Nowadays many people choose to be self-employed, rather than to work for a company or organisation. Why might this be the case? What could be the advantages and disadvantages of being self-employed?
In recent years, thanks to the internet, more and more people have been able to pursue their ideas and start their own companies due to most tools and resources being available online.
Furthermore
, with more and more seminars about business
coming to light, people are now being encouraged to start their own company
and become financially independent. This
essay will talk about the benefits and drawbacks of becoming self-employed.
On one hand, when one is self-employed he is able to better adapt to changes in the market trend and pivot to a better idea. For instance
, Nintendo which was a board game company
in the earlier days decided to change its path and focus on electronics and gaming technology, and by doing so they have been able to attract more customers. In contrast
, larger corporations are unable to do so because of their large size and limited freedom from stockholders. Therefore
, it is clear that one advantage of being self-employed is that there is more freedom to change the course of the company
based on market trends.
On the other hand
, the biggest drawback of creating your own start-up is managing finances. Most of the time, entrepreneurs have to make do with the limited cash flow and manage expenses accordingly
. A survey conducted by the New York Times in 2020, claimed that 78% of startups fail because they are not able to maintain a positive cash flow and because of this
their runway is shortened and they are forced to go out of business
. Not only is poor financing a problem but also
, many employees of startups get demotivated because they are unable to receive a proper salary and hence
leave the company
. In short, it is apparent that maintaining a proper flow of finances is essential for the functioning of the company
and can lead to the rise and fall of the business
.
In conclusion, when a person creates his or her own business
there are many benefits and challenges that come with it. After a thorough analysis on the subject, most can agree that the disadvantages of creating a company
outweigh the advantages.Submitted by srikanth923 on
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