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 disadvantages of being self-employed?

In recent years, individuals have had a tendency to start their own businesses

instead

of applying for a job to become an employee at work.

This

essay will look at the primary cause of it and discuss the disadvantages of

this

trend. One of the most evident reasons why people opt to start a startup is because

this

action provides more job security. A good example of it is the labour market in 2020. Covid 19 hit a lot of companies hard, which forced them to lay off colossal numbers of white collars and blue collars.

Consequently

, these employees found themselves out of the job and it was extremely challenging for them to find another occupation amid the pandemic.

By contrast

, if people work for themselves, they are not at the mercy of any employers, making it easier for them to have stability in their lives.

However

,

this

phenomenon brings some drawbacks.

Firstly

, a business owner might suffer from stress and anxiety. Specifically, growing a successful business under fierce competition is not easy

due to

the fact it requires many factors, including effective marketing campaigns, product development, and customer satisfaction. All of

this

can take its toll on a person’s mental health if they have to work alone.

Secondly

, financial risks should be taken into consideration. To illustrate, self-employed people borrowing money from the bank have to bear the loan pressure or they may end up with unpayable debt, leading to bankruptcy. In conclusion, entrepreneurship can bring a sense of stability, but it

also

causes burdens regarding distress and financial risks for entrepreneurs