This study investigates patterns of movement from self-employment to wage employment or to unemployment in Belgium. Non-parametric techniques and complimentary log–log analyses are used to determine the significance of stable individual traits (e.g. gender) and of time-dependent characteristics (e.g. family and organizational context, labour market mobility) in moving back to wage employment or to unemployment. Evidence is provided on the possibility of entrepreneurship acting as a ‘steppingstone’ between long-term unemployment and paid work. Yet, significant relationships also emerge between ex-ante time spent in unemployment and the possibility of continued unemployment upon self-employment exit.