Nowadays,many people choose to be self-employed,rather than to work for a company or organisation. What are the advantages and disadvantages?

In recent times more and more people are starting their own businesses or becoming freelancers compared to being employed by a company.

Although

the main reasons for

this

trend are flexibility and earning a higher

income

, drawbacks of self-employment like facing higher risk and unstable

income

should not be ignored. An individual who is self-employed has freedom of choice.

In other words

, they do not work for anyone which means they can make unrestricted decisions in their workplace.

Moreover

, they are not bound to answer anyone if their action has negative consequences. Another reason for

this

trend is, people who have their own businesses tend to earn a higher

income

compared to those who work in a salaried job.

This

is because most of the time business models are profitable and a major proportion of the profit belongs to the owner of the business.

For example

, a retail shop owner has the privilege to enjoy the majority of the profit

whereas

he pays a small percentage of the profit as salary for his employees. Businesses and freelancing have many risks

such

as instability and loss. To explain

this

further

, self-employed individuals have to face the loss and have to take full responsibility which can cause stress and anxiety to them. Another major drawback of self-employment is not having a sustainable

income

.

In other words

, an employee working for a company enjoys a stable

income

regardless of the performance of the company

while

self-employed individuals'

income

depends on their performance.

For instance

, a driver, who drives a taxi may not earn a single penny if they do not go to work

due to

illness

whereas

an employee will be paid his salary even if he is not working

due to

illness as their medical leaves are covered

according to

the labour laws.

To conclude

, even though there are many advantages like earning large profits and enjoying work-related flexibilities in self-employment, disadvantages in terms of job insecurity and unstable incomes should not be taken lightly .