Dear MEL Topic Readers,
Sweden’s surprising rule for time off
While the neighboring country is testing the effectiveness of universal basic income scheme to unemployed citizens, covered in yesterday’s Vol. 2501, Sweden has a law that helps full-time workers to try out their own businesses. The law ensures the right to take a six-month leave of absence to start a new company or to study. It gives those who have an idea and passion for a new business a chance to try it out. Though the salary isn’t paid for the period, the person can get back to the job if he or she decides not to pursue the project any further. It seems to ease the fear of failure, financial risk and career opportunity to start a new business.
In fact, there has been a significant increase in small businesses in the last decade in the Scandinavian country even though the direct link to this program hasn’t been clarified.
Unlike the universal basic income program, this law doesn’t cost any to the government. But what about the employers and coworkers who need to fill the gap during the period?
Enjoy reading and think which idea works better in your country to stimulate entrepreneurship, universal basic income or leave of absence.