Learning for LifeandWork
Apr 22, 20201 min
Self-employment is a term used to describe people who work for themselves. The person who is self-employed are their own boss as they have set up their own business and are making money from that business.
However, there are many risks involved in being self-employed. For example:
the initial cost of setting up the business may be high and the business may be in debt in its early stage.
the business may be difficult to get off the ground due to a poor economic climate and this could result in no income for a period of time.
the business may experience difficulties selling products due to poor market research carried out by the business.
difficulties may arise if the owner has to take time off due to sickness or go on holiday and so will receive no income for this period of absence.
there may be no-one to share decision-making with and so the correct decision may not always be made for the business.
there may be too much competition and this could result in the business losing out on sales and profit.
the self-employed business owner may experience difficulty with cash-flow in the business and this could put the business at risk.
the self-employed business owner may not be expert in all areas of the business and so could end up losing all of their investment in the business.