Give the Advantages and Disadvantages of Self-Employment

Advantages of Self-Employment
i. Being self-employed means that you're your own boss. Being your own boss means that you'll be in control of all of the decisions affecting your working life. You'll decide on your business plan, your quality assurance procedures, your pricing and marketing strategies-everything. You'll have job security; you can't be fired for doing things your way. As you perform a variety of tasks related to your work, you'll learn new skills and broaden your abilities.
ii. If you're working for yourself, chances are you'll be doing work that you enjoy. You'll get to pick who you'll work for or with, and in most cases you'll work with your customers or clients directly--no go-betweens muddying the waters. As a result, you may have days when it hardly feels as if you're working at all. Such harmony between your working life and the rest of your life is what attracted you to self-employment in the first place.
iii. You'll even have the flexibility to decide your own hours of operation, working conditions, and business location. If you're working out of your home, your start-up costs may be reduced. You'll also experience lower operating costs; after all, you'll be paying for the rent and utilities anyway. If the location of your work isn't important (perhaps you're a freelance writer or a consultant), you can live wherever you want. At any rate, if you work at home, you'll greatly reduce your daily commuting time and expense.
iv. If all goes well and you're making money, chances are you can make more than you did working for someone else. And since you're working for yourself, you may not have to share the proceeds with anyone else. The fruits of your labor will be all yours, because you own the vineyard.
v. You get to decide when to spend money to help your business grow. vi. You can distribute income to family members by hiring them as employees.
vi. Job satisfaction because one engages in a form of business that suits him or her.
vii. Leads to improved living standards of the individual and those who depend on him or her.

Disadvantages of Self-Employment
i. You must be willing to make sacrifices for the sake of the job.
ii. You're going to work long hours, which means that you won't have as much time as you used to for family or leisure activities.
iii. If the cash flow becomes a trickle, you're going to be the last one to get paid.
iv. When you're self-employed, particularly if you're starting your own business, you may have to take on a substantial financial risk. If you need to raise additional money to get started, you may need a cosigner or collateral (such as your home) for a loan. Depending on how much or little work you can line up, you may find that your cash flow varies from a flood to a trickle. You'll need a cash backup so you can pay your bills while you're waiting for business to come in or waiting to be paid for completed work. Since you'll have to pay your own creditors first, this means that sometimes you may eat cereal instead of steak.
v. Remember that you're not making any money if you're not working. You don't have any employer benefit package, which means that it's going to be hard for you to:
- go on vacation
- take a day off
- Or even stay home sick without losing income.
It also means that you'll have to provide your own health insurance and retirement plan.
Remember, too, that you can choose your clients or customers, but you can't control their expectations or actions. If you don't come through for them, or if you do something that offends them, you might not get paid for your work.
vi. Social employed people are accorded low social status
vii. Leads to specialization which leads to boredom.
viii. No assurance of income.
ix. Limited skills in terms of business management.

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Titany answered the question on November 10, 2021 at 05:48