Micro-Entrepreneurs’ Health Strategies During and Beyond the COVID-19 Pandemic

1.1 Gender Characteristics of Entrepreneurship and Micro-Entrepreneurs’ Social Location

The main research lens of this paper is to reflect on the context in which micro-entrepreneurs’ choices in safeguarding against sickness are made. We build on feminist critiques (e.g. Ahl & Marlow, 2012) of the seeming gender neutrality of the entrepreneurship discourse, which effectively justifies gender inequalities. These authors also argue that entrepreneurship is a masculine concept (Ahl, 2006) associated with stereotypical masculine traits such as independence, profit orientation, and strength/performance (Ahl, 2006), whereas sickness is viewed as a “weakness” (Giazitzoglu & Down, 2017). Masculinity in entrepreneurship is viewed as invisible, permanent, universal (Bruni et al., 2004), and preferable to femininity (Ogbor, 2000). Women are viewed as different or inferior, and their experiences are systematically ignored. Paradoxically, then, to become successful entrepreneurs, women must emulate the masculine model (seek profit or business expansion). At the same time, to succeed as women, they must meet femininity-based expectations (e.g. by assuming the caregiver’s role in their home) (Ahl & Marlow, 2012). Yet it is almost impossible to succeed in both domains. The feminist critique is also directed against the dominant individualised lens, which ignores the social or gender contexts shaping the position of entrepreneurs, including a persistently gender-unequal distribution of work and family roles (Marlow, 2014).

Therefore, we focus on micro-entrepreneurs’ social location and how it shapes their making and interpreting choices of strategies and concrete practices for safeguarding against their sickness. Indeed, the concept of social location (Zavella, 1991) shows us that individual interpretations of identity, experience, and life opportunities are shaped by the social spaces in which the individual resides. Potentially determined by the intersection of one’s gender, social, economic, and/or geographic positions, those spaces indicate social inequalities and reflect power relations (Zavella, 1991). For this reason, we decided to focus analytically on potential interweaving between these categories found in the narratives. The concept of social location points to similarities and differences in experiences not only between men and women but also within these categories. Social location is a source of opportunities as well as barriers (Křížková et al., 2018). In this text, we specifically explore which factors of social location shape the micro-entrepreneurs’ decision-making processes and choices of strategies and practices in safeguarding against sickness. In the analysis, we describe the factors of social location that have proved to be the most important for our communication partners. The various factors of social location influence each other, and their interaction is constantly strengthened or weakened in the contexts in which micro-entrepreneurs operate.

1.2 Specifics of Micro-Entrepreneurship

Studies indicate certain specifics of micro-enterprises compared to self-employed individuals or larger enterprises (Nalweyiso et al., 2022), which should be reflected in an analysis of micro-entrepreneurs’ capacities for safeguarding against sickness. Most micro-entrepreneurship studies deal exclusively with economic aspects and prioritise the masculine characteristics of entrepreneurship, inquiring about factors of success, innovation, and expansion, even in the pandemic context (Boro, 2022). Almost none of them reflect the fact that micro-entrepreneurship can be viewed as an achievement and goal in itself. In this paper, we deviate from the economic perspective by highlighting micro-entrepreneurs’ experiences and especially how their business and family/relationship arrangements and the pandemic situation determine their considerations of safeguarding against sickness.

Micro-enterprises are specific (Mor et al., 2020; Wilkinson, 1999), with characteristically small teams, which can be advantageous for work organisation but disadvantageous in that the employees and the micro-enterprise owner cannot be substituted due to their (typically narrow) respective specialisations and responsibilities. Their replaceability is further complicated by the absence of formalised procedures. This can again be viewed as an advantage (faster decision-making) but in crisis situations (such as the pandemic), responsibilities remain unclear. For these reasons, micro-enterprises are at increased risk of bankruptcy. At the same time, micro-enterprises were among the hardest hit by pandemic control measures in Czechia (Řeháčková et al., 2021).

1.3 Conditions and Context of Doing Business in Czechia

Micro-entrepreneurs’ choices in safeguarding against sickness were also shaped by the social climate and the laws governing entrepreneurs’ sickness allowances. As a post-socialist country, Czechia only saw a significant growth of entrepreneurship in the 1990s (Váchal & Talíř, 2020). Men’s and women’s entrepreneurial options are traditionally shaped by the gendered division of labour both in the household (e.g. the defined roles of male breadwinners and female caregivers, weak motivation of fathers to share in care) (Hašková & Saxonberg, 2016) and in the business sector (e.g. low share of female entrepreneurs). In Czechia, the percentage of women among entrepreneurs is 31.1 % (ČSÚ/CSO, 2021a) and the percentage of female entrepreneurs among working women is 9.5 % (ČSÚ/CSO, 2021b). Women own lower-revenue enterprises, which affects their business income.

