This study investigates the determinants of self-employment and the effects of con-tinuous vocational training among new self-employed and job movers. The analysis is based on a cross section of individual data for West Germany in 1991/92 covering vocational training and firm foundation through 1987 to 1992. Our results show a higher participation in vocational training among the new self-employed than among the employed job movers. There are no income effects of vocational training for the self-employed. Using a sample of all self-employed and employed it can be seen that continuous training becomes less important after entering self-employment.