Pros and Cons of Self-Employment
Essay by Shuhaib • May 21, 2012 • Study Guide • 393 Words (2 Pages) • 1,830 Views
I read the following in the book from Leith Oliver and John English and found it very interesting. So wanted to share it with everyone for sake of knowledge. All credit to Leith Oliver and John English.
Competition is the essential ingredient in the business environment. It encourages businesses to make efficient use of resources. People will patronize efficient businesses rather than their inefficient rivals, so the efficient businesses flourish and the inefficient ones go out of business. In this way success and prosperity are earned by those firms that best serve their customers.
The small business environment is the most competitive of all. Before you embark on self employment, you must face the fact that operation of a small business is one of the toughest ways there is to make a living. First, you should seriously examine the advantages and disadvantages of operating a small business.
Advantages
* You can be your own boss, you can be independent, and you can exercise your own talents and capabilities.
* You will have the chance to make money - maybe even a great deal of money - and you will not be dependent on a fixed wage or salary.
* You will have the opportunity to achieve a feeling of personal worth, accomplishment and recognition.
* You can develop your own ideas, products and services.
* You will be able to work at something you enjoy, and you will perhaps succeed where others have not.
* You may achieve economic security for yourself and your family.
* You may be able to provide something of value to the community.
Disadvantages
* You can fail and lose your money, as well as the money your friends or relatives may have invested in your business.
* You will have to work hard, perhaps as long as 15 hours a day for many weeks at a time, meaning that time for family and friends will be difficult to find.
* Your income may be uncertain and could fluctuate tremendously as a result of factors that you cannot control.
* You will face the unrelenting pressure of having to make decisions and solve problems that may call for expertise beyond your current capabilities.
* You will still have a boss - in fact you will have many bosses including customers, suppliers, government agencies and your banker.
* You may eventually hate your business in the same way that other people hate their jobs, and you may find it difficult to get out without incurring an unacceptable loss.
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