When Automation Hits Jobs – Entrepreneurship as an Alternative Career Path

This study explores the relationship between workplace exposure to automation technologies, notably industrial robots and artificial intelligence (AI), and the inclination toward entrepreneurship. Our findings reveal that individuals in occupations vulnerable to automation are more likely to establish smaller, often less innovative businesses. Specifically, exposure to industrial robots correlates with a shift toward smaller-scale entrepreneurship. However, this trend does not hold for AI exposure, indicating a complex interplay between different types of automation and entrepreneurial tendencies. The study also highlights gender disparities, revealing that women are less likely to pursue entrepreneurship in the face of increasing automation. Additionally, the COVID-19 pandemic appears to have accelerated this shift, coinciding with a surge in the adoption of automation technology. These insights point to the necessity for policy measures to support individuals transitioning from conventional employment to entrepreneurial roles in an automation-driven economic landscape.