Low income is relatively common in self-employment, forcing policymakers to consider when, and under what circumstances, they should support struggling entrepreneurs. In this policy brief, we propose a conceptual framework of six key causes of low profit in entrepreneurship. We call upon welfare researchers and policymakers to examine their welfare policies to determine which causes of low income they currently support through income top-ups and to identify gaps in support. As welfare policy for the self-employed has historically been developed as an ‘add on’ to welfare policy for employment, it may be timely to reflect on the social and economic value of somewhat accidental policy positions and to recognise welfare as an important form of entrepreneurial finance.
