics, level employment to effectively support clients [12]. That
of supports, and accountability systems. core VR philosophy appears to be yet another facet
Among the few studies that examined the self- of accountability systems that affects self-employment
employment perspectives of individuals with disabil- level of supports and case closure. Perhaps not sur-
ities, the evaluation of the Iowa EWD program by prisingly, self-employment rates have been higher for
Blanck, Sandler, Schmeling, and Schartz [7] is unique individuals with disabilities outside the VR system
for its breadth and depth. The study suggests that [23].
certain characteristics of individuals with disabilities Notable among the selected studies examining ser-
may predict VR self-employment case closure: white, vice professionals’ self-employment perspectives was
male, more than a high-school education, and with finding the statistically-significant differences between
a less-severe disability. The study also suggests that two groups of VR counselors. Those in rural areas
a comprehensive empirical research on the viability of the U.S. had more self-employment case closures
of self-employment for individuals with disabilities and expressed more positive views of self-employment
is best conceptualized as a developmental process. than did their counterparts in urban areas, citing neg-
Thus, a long-term view of self-employment viability ative economic conditions of rural areas as a major
is ideal, recognizing not only the need to carefully reason for the higher case closures [6, 24]. These
consider and study a complex array of factors affect- findings seem congruent with a recent analysis [25],
ing self-employment outcomes, but also to properly which found that in a number of predominantly rural
understand how the effects of those factors can differ states, including Mississippi, Wyoming, Maine, and
significantly across individuals and change over time. Alaska, self-employment case-closure rates have been
For instance, while accepting that time can be a con- much higher than the average national rates for sev-
founding factor in any developmental process, the level eral years. While the differences among states were
of supports in self-employment could differ based on not statistically analyzed for significance, these find-
individual characteristics such as ethnicity and gender, ings nevertheless suggest that cost-effective VR service
such that ethnic-minority females with disabilities may provision does not preclude self-employment as an
experience different levels of support over time than outcome. Faced with particular economic conditions
white males with disabilities. In addition, the effects in rural areas, such as chronically limited employ-
of accountability systems can also differ based on VR ment options and job openings, rural VR counselors
agency policies, which can be significantly different may be more frequently compelled to take a service
across U.S. states. Other facets of accountability sys- approach requiring greater service flexibility and client
tems, such as local market competition and overall self-sufficiency, while also trying to remain aligned
economic conditions, can also affect self-employment with agency policies and goals. This also could be a cir-
success or the degree to which the levels of support in cumstance where facets of accountability systems are
self-employment change. disproportionately influential.
 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States 125

4.2. Limitations tion and analytic methods that ultimately could improve
our understanding of how individuals with disabilities
The primary limitation of this literature synthesis can sustain self-employment success over time.
is the small number (N = 12) of U.S. empirical stud- Moving forward, researchers should empirically
ies that met the selection criteria. Certainly, no causal examine self-employment viability as a developmental
inferences or broad generalizations can be made from process, which will necessitate conducting longitudinal
our findings. The fact that constraints are present in studies. Conceptualizing self-employment viability as a
any research study, though, does not explain why only developmental process focuses the research on changes
a small number of U.S. empirical studies have been that occur across time. An accumulation of such stud-
conducted on the topic and only since the mid-1990 s. ies will add to our understanding of the factors that
This becomes readily apparent when one searches the lead to sustained self-employment success and its via-
research literature and finds that a much greater number bility for individuals with disabilities. The next major
of U.S. empirical studies during the last two decades methodological step will be to test specific effects of
have been conducted on individuals with disabilities a program or an intervention on self-employment out-
in other types of employment, such as supported and comes across comparison groups of individuals with
competitive-wage employment working for others. disabilities over time. This would allow for broader
Another limitation of this article is the exclusion of research generalizations. Eventually, with a substantial
non-U.S. empirical studies. Particularly compelling are number of empirical studies, researchers may be able
studies from international development that have exam- to conduct meta-analyses and develop theories.
