The entrepreneur is at the same time one of the most intriguing and one of the most elusive characters …in economic analysis. He has long been recognised as the apex of the hierarchy that determines the behaviour of the firm and thereby bears a heavy responsibility for the vitality of the free enterprise society. (Baumol, 1968, p. 64)

Self-employment is unquestionably the oldest way by which individuals offer and sell their labour in a market economy. At an earlier time, it was also the primary way. Despite this history, its principal features and the characteristics that differentiate self-employment from wage and salary employment have attracted the attention of only a handful of students of the labour market. (Aronson, 1991, p. ix)

Entrepreneurship is increasingly in the news. Governments all over the world extol its benefits and implement policies designed to promote it. There are several reasons for this interest in, and enthusiasm for, entrepreneurship. Owner-managers of small enterprises run the majority of businesses in most countries. These enterprises are credited with providing specialised goods and services that are ignored by the largest firms. They also intensify competition, thereby increasing economic efficiency. Some entrepreneurs pioneer new markets for innovative products, creating new jobs and enhancing economic growth. In a few cases, today's small owner-managed enterprises grow to become tomorrow's industrial giants. Even those that do not may create positive externalities, like the development of supply chains that help attract inward investment, or greater social inclusion.