Reasons why a person would prefer to own their own business rather than being an employee
Self-employment is a term used to describe people who work for themselves. The person who is self-employed are usually both the employer and the employee. They are their own boss as they have set up their own business and are making money from that business.
There are many reasons why a person would prefer to own their own business and be self-employed rather than be an employee for someone else. Some of these reasons can be broken down into financial reasons and non-financial reasons.
Financial benefits include:
Being able to make a profit
Money made from the business is profit. The owner of the business could keep all the profit for themselves. This will lead the self-employed person, the business owner, to work hard to earn more profit.
Being able to create jobs in the local community
If the business develops and is successful then the self-employed person, the business owner, can hire employees to help the business grow and make more profit.
Watching the value of the business grow
As the business grows and develops and becomes more successful, employees can be hired by the self-employed business owner and hence grow the value of the business. This means that when the business is sold, the self-employed person/business owner could make a profit on this sale.
Non-Financial benefits include:
The opportunity to be the boss
When the person is self-employed, they are their own boss and in charge of their own time. They can dictate when to work and how much time to spend working. Also, the opportunity to be one’s own boss will motivate the self-employed person/business owner and this can boost their self-esteem and self-confidence.
Being able to control the business
When the person is self-employed and own their own business, they are in control of all the decision-making and the direction of the company/business. They are their own boss and they will make all the decisions that will help the business to develop further.
Enjoying the flexibility that comes with being the business owner
When the person is self-employed and own their own business, they can choose when to work and can enjoy working flexible hours; perhaps even taking holidays when it suits them and the business.
Enjoying some job satisfaction
When the person is self-employed and owning their own business, they can try out new ideas and take delight in watching their business grow and work hard to get good customer feedback. This can be rewarding and thus provide the business owner with greater job-satisfaction.