Advantages and disadvantages of self employment

With millions joining the job market every year and many looking for blue collar jobs there is need for the youth and graduates to be entrepreneurs, sole proprietors or self employed in their different fields of study.

Entrepreneurship creates self employment which one can empower themselves with.
Research says that the richest and most success people in the world are entrepreneurs and self employed.

Newszaleo.co.ke looks at the advantages and disadvantages of self employment or entrepreneurship.

The advantages of self of employment are:

1.Flexibility.
You are your own time manager and you decide when to start working and when to stop.
You can give yourself off days if you feel that you have worked hard enough and need a vacation at any day any time.

2.You are your own boss.
You work by your own rules.
You make key decisions according to how you want them.
No one interrupts or decides for you on how to run things, you get to do things as you please.

3.All the revenue or profits generated from your work are yours.
As earlier stated the richest people in the world are the business owners.
This is because all they get from their hard work is theirs and are the ones who decide how much to pay their employees.
If you work at at a company you are sure your salary is only a fraction of the total gross income or profits generated by the whole company.

4.You are more self motivated and independent
When you run your own enterprise the mere fact that everything is under you is motivation enough to work harder everyday to make and earn more money.

5.If your business or enterprise is futuristic it offers future job security.
In a dynamic world where technology interrupts all the sectors and players of the industry and the economy keeps changing, you risk loosing a blue collar job very easily at any time due to employees lay offs and under cutting staff to maximize on profits that happen every now and then.

6. You get to practice what you love and are self passionate about.
Self employment offers the gold opportunity to practice what gives you pleasure,happiness and self gratification.
It may not be so rewarding at first but in the future when everything works out you maybe be glad you started out.

7.You keep learning everyday. In self employment to stay at par or beyond your competitors you keep learning on how to do better at what you do. This leads to personal development and makes you an expert at what you do which leads to better returns.

However self employment also comes with its disadvantages too which are:

1.You incur all the expenses from start up capital, any expenses or losses insured and paying taxes.

2.You are liable to anything good or bad that happens to your business or enterprise. You incur any risk associated with your venture or business.

3.You risk overworking to earn more and as a result have a reduced social life or you might be unable to maintain a proper work life balance. This is simply because you do all the work to make profit, the venture being yours.

4.Every decision you make has consequences.
Being the manager of your business means any decision you apply it’s results either good or bad, you will be the one to face and experience them.

5.Inconsistent money flow.
Unlike in blue collar employment where you are guaranteed of a monthly salary in self employment you pay yourself anytime your business makes money be it daily, in a fortnight, monthly or in three to six months.

6.You are in charge of your own health, welfare and future. Unlike in some companies where health insurance, food and pension are offered in self employment you provide and cater for yourself all your needs from food, healthcare and your future welfare.

Which other advantages or disadvantages have your heard or do you know from self employment that we might have missed? Feel free to share with us.

Whether you choose to pursue a blue collar job or venture into self employment what matters at the end of the day is that you are able to settle your bills and live your dream life.

As the saying goes life is short always feel free to pursue any endeavor or venture that makes you happy and gives you self gratification.