Why Do Individuals Go for Self Employment?
Self employment can be categorized within the form of the status in the labor market that can cover a vast range of activities. There are various reasons as to why individuals may go for the option of self employment and this is why the group might be heterogeneous. On the one end, the self employed individual can be seen as a single, entrepreneurial employee having micro businesses whereas, on the other end, a possible spectrum is that a group may comprise those people who tend to fail in finding an appropriate paid employment prevailing within the current market conditions. For instance, those who require working in flexible hours might rightly select it as way of earning an income in case a paid contract of employment that is offering enough flexibility is unavailable. There are others who consider this idea as the only alternative to unemployment.
In order to gain an insight of all the positive reasons that are attributed to those individuals who go for self employment, there is a vast range of motivations that requires consideration. These motivational factors might include the desire of self expression, for status, for independence or for any financial benefit.
Broadly speaking, this concept can be categorized within two sections:
· Individuals who go for self employment for voluntarily purposes such as to attain job satisfaction, independence as well as to earn higher returns, and;
· Individual who have been forced to enter into self employment simply because they do not find any other attractive opportunity.
In case, the motivation behind self employment of an individual is the former one, than the entire scenario can be viewed positively as it will offer the individuals an opportunity to increase the quality of living along with exploring different entrepreneurial opportunities. On the other hand, if an individual enters for any negative reasons or is forced within self employment then there are chances that the individual will be unwittingly encouraged to launch work opportunities or business ventures that are not only poorly resourced but, are ill-prepared as well. Such a situation might also result in a delayed transition towards unemployment.
Why is self employment growing?
There are many reasons to which the growth of self employment can be attributed to and below mentioned are some of the most common reasons:
· The number of people seeking full time employment jobs are quite higher as compared to the number of jobs available in the in the industry.
· Outsourcing of labor cuts a great deal of costs of the employers.
· Improved level of productivity as well as rapid increment in technological advancements tends to replace many jobs.
· The requirement to have flexible working time can be found in many working parents as well as in other individuals.
· The stripping of a whole management layer now holds very less opportunities for advancements.
· The advancement of the internet technology has made the idea of self employment accessible as well as low cost area to enter.
· Younger generation requires more freedom in their work and this is abundantly present in being self employed.
· It can be a part of your portfolio career in addition to your part time job.
Should you try self employment? What to consider?
It is the dream of many people to become a boss one day – by being self employed. But, the question is as to whether self employment is the right option for you or not?
Talking about the positive side, opting to this concept will allow you to be more flexible as well as freedom in your work through which you will be able to make your own decisions. Moreover, if your self employment plan is home based or if you are working from near your home, than it is considered to be a better commute. In addition to the positives, there are negative factors as well which might include the risk of extra stress risk, unpredictable income and most importantly the challenge to attain benefits on your own. You can consider about its pros and cons in a way that if you fall in this category, you go plan a vacation at anytime you want being its pros whereas, the con side will be that no one will be paying you for that trip.
If you want to work for yourself, discussing the topic with other people who are ether willing to start one of their own businesses or are conducting the affairs of a business similar to the one you are planning will be a good idea. Moreover, making a good amount of research of the market in which you are planning to enter along with its related matters such as tax obligations and record keeping will make the task easier.
On the other hand, even if you are planning to start a one-man business such as a graphic designer or a handyman after you have sought some experience in the field; there is still lot to be learnt about the practicalities of being self employed. Following mentioned are some points to consider when one is opted to this concept:
· How much flexibility you can show and what level of comfort you can show when dealing with an uncertain situation. What are your thoughts about the fact when you ought to have various tasks within your work?
· What is the amount of your fixed expenses and what type of resources as well as financial safety you have in your household (household income or savings)?
· What is the growth rate of the market segment in which you are deciding to enter?
· What are your thoughts about marketing and selling yourself as well as your business?
· Do you have the qualities of being self disciplined and self motivated?
· What is your competitive advantage and who will be the rivals in the market?
· Do you hold enough knowledge and information about business topics and market resources?
· How can you test your business plan? Are there any ways through which your business model can be tested initially so as to know whether the plan will work or not?
· Have you prepared an estimate as to what amount of capital will be required to start your business and whether you will be able to pay living expenses of you and your family during the launching phase of your work? Do you have that required amount of capital? If no, then how will you obtain it? Have you drafted any plan about what will you do if your expenses exceed your income than was forecasted?
Why Should I Be Self Employed?
Are you looking for an opportunity to become self employed and be your own boss? Being a boss to own can be a very big decision especially if your routine has been to work for someone else and have a steady amount of salary every month. The question as to why should I be self employed is supported with many reasons or you can also refer them to be the pros of being self employed.
· You have your fate in your hand. You have the freedom to make your decisions as this opportunity is absent in a regular 9 to 5 job in which you really cannot select what to do, why and when.
· You have the opportunity to do what you have been dreaming of. Since all the affairs are in your own hand, you are free to make those decisions to which you have always wished for your own.
· Your earnings depend upon your performance and there is an opportunity to earn as much or as little as possible. There is more freedom to work as well as rest depending on what you feel.
· You will be able to spend quality time with your family members and friends.
· Your work schedule is flexible and can be designed to adjust with your needs and requirements.
· You can control your level of development. For instance, you can learn and work on aspects which you have interest in rather in those areas in which your boss is interested in.
· A successful setup of your own can bring you pride.
· You have the opportunity to follow your dreams.
· The working hours are quite flexible however, remember that the more you work the more you can earn.
Facts to remember
· Motivation is the key towards opting a successful self employment plan. If you want to become successful, you will have to put in some extra hard work.
· You will be held responsible for all your actions and its consequences unless you go for a partnership concern in which all the partners will be held liable.
· Networking on both online and offline courses will be important.
Self employment is considered to be a life changing decision, so, it is very important that you look into every aspect and then start your work so as to become successfully self employed.