ined microfinance programs [11, 30]. These programs Future empirical studies should also examine the
typically provide small loans to fund new business impact of new internet technology and social net-
ventures with five or fewer employees [11, 30, 40]. working media on the viability of self-employment for
Individuals with disabilities in developing countries, individuals with disabilities. For example, researchers
especially from impoverished rural communities, have could examine the relationship between factors of
had success in microfinance ventures. Evaluations of accessibility and usability of internet technology and
these programs have described success not only in self-employment outcomes; and make comparisons
terms of poverty alleviation, self-sufficiency, and skill- across different types of business ventures and with
development, but also in terms of self-determination, traditional wage/salary employment. In all instances,
self-worth, and a sense of community [17, 20, 28]. empirical research should strive to accumulate valid and
reliable evidence over time through rigorous empirical
4.3. Implications for research and practice research design, data collection, and analysis [33].

The tentative indications that individuals with dis- 4.3.2. Implications for practice
abilities can succeed in self-employment under certain Although the Iowa EWD program was an example
conditions involve a number of stakeholders. Thus, of the unique role of government in supporting individ-
the viability of self-employment is an important issue uals with disabilities in self-employment, its stringent
for individuals with disabilities, researchers, the busi- selection process with a substantial capital requirement
ness community, government agencies (e.g., VR), may have limited its potential impact, which also under-
non-governmental organizations, and schools. The scores a persistent significant financial barrier. Thus,
implications for research and practice are discussed in state and federal government agencies could expand
turn. their support of self-employment for individuals with
disabilities through the establishment of microfinance
4.3.1. Implications for research development funds outside the VR system.
The small number of U.S. empirical studies sug- Microenterprise programs in the U.S. have had
gests research challenges ahead, but also opportunities. a mixed history of success. For example, Amer-
Empirical research of the viability question likely will icans with Community Cooperation (ACCION) in
continue to encounter methodological challenges, start- 1998 reported an increase in income for individ-
ing with how self-employment success can best be uals who started a microenterprise with financial
defined and assessed. In that space, however, will exist a assistance [40]. Elsewhere, analyses of Unemploy-
certain degree of research freedom to refine data collec- ment Insurance Self-Employment Demonstration and
126 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States

Self-Employment Investment Demonstration programs catalyst for expanding work opportunities and improv-
concluded that these types of programs help the poor, ing outcomes for individuals with disabilities. Our
but not in large numbers [28]. Moreover, those who analysis and synthesis of U.S. empirical-research stud-
were helped or succeeded were typically not the poorest ies from the professional literature represents one of –
or least educated. Schreiner and Woller [29] posit that, what is sure to be – many steps to follow in answer-
due to cultural factors, microenterprise programs in the ing the question: How viable is self-employment for
U.S. face much more difficulty than those in devel- individuals with disabilities in the United States?
oping countries. A major caveat about these analyses,
however, is that those microenterprise programs did not
include participation by individuals with disabilities. References
Increasing cross-training of government service-
agency personnel also may produce more frequent and [1] The American Heritage College Dictionary (3rd ed.), New
effective interagency collaboration [9]. For example, York: Houghton Mifflin Company, 2000.
anecdotal monitoring and evaluation of phone calls [2] N.L. Arnold and C. Ipsen, Self-employment policies: Changes
through the decade, Journal of Disability Policy Studies 16
to the Small Business and Self-Employment Service (2005), 115–122.
(SBSES), which provides information, referrals, and [3] N.L. Arnold and T. Seekins, Rural and urban vocational
counseling about self-employment for individuals with rehabilitation: Counselors perceived strengths and problems,
disabilities, indicated that current systems are probably Journal of Rehabilitation Jan/Feb (1998), 5–13.
[4] N.L. Arnold and T. Seekins, A comparison of vocational
insufficient to support individuals with disabilities who rehabilitation counselors: Rural and urban differences, Reha-
want to become self-employed [40]. Unfortunately, bilitation Counseling Bulletin 41 (1997), 2–14.
many of the callers had expressed frustration with VR [5] N.L. Arnold and T. Seekins, Self-employment as a vocational
and the Social Security Administration for not taking rehabilitation closure: An examination of state policies, in:
Self-Employment in Vocational Rehabilitation: Building on
full account of their employment and other needs during Lessons from Rural America, N.L. Arnold, ed, Missoula: Uni-
service provision. Collecting and using such informa- versity of Montana, Research and Training Center on Rural
tion in evaluating agency policies and training service Rehabilitation Services, Rural Institute on Disabilities, (1996),
personnel would help build effective and efficient sup- 11–24.
