Nowadays many people choose to be self-employed, rather than work for a company or organisation. Why might this be the case? What could be the disadvantages of being self employed?

Presently, most people prefer self-employment as opposed to working for a company. The main reasons behind

this

are due to increased flexibility and autonomy. While there are many advantages in favour of self-employment, there are some noticeable drawbacks as well. As mentioned above, a smaller independently owned company offers large amounts of flexibility. If an aspect of their business is not working and rather than sit in a board room and convince numerous heads of the conglomerate, they can execute their decisions far more quickly.

Similarly

, self-employed private companies enjoy superior autonomy as their stocks are privately owned as opposed to publicly traded companies.

On the other hand

, smaller companies do not necessarily have the same negotiating power that many large corporate organisations wield. They might have to purchase items for their business at a much higher cost, leading to decreased profit margins.

Similarly

, in the event of economic recession, more prominent companies can afford to take in reduced profits while many self-employed, companies can not; some even go bankrupt during these times. In conclusion, while there are many advantages to being self-employed, there are definite drawbacks which need to be taken into account when looking for work. In my opinion, for individuals offering their expertise as a service, it is better to be self-employed.

For example

, a doctor can operate his family practice. For a business which manufactures products to be sold, it is better to work for organisations as it offers increased job security in worse case scenarios.