The pros and cons of being your own boss have been highlighted by Charnwood Accountants after new research revealed that almost one in seven people in the UK is now self-employed,
Chris Hutton, partner with Charnwood Accountants in Mountsorrel, said working for yourself offers a wide range of benefits – but it also presents a number of drawbacks.
His comments came in response to the Government’s 2015 Workplace Employment Relations Study which found that microbusinesses accounted for 33 per cent of private sector employment and 19 per cent of total output.
And, according to a survey by the Royal Society of Arts, 27 per cent of people who have become self-employed in the past five years have done so to escape joblessness.
Chris said: “Although people working in microbusinesses tend to earn less, receive less training and have fewer benefits, research has shown that they are also the most satisfied group of workers in the UK labour market Among the reasons given for this are better job control, more influence in decision making and even satisfaction with pay.
“However, despite benefits such as flexible working hours and the option to choose what work you undertake, there can be drawbacks – namely no sick pay, holiday pay or redundancy pay; worry about not being paid on time; longer, unsocial hours; little or no support and no company contribution to a pension.
“With more people moving into self-employment, there is a corresponding growing need for good business advice among freelancers, sole traders and microbusinesses.
“Those who are starting up and feeling the pressure should to talk to their business adviser for guidance and support.”