Entrepreneurs’ strategies for safeguarding against sickness are structured by the tax system and the social policies providing them with (weak) social protection during sickness. Czech entrepreneurs are obliged to pay social and health insurance premiums (hereinafter “mandatory premiums”) and allowed to pay sickness insurance as voluntary members (“voluntary membership”). The sickness insurance scheme provides allowances to accompany sickness leave, maternity leave, etc. Employees are eligible for several times higher sickness allowances paid automatically by their employers from the first day of sickness (Kaiserová, 2018). However, entrepreneurs with voluntary membership only obtain allowances from the 15th day of their sick leave. This is likely the reason why only 11 % of Czech entrepreneurs are voluntary members (ČSSZ/CSSA, 2021), women more often (14 %) than men (9 %) because membership is a precondition of drawing benefits during maternity leave. No significant growth of the take-up of sickness insurance among entrepreneurs was observed during the pandemic.^[1]

3.1 Effects of the (Co-)Breadwinning Role and Relationship on Strategy Choice

Women’s and men’s access to and interpretations of safeguarding against sickness were strongly shaped by whether they assumed a breadwinning, co-breadwinning, or economically dependent role. Most men with children were breadwinners, assuming the main responsibility for their family’s financial security. Therefore, they chose strategies and tools for overcoming an entire period of loss of earnings, even during sickness, while covering their household expenses:

I pay a pretty high life insurance premium in case something happens so that everything is paid for and we don’t get into trouble. Our flat is mortgaged. We don’t want to end up without income or with debt collectors at our door.

Jiří, 45 y.o., 1 child (6 years), transportation

Due to their main breadwinner’s role in the family or relationship, men combined different practices of the individualised financial strategy: commercial insurance (against sickness and injury), savings, and investing in real estate or other assets. This was also the case of two women who were the main breadwinners (Monika and Milada). Although men with children had elaborate systems for safeguarding against their sickness, they declared working even when they were ill. They did not explicitly mention doing so to maintain some income for their families, yet this consideration clearly influenced their decisions to work despite being ill. Their elaborate system of practices under the individualised financial strategy suggests that the men with children found it essential to keep their family financially secure under any circumstances, even at the cost of putting their health at risk.

Childless men who viewed themselves as co-breadwinners emphasised the individualised strategy for safeguarding against sickness (allowed by their sufficient business income and the absence of dependent children) while using the narrative of “good health”, as represented by statements like “I have not had any health problems all my life” (Hynek, 45 y.o., childless, IT). Yet these men did not mention actively doing something for their health. Their vision of a near illness-free, permanently healthy entrepreneur corresponds with the so-called entrepreneurial masculinity, which treats sickness as a weakness (Giazitzoglu & Down, 2017). The narrative of relying on one’s health was not as strong among men with children (breadwinners). Clearly, the presence of children in the family oriented breadwinners towards choosing strategies and concrete practices for guaranteeing coverage for their entire family during their sickness.

While most women were co-breadwinners or dependents, few reflected the negative impacts of economic dependence. The security of their partner’s financial support allowed them not to worry about periods when their businesses were not profitable, namely during sickness and beyond. Thus using strategies and practices that were affordable and corresponded to their lower socioeconomic status, such as joint sickness coverage with their partner:

My husband and I have joint savings. Let me stress that I’m getting great support as my husband earns enough money to provide for us, so I don’t stress about not making a profit.

Irena, 32 y.o., 1 child (4 years), clothing retail and tailoring

However, joint policies often did not mean equal decision-making about such insurance coverage. When the men earned more money, they made the choices of insurance type and coverage. Given the predominant breadwinning role among men, we assume higher insurance limits were set to cover any loss of earnings among men. Economic in/dependence determines which strategies are attainable and also how concrete practices, such as commercial insurance policies, will be arranged.

3.2 Effects of Socioeconomic Status on Strategy Choice

Socioeconomic status was another dimension of social location influencing which instruments and strategies for safeguarding against sickness were attainable and conceivable for the micro-entrepreneurs – irrespective of their gender identity or the presence of small children. For the men and women who declared a higher socioeconomic status, it was realistic to use and mix different strategies and practices. Those more oriented towards the ideal of entrepreneurial masculinity (Ahl, 2006) and emphasising profit, innovation, or expansion had greater capacities for safeguarding against sickness through practices of the individualised financial strategy (commercial insurance, savings, real estate, other assets).