[6] N.L. Arnold and T. Seekins, Self-employment as a vocational
port systems for their clients in self-employment. rehabilitation employment outcome in rural and urban areas,
Lastly, schools can play a major role in preparing Rehabilitation Counseling Bulletin 39 (1995), 94–105.
students with disabilities to explore self-employment [7] P.D. Blanck, L.A. Sandler, J.L. Schmeling and H.A. Schartz,
The emerging workforce of entrepreneurs with disabilities:
in adult life. For example, students’ required transi-
Preliminary study of entrepreneurship in Iowa, Iowa Law
tion plan in their Individualized Education Program Review 85 (2000), 1583–1661.
(IEP) could include relevant coursework and experi- [8] M. Callahan, N. Shumpert and M. Mast, Self-employment,
ential opportunities, such as school-year internships or choice, and self- determination, Journal of Vocational Reha-
bilitation 17 (2002), 75–85.
summer mentorships similar to the “Partners for Youth [9] K. Colling and N. Arnold, A qualitative analysis of the potential
with Disabilities – Young Entrepreneurs Project” in for collaboration between vocational rehabilitation agencies
Boston [34]. Collaboration between schools and busi- and small business developers, Journal of Applied Rehabilita-
nesses are necessary, and concrete post-school planning tion Counseling 38(2) (2007), 35–41.
[10] C. Domzal, A. Houtenville and R. Sharma, Survey of Employer
must be a priority. Perspectives on the Employment of People with Disabilities:
Technical Report (Prepared under contract to the Office of Dis-
ability and Employment Policy, U.S. Department of Labor),
5. Conclusion McLean, VA: CESSI.
[11] C. Griffin and D. Hammis, Making selef - Employmeent Work
for People with Disabilities (3rd Printing), Baltimore: Paul H.
The modern U.S. economy is globalized and con- Brookes Publishing Co., 2008.
tinues to evolve, which was underscored by the two [12] D. Hagner and T. Davies, Doing my own thing: Supported
recessions that book-ended the last decade. Traditional self-employment for Individuals with cognitive disabilities,
Journal of Vocational Rehabilitation 17 (2002), 65–74.
wage and salary employment is also changing and [13] B. Hernandez, M.J. Cometa, J. Velcoff, J. Rosen, D. Schober
being redefined. Advances in computer and smart- and R.D. Luna, Perspectives of people with disabilities on
phone technology, in particular, are broadening our employment, vocational rehabilitation, and the Ticket to Work
program, Journal of Vocational Rehabilitation 27 (2007),
view of commerce; and the new social networking
191–201.
media are revolutionizing peer-to-peer and niche mar- [14] C. Ipsen, N.L. Arnold and K. Colling, Self-employment for
keting. In the 21st century, self-employment can be a people with disabilities: Enhancing services through intera-
 S. Yamamoto et al. / The viability of self-employment for individuals with disabilities in the United States 127

gency linkages, Journal of Disability Policy Studies 15 (2005), [28] M. Schreiner, Self-employment, microenterprise, and the poor-
231–239. est Americans, Social Service Review, December (1999),
[15] E. Kendall, N. Buys, J. Charker and S. MacMillan, Self- 496–523.
employment: An under-utilised vocational rehabilitation [29] M. Schreiner and G. Woller, Microenterprise development pro-
strategy, Journal of Vocational Rehabilitation 25 (2006), grams in the United States and in the developing world, World
197–205. Development 31(9) (2003), 1567–1580.
[16] F.N. Kerlinger and H.B. Lee, Foundations of Behavioral [30] K. Schriner and J. Neath, Self-employment for people with
Research (4th ed.), United States: Thomson Learning, Inc., disabilities: A preliminary analysis of Arkansas VR closures
2000. and an examination of the microenterprise model for promot-
[17] C. Lewis, Microfinance from the point of view of women with ing economic self-sufficiency and social change, in G. Perlman
disabilities: Lessons from Zambia and Zimbabwe, Gender and and C.E. Hansen, eds, The Entrepreneur with a Disability: Self-
Development 12(1) (2004), 28–39. Employment as a Vocational Goal, A report on the 19th Mary
[18] D. McNaughton, G. Symons, J. Light and A. Parsons, “My E. Switzer Memorial Seminar, 1996.
dream was to pay taxes”: The self-employment experiences of [31] T. Seekins, Rural and urban employment patterns: Self-
individuals who use augmentative and alternative communica- employment as a metaphor for rural vocational rehabilitation.
tion, Journal of Vocational Rehabilitation 25 (2006), 181–196. Missoula: University of Montana, Rural Institute on Disabili-
[19] L. Newman, M. Wagner, R. Cameto, A-M. Knokey and D. ties, 1992.
