Model Two Question Essay on self employment
Nowadays many people choose to be self-employed, rather than to work for a company or organization
Why might this be the case?
What could be the disadvantages of being self-employed?
Give reasons for your answer and include any relevant examples from your own knowledge and experience.
Write at least 250 words.
Answer
There has been an increase in the number of job resignations for the sake of becoming an entrepreneur in many societies recently. There are also many school leavers who show apathy towards job applications because they want to be “employers of labour” and not employees. These trends are due to a number of factors, albeit the drawbacks entrepreneurs face.
To start with, the pitiable working conditions suffered by many private and public employees in some societies particularly in African countries discourage many young graduates from hunting for jobs. Poor and delayed pays, unhealthy work-life balance with few opportunities for career advancement in the Nigerian labour market for instance are enough reasons for the increased interest of many youths in government funded skill acquisition programmes. The goal here for many is to setup small scale businesses where they can use the skills they have acquired to earn income. The desire for independence to explore business ideas is another reason why a lot of employees are resigning from their jobs irrespective of the pay, to begin small and medium scale businesses. Self-employment provides room for freedom from superiors, a more controlled work-life status and for opportunities to implement entrepreneurial ideas without seeking approval from superiors or board members.
Nonetheless, there are pitfalls that can make the idea of becoming self-employed unattractive. First is the need to take risks from time to time. Entrepreneurship is for the “tough-hearted”, so this may not be a path suitable for risk-averse and indecisive employees to follow. Also, the need to constantly finance the business might be a big strain for the rookie entrepreneur. He may need to maintain a steady cash flow to stay afloat, an exercise that will require steady financing. In situations where loans are difficult to secure, an inexperienced start-up owner may see his growth prospects stifled.
One more challenge is the huge amount of hard work and discipline required to remain competitive in business. Many newbies in entrepreneurship are oblivious of the fact that it is harder to own a company than to work for one. They venture into entrepreneurship unprepared and learn the hard way. Little wonder why research has shown that not less than 50% of startups in Africa close down in their first five years.
In conclusion, a number of reasons explain the rise in self-employed individuals today. However, the problems this class of people faces cannot be underestimated. The bottom line is that individuals need to evaluate their capabilities to know if they are suited for entrepreneurship or for “employee-ship”.
(422words)
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