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Self-Employment Merits and Demerits

Updated on July 12, 2015
The author's picture on the importance of self employment. The pictures portrays the respect the author have for self-employment.
The author's picture on the importance of self employment. The pictures portrays the respect the author have for self-employment. | Source

Topic Introduction

Self employment is a system of entrepreneurship or living where the business is managed by a person instead of being employed in a company established by another manager. This has helped a lot of people achieve the level of progress they dreamt of. There are a lot of advantages of being self-employed. On the other hand, there are also disadvantages of being self-employed. But note that importance of skill acquisition must be embraced in running self-employed job.

It is important that you as a reader of this piece work hard from today to be self-employed in future or even now. The problem, unemployment, is still making noise in many parts of the world because people have not discovered the benefits of self employment. I decided to put down this topic on self-employment because of the love I have for the topic. Notwithstanding that there are advantages of self employment, there are few disadvantages. But the truth still remains that the advantages are more than the disadvantages.

Benefits of Being Self Employed

What is your view on self-employment? Any wise person will not like to answer sir to any management if he or she has the fund to start a business of his or her own. The advantages of self employment are as shown below:

  • It encourages hard work. Self-employment makes business owners to work hard and make their way through the business. When you are self employed, you do everything possible to promote the business because the business is yours and yours alone. Even owners of small-scale businesses work hard to meet up to a good and great standard. Think of what is happening in most government establishments. Many workers in those establishments feel reluctant to work because they know the business is not their own. What everyone owes receives less care, but what you own receives maximum attention. In government schools in most parts of the world, the teachers do not cover the academic curriculum of each term because they know the government is not monitoring them closely. But if the owner of a school manages the school by himself or herself, the school will be well supervised and up to standard. The owner will do his best to see that the students learn how to perform well academically.

  • When you are self employed, you enjoy all gains alone. There is no room for shearing of the profit you make with any person because the profits are all yours. Yes, they are all yours! Gains are propelling force to every business owner and this will make the self employed person to put in more efforts. You can put in more effort and make more money because you have seen the good side of being self employed. When one is working under any organization, the gain you make is that of the company and you are paid per month depending on the agreement you had with the company. The increase in your salary only comes when you are promoted. In fact self-employment is the best when it comes to profit making.

  • One who is self employed can easily take decision on his own without passing through series of processes. When you are self employed, you stand the chance to easily take decision on how to meet the demand and choice of your customers. With self-employment, one can sell goods Cheaper to a particular customer in order to get his or her interest. When one works under a manager, the price for which each product is that assigned by the manager. Any worker that sales any product lower than the price fixed by the boss can get sacked as that is a sign of disobedience. Working under a private or government establishment is somehow being in chain as it does not give the workers the freedom to offer services below the fixed price.

  • There is freedom of movement in self employment. The culture of obtaining permission from the head before workers do anything does not apply in self-employment. When people are self employed, they can attend any meeting at any time without passing the stress of writing letter to the manager, standing in a long queue for submission, waiting for one week for approval and begging the manager to allow them to attend a ceremony or occasion. In self-employment, all these processes are dead story as it does not apply. Freedom of movement is one of the good sides of self-employment.

  • Self employment encourages dynamism. This system of business gives freedom to changes at any point and at any time. The owner of the business can easily switch over to any business of his choice without writing to anybody or waiting for another party to say yes before taking any action. When you are self employed, you can easily change from marketing of shoes to vehicles. This dynamism makes businesses to grow from time to time without restriction.

Disadvantages of Self Employment

As you have read the advantages of self employment, so are its disadvantages. The disadvantages are:

  • Death risk: One of the major disadvantages of this entrepreneurship system is that the death of the owner can result to the end of the business. When you reason this point critically, you will discover that many businesses have joined our ancestors since their owners died. When another who practices the same system of business takes over the shop, his death ends the business as well. The only survival of this system of entrepreneurship is when the dead has good relations who can take over the business. Observation has shown that many kind of this establishment has ended because one who managed the business has gone (self-employed fellow).

  • There is always capital problem in starting self employed businesses. There are a lot of people that have the zeal to start-up a self employed business, but the hindrance is the fund for the establishment. Where will the money, land and other resources come from? This is a big challenge in starting a self employed business. When people want to start a business of their own and look at the challenge from capital, they humble themselves and attach under already built industries/companies.

  • Another disadvantage of self-employment is challenge from families. When you are self employed, you can work day and night to see that things are put right in your company. This can make you to come back late at home. If the worker is a married man, there may be disagreement between the worker and the wife because of the lateness. Again, if you are unmarried and live with your parents, problem may arise and that can shatter your business dream.

Self-Employment: Solution to Unemployment

There are many causes of unemployment in many countries. One of the causes of the unemployment among nations is inadequate self-employment. Those who are graduates move with their files from one company to another in search of jobs because they are inadequately self employed.

Governments are making efforts to put things in order through holding of skill acquisition seminars to equip their citizens skilfully. Skill acquisition youth empowerment which is a type of youth empowerment is being established by governments to reduce the rate of unemployment in various nations.

Examples of Self Employed Jobs

There are a lot of self employed opportunities which people can engage in and make money from to solve their daily challenges. All the self employed jobs cannot be given in detail, rather a few of them is discussed. Hence, the examples of self employed jobs are: welding, mechanics, electrical works, freelance Writing, and printing.


Welding is the process of joining metals together by heating them to their melting points. A person who welds is called a welder. There are many welders who have trained their children to the highest level of education because they made money from their self employed works. A welder who works in workshop ensures safety precautions in the workshop to avoid damages.


Oxford Advanced Learners Dictionary defines mechanic as a skilled worker who repairs and maintains machinery. Before any person works as a mechanic, he must have undergone training through an expert in that field. Working as a mechanic required sound skills and it is a good example of self employed job. Importance of training and development cannot be overlooked when it comes to mechanic functions.

Electrical Works

The people (artisans) that carryout electrical works are known as the electricians. These artisans are hired by people who need their services. During finishing operations in houses, the electricians are called for the necessary wiring of the houses so that there will be supply of power. During installation of electrical appliances like transformers, the electricians are paid for the job.

Hubpages Logo, a revenue sharing site
Hubpages Logo, a revenue sharing site | Source

Freelance Writing

There are a lot of people who have made much money by working as freelance writers. Some publish hard copy books and sell to people and make their money. Also, some prefer to publish articles on the internet and get paid by advertisers that advertise goods or services beside their articles. People that publish online can work from home and get paid.

One of the websites to publish and get paid is on Hubpages. This website allows those that want to start writing online to write and publish on their site. The site shares the revenue generated from the advertisers by 60/40. A publisher gets 60% of the money paid by the advertisers while the 40% goes to the site owners who are the Hubpages. Any person that wants to write can signup on Hubpages and start publishing.

What does it take to write on Hubpages

Writing on hubpages requires just your computer and internet connection to start. Ensure that you have up to three images illustrating what you are writing on and your articles become featured (published with adverts) for people to search and read. Once you sign up, the site will teach you on other things to know about writing there. In fact, Hubpages is good place to write.


There are a lot of self employed workers who make their daily bread from printing works. There are many top printing presses located in many parts of the world that make sound gains from their functions. Printing is a good self employed job that many businessmen and women have been benefiting from for years now. The work is carried out by printing machine which is the major operating device.


What is your idea on this topic? As a writer of this article, I am aiming to establish my own company one day. Even though this topic discusses both the advantages and disadvantages of self employment, the truth is that the advantages are more. Also discussed are solutions to unemployment which is self-employment. Examples of self employed jobs were also given.


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