Shaver, Comparisons Across Time of the Outcomes of Youth [32] T. Seekins and N. Arnold, Self-employment and economic
With Disabilities up to 4 Years After High School, A Report leadership as two promising perspectives on rural disability
of Findings From the National Longitudinal Transition Study and work, Work 12 (1999), 213–222.
(NLTS) and the National Longitudinal Transition Study-2 [33] W.R. Shadish, T.D. Cook and D.T. Campbell, Experimental
(NLTS2) (NCSER 2010–3008) Menlo Park, CA: SRI Inter- and quasi-experimental designs for generalized causal infer-
national, 2010. ence, New York: Houghton Mifflin, 2002.
[20] L.V. Niekerk, T. Lorenzo and P. Mdlokolo, Understanding [34] R. Snowden, Partners for youth with disabilities, American
partnerships in developing disabled entrepreneurs through par- Rehabilitation Autumn (2003), 36–41.
ticipatory action research, Disability and Rehabilitation 28 [35] United States Census Bureau, Question and Answer Cen-
(2006), 323–331. ter: Self-Employed Worker, Retrieved August 20, 2009 from
[21] Open Blue Solutions, Self-employment in the veteran and http://ask.census.gov/.
service-disabled population, Report for the Small Business [36] United States Census Bureau, Americans with disabilities:
Administration, Office of Advocacy (2007), 1–42. 2005 – Household Economic Studies, (Current Population
[22] C. Palmer, K. Schriner, Y. Getch and D. Main, Working Reports by Matthew W. Brault). Retrieved June 1, 2009 from
for yourself: How people with disabilities choose self- http://www.census.gov/prod/2008pubs/p70-117.pdf.
employment, Journal of Applied Rehabilitation Counseling [37] United States Census Bureau, Current Population Survey,
31(3) (2000), 30–37. Annual Social and Economic Supplement, PINC-08 Source
[23] President’s Committee on employment of people with disabil- of Income in 2007 – People 15 Years Old and Over, By
ities, Getting down to business: A blueprint for creating and Income of Specified Type in 2007, Age, Race, Hispanic Ori-
supporting entrepreneurial opportunities for individuals with gin, and Sex, RetrievedOctober 1, 2008 from http://pubdb3.
disabilities, Washington, D.C., 2000. census.gov/macro/032008/perinc/new08 001.htm.
[24] C. Ravesloot and T. Seekins, Vocational rehabilitation [38] United States Department of Labor, Office of Disabil-
counselors’ attitudes toward self-employment outcomes, ity Employment Policies, Frequently Asked Questions,
Rehabilitation Counseling Bulletin 39 (1996), 189–205. Retrieved September 30, 2009 from http://www.dol.gov/
[25] G. Revell, F. Smith and K. Inge, An analysis of self- odep/faqs/federal.htm.
employment outcomes with the federal/state vocational [39] United States Department of Labor, Office of Disability
rehabilitation system, Journal of Vocational Rehabilitation 31 Employment Policies, Entrepreneurship: A flexible route to
(2009), 11–18. economic independence for people with disabilities, Retrieved
[26] D.C. Rizzo, With a little help from my friends: Supported November 7, 2007 from http://www.dol.gov/odep.
self-employment for people with severe disabilities, Journal [40] R.T. Walls, D.L. Dowler, K. Cordingly, L.E. Orslene and J.D.
of Vocational Rehabilitation 17 (2002), 97–105. Greer, Microenterprising and people with disabilities: Strate-
[27] F.R. Rusch and C. Hughes, Historical overview of supported gies for success and failure, Journal of Rehabilitation 6(2)
employment, in F.R. Rusch, ed., Supported Employment: Mod- (2001), 29–35.
els, Methods, and Issues Sycamore: Sycamore Publishing Co.,
1990.
Copyright of Journal of Vocational Rehabilitation is the property of IOS Press and its content may not be copied
or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission.
However, users may print, download, or email articles for individual use.