Higher socioeconomic status was associated with individualism and the feeling that the micro-entrepreneurs themselves, without government or family support, had to deal with any interruption or restriction to their business activity. Such individualism was also made possible by sufficient financial resources. Šimon’s story shows that micro-entrepreneurs were aware of the limitations of business activity and the risks of the individualised financial strategy for safeguarding against sickness. They reflected the weaker social protection covering entrepreneurs during sickness and the limitations of commercial policies, which usually cover long-term sickness. Even so, they were strongly motivated by the opportunity to earn more money and pay lower mandatory premiums than employees. The money thus “saved” was then invested deliberately:

Of course, (as a micro-entrepreneur) I lose my job and social security, but I keep the money. So after paying my small taxes, I can use the rest how I want.

Šimon, 34 y.o., 2 children (1 and 3 y.o.), economic consultant

Entrepreneurial individualism also shaped the micro-entrepreneurs’ considerations of how to safeguard against their sickness: the statutory scheme strategy was rarely considered.

The micro-entrepreneurs declaring lower socioeconomic status in our sample consisted primarily of women with dependent children, but also some women without caregiving commitments. To them, having better-earning partners meant either accepting the safeguarding strategies offered by them (joint insurance policy) or relying on their support at a time without earnings, which exacerbated their dependence. Women seeking individual safeguards against sickness, who did not want to ask their partners for finance, had limited safeguarding capacities due to their low socioeconomic status. This is why they opted for less financially demanding strategies, as exemplified by Hana. While Hana had some commercial sickness insurance and voluntary membership, all of those were limited in size. Relying on good immunity was her main strategy.

I’m a strong immunity type. That was my reason to start a business, being healthy, being strong and not needing sickness insurance.

Hana, 40 y.o., 1 child (7 years), children’s needs counselling

However, the practices attainable under lower socioeconomic status included joint insurance policies with one’s partner or less costly strategies such as reliance on good health or use of the human capital strategy (being replaced by one’s employees). Some communication partners reflected a risk of this strategy, namely the organisational structure in which the micro-entrepreneur has a specific position and role, including specific knowledge not shared with anyone else in the small company. In our sample, mostly women with children were using this strategy because they had experienced periods when they could not personally manage their business due to the illness of their children. Because of their secondary breadwinner’s role, they could not afford doing anything other than substituting with an employee. Thus, they were more likely to be exposed to the risk of imperfect substitution and often had to finish the work started by their employees.

3.3 Care for Dependent Children

The division of family roles in our sample was rather traditional, with women predominantly the caregivers and men secondary caregivers, even in families with female breadwinners. Women’s primary caregiving role was associated with certain considerations of safeguarding against sickness. To the women, motherhood meant long-term absence from work, against which they safeguarded through the statutory sickness insurance scheme, drawing maternity allowance. Such safeguards required planning ahead. Their voluntary membership in case of motherhood inspired them to consider the statutory scheme as a realistic option in case of sickness, too. Monika, for example, who was a breadwinner like most men, got voluntary membership to secure her maternity allowance. Then she remained a member irrespective of motherhood, despite primarily using the individualised financial strategy. She viewed voluntary membership as one of the practices to stabilise her family’s financial situation during her sickness:

I pay the minimum sickness insurance for a single reason: to pay for our housing in case of losing my income for a long time – because I’ve been saving up for the rest.

Monika, 40 y.o., 2 children (4 and 1 y.o.), insurance policies, consulting

Women with children chose the statutory scheme safeguarding strategy because the monthly premiums were radically more affordable than commercial policies. This strategy was financially attainable given their co-breadwinning/dependent role. In contrast, men without caregiving commitments and childless women rather relied on a mix of practices under the individualised financial strategy, some women also on their partner’s income. These interviewees often did not even consider using the statutory scheme. In their approach, they arguably followed the model of entrepreneurial masculinity, assuming that the entrepreneur should take individual precautions against such situations. In addition, they did not view this type of insurance as a realistic option because they had not directly experienced it in the context of maternity leave. Some men with children also argued that the benefits from sickness insurance were lower than those from commercial policies, providing their families with inadequate safeguards should they lose their breadwinner’s earnings. Another risk for the male breadwinners was that the coverage only starts on the 15^th day of sickness.