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

Self-employment

has been seen as an attractive alternative to getting stuck in the corporate world. The main reason for

this

choice is perceived freedom, which one may expect through

self-employment

. Two main disadvantages of being self-employed are exposure to greater financial risks and higher

stress

levels. In

this

essay, reasons for

self-employment

popularity and disadvantages of the same will be discussed.

To begin

with, a lot of people point to the lack of freedom in the current corporate world as the biggest reason to choose

self-employment

over a standard nine to five

job

.

Firstly

, modern corporate employment could be very stressful, demanding and less forgiving.

Secondly

, most people who tend to prefer

self-employment

do not have a 360-degree view of what it takes to be successful.

For instance

, not even 5% of self employees get successful in the

first

year, whereas less than 1% of them go beyond 3 years.

Thirdly

, in the early years usually

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,

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you have to work around the clock to be successful as a self-employed person which could be even more stressful than a standard corporate

job

.

Hence

,

this

common delusion of a higher freedom level leads to the choice of

self-employment

over a routine

job

. On other hand,

as a result

of unsuccessful self-employments, there are thousands of people who run into enormous financial difficulties and often end up with greater

stress

levels. At

first

, self-employees usually provide the capital they need through bank loans and when their employments fail they run into debt problems.

Subsequently

, these challenges could lead to higher

stress

levels which can affect one’s health as well. As an example, there have been a lot of media reports related to family issues and crimes that have been caused by higher

stress

levels due to unsuccessful

self-employment

attempts.

Thus

, it is important to realise the financial risks and higher

stress

levels are two disadvantages one could overcome in order to be successful in

self-employment

. In conclusion, it seems there is a big demand for

self-employment

currently, mostly due to the lack of awareness of the full picture.

This

could lead to serious risks related to financial instability plus mental health unless

otherwise

, someone is fully aware of

such

risks.

Therefore

, people who are planning to choose

self-employment

over a corporate

job

should perform due diligence before making the final choice.