Self-employment is a significant driver of economic growth globally, but self-employed individuals were disproportionately affected by the COVID-19 pandemic. This study focuses on Sweden and Canada, two advanced industrialized nations with contrasting social welfare systems, to examine the impact of governmental financial support on the resilience of the self-employed during the pandemic. Sweden, a social-democratic state, provides extensive social benefits, while Canada, a liberal welfare state, has a more market-oriented approach with means-tested support. Both countries implemented diverse financial support measures, but research on their effectiveness for self-employed individuals remains limited. The study aims to compare governmental financial support policies in both countries and investigate how these measures affected the resilience of self-employed individuals, considering their experiences and perspectives. The different pandemic management strategies adopted – Sweden's relatively mild approach versus Canada's stricter lockdowns – also provide a significant contextual backdrop for the analysis.

Existing literature highlights the vulnerability of self-employed individuals during crises due to limited resources and income instability. The pandemic exacerbated these challenges, leading to income loss, operational difficulties, and increased stress and uncertainty. Studies have demonstrated the negative impact on well-being among self-employed individuals during the pandemic, with significant drops in well-being compared to pre-pandemic levels. Resilience, defined as the ability to adapt and maintain functioning during adversity, has been identified as a crucial factor in navigating challenging situations. Research also suggests that financial support plays a crucial role in supporting business resilience and optimism. However, there's a lack of comparative studies investigating the efficacy of various policy measures in different welfare systems and their effects on self-employed resilience.

This study employed a mixed-methods approach combining policy analysis and semi-structured interviews. Policy data were gathered from publicly available government websites in Sweden and Canada, focusing on financial support measures implemented during the pandemic. These documents were analyzed using a constant comparative method, identifying categories related to employment protection, social insurance, and unemployment protection. Nine self-employed individuals (four from Sweden, five from Canada) were interviewed using a semi-structured guide covering their background, experiences with support measures, and work environment during and after the pandemic. Interviews were conducted in person or by telephone and transcribed verbatim. Qualitative data analysis involved open coding, content analysis, and a constant comparative method to identify themes and patterns across the two data sources. The data were managed using NVivo software. Ethical approval was obtained from Sweden's Ethical Review Board, and informed consent was received from all participants.

The policy analysis revealed that both Sweden and Canada offered various support programs, including subsidies, tax deferrals, loans, and enhanced social insurance. However, key differences existed. Sweden's short-time work program, though generous, excluded sole traders, while Canada's Canada Emergency Wage Subsidy similarly excluded self-employed individuals without employees. Both countries strengthened social insurance, but with varying degrees of generosity and accessibility. Canada introduced temporary unemployment benefits (CERB and CRB) for those ineligible for regular unemployment insurance, a significant departure from its pre-pandemic system. Interviews revealed that self-employed individuals unable to telework faced significant challenges, exhibiting lower resilience due to financial difficulties, restrictions, and lockdowns. Many expressed dissatisfaction with the support measures, citing unfair distribution favoring larger companies and unclear eligibility criteria. Financial struggles, uncertainty, and lack of support were strongly linked to reduced well-being, impacting business survival and overall resilience. Despite challenges, many self-employed individuals demonstrated agility by adapting their businesses, developing new services, and adopting online strategies to cope. In Sweden, support measures faced issues such as long waiting times and unclear information, leading to repayments and financial difficulties for some participants. In Canada, many self-employed individuals found it difficult to qualify for support due to income requirements, potentially excluding those who had recently started their businesses or faced fluctuating income. A recurring theme was the desire for more inclusive and targeted support programs in both countries.

This study's findings demonstrate that while both Sweden and Canada attempted to mitigate the economic impacts of the pandemic on the self-employed, significant disparities and challenges remain. The contrasting welfare systems and support mechanisms highlight the need for tailored approaches considering the specific needs of self-employed individuals in different contexts. The prevalence of dissatisfaction with support measures and their perceived inequitable distribution underscores the importance of designing policies that are transparent, accessible, and effectively target those most in need. The strong link between financial hardship, reduced well-being, and diminished resilience highlights the crucial role of financial security in enabling self-employed individuals to navigate crises and maintain business viability. The adaptability and agility demonstrated by many self-employed individuals emphasize the importance of fostering entrepreneurial resilience through training and support programs.

This comparative study contributes valuable insights into the experiences of self-employed individuals during the COVID-19 pandemic in Sweden and Canada. It highlights the limitations of existing support programs and the need for more inclusive and targeted policies that address the specific vulnerabilities of this sector. Future research could explore long-term impacts of the pandemic on self-employed individuals, investigate the effectiveness of different support strategies, and develop more nuanced approaches to enhancing entrepreneurial resilience during crises. Policy implications include designing support that is tailored to specific business needs, ensuring equal access for all self-employed individuals regardless of business size, and integrating well-being considerations into support program design.

The study's relatively small sample size may limit the generalizability of the findings. The focus on the service sector, which was particularly hard hit by the pandemic, might not fully represent the diverse experiences of all self-employed individuals. Furthermore, the interviews were conducted after restrictions had ended, potentially influencing recall and retrospective assessments. Despite these limitations, the rich qualitative data provide valuable insights into the experiences and perspectives of self-employed individuals.