Self employment

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Self employment could bring many advantages. One of the advantages of being self-employed is that the profit the business makes belongs to the owner. If the self-employed person succeeds in business, he has the chance to earn a great deal of money. The profit earned is the reward for the owner’s effort, ability and creativity. Thus, a second advantage is that a person’s intelligence and abilities have a direct effect on the earnings. A third advantage of being self-employed is that a person can control his working hours. While not all self-employed people are completely free, most of them have more control over this area than the salaried people.

However, being self-employed is not without problems. First, being one’s own boss places the responsibility directly on that individual shoulders. Everyone has some weaknesses in a certain aspects. These weaknesses will affect how successful a self-employed person is. Second, though the self-employed can earn considerable profits with a successful business, losses can force them out of business and sometimes, place them in debt. A third disadvantage concerns income security. Self-employed people have no guaranteed wage. Their earnings can vary greatly, depending on business conditions. Salaried people, however, can generally count on continued earnings.

In addition, salaried people often enjoy fringe benefits that mean greater peace of mind. One of these benefits may be insurance paid for by the employer that continues the employee’s salary in the event of sickness or accident while many self-employed people do not have such protection.