Most contemporary economies allow such a model of employment as being self-employed, which appears very tempting for many. However, still the vast majority of people opt for being employed in a company and not to set up their own business. This essay will attempt to look into the key factors as to why people may prefer entrepreneurship and major drawbacks to it.
To start with, in many modern societies, including Russian, entrepreneurship is greatly encouraged with lots of business seminars and workshops advertised. These may range from slightly fraudulent to genuinely educational and supportive, and generally any information on setting up a company is easily accessible for those who are willing. And willing they are, as being a business person, the image itself has a certain feel of luxury, respectability and success. People are being told that they have no limits and can easily become as wealthy as Steve Jobs is they wish it.
This first reason is linked to the second, which is relevant for Russian and some other countries. Bank Loans are accessible too, and they are largely eagerly granted. If a future business person truly knows their business, it poses no threat. Nevertheless, easy access to setting up a company for someone inexperienced or insensible may cause a range of problems.
Apparently, the first issue that may perplex and unskilled entrepreneur is the necessity to be a jack of all trades (if the company is very small). Having taken the responsibilities of an accountant, PR or HR manager at the same time can be a burden and make the person wish they had never done it at all. If they hire other people to perform these tasks, they must pay more tax and provide their employees with decent working conditions. At the same time, business is usually a risky matter and in our competitive reality many of them go bankrupt. And last, but not the least – self-employed people are the only people responsible for their own vacations, sickness or maternity leaves or any job perks.
So, in a nutshell, being your own master has many downsides, that is why many people decide to play it safe.
Most contemporary economies
allow
such a model of employment as being self-employed, which appears
very
tempting for
many
.
However
,
still
the vast majority of
people
opt for
being employed
in a
company
and not to set up their
own
business
. This essay will attempt to look into the key factors as to why
people
may prefer entrepreneurship and major drawbacks to it.
To
start
with, in
many
modern societies, including Russian, entrepreneurship is
greatly
encouraged with lots of
business
seminars and workshops advertised. These may range from
slightly
fraudulent to
genuinely
educational and supportive, and
generally
any information on setting up a
company
is
easily
accessible for those who are willing. And willing they are, as being a
business
person, the image itself has a certain feel of luxury, respectability and success.
People
are being
told
that they have no limits and can
easily
become as wealthy as Steve Jobs is they wish it.
This
first
reason
is linked
to the second, which is relevant for Russian and
some
other countries. Bank Loans are accessible too, and they are
largely
eagerly
granted. If a future
business
person
truly
knows their
business
, it poses no threat.
Nevertheless
, easy access to setting up a
company
for someone inexperienced or insensible may cause a range of problems.
Apparently
, the
first
issue that may perplex and unskilled entrepreneur is the necessity to be a jack of all trades (if the
company
is
very
small
). Having taken the responsibilities of an accountant, PR or HR manager at the same time can be a burden and
make
the person wish they had never done it at all. If they hire other
people
to perform these tasks, they
must
pay more tax and provide their employees with decent working conditions. At the same time,
business
is
usually
a risky matter and in our competitive reality
many
of them go bankrupt. And last,
but
not the least
–
self-employed
people
are the
only
people
responsible for their
own
vacations, sickness or maternity
leaves
or any job perks.
So
, in a nutshell, being your
own
master has
many
downsides,
that is
why
many
people
decide to play it safe.