An increasing number of individuals have recently chosen to start their own business over being employed under an organization. This increasing trend could be due to two main reasons, namely, the advancement of technology and greater ability to work more independently. Furthermore, this essay will stress the possible drawbacks of these start-up businesses, which are high risk associated with the business and lack of other benefits provided by an employer.
The main reason for this shift could be due to technological improvements that provide a plethora of new business concepts together with convenience to create a suitable home office environment. A recent study conducted in the UK has shown that more than 40% of the employees have left their current positions in corporates in order to start their own entities. Another key contributor to this change is, the ability to be more independent and work under your own initiatives rather than someone else’s instructions. For instance, Steve Jobs, the mastermind behind the multimillion Apple products has stated that moving from his last employer and taking the initiative to start his own business gave him a greater ability to think more independently and be more creative with his ideas. The above factors could be considered as contributors to this recent work shifting trend.
When considering the plausible drawbacks of self-employment, one of the key factors is the high level of risk. As these individual entities are not yet established and face intense competition from the market there is a risk of failure associated with the business. A good illustration is, in Silicon Valley itself, more than 35% of new enterprises do not survive at least a year due to the competition in the market. In addition to this, there will be a reduction in the benefits provided to the employees compared to entrepreneurs. Added benefits such as insurance, welfare allowances, and company-sponsored training, both local and foreign will be reduced as may start-up businesses lack large amounts of funds like many companies. These can be identified as the negatives of self-employment.
To conclude, self -employment is selected by many individuals recently over working under an employer. This change is due to technological developments and greater independence in work. This essay further discusses the cons of this practice, which are exposure to high risk and reduction in employee benifits which should be considered before choosing to start your own business.
An increasing number of individuals have recently chosen to
start
their
own
business
over
being employed
under an organization. This increasing trend could be
due
to two main reasons,
namely
, the advancement of technology and greater ability to
work
more
independently
.
Furthermore
, this essay will
stress
the possible drawbacks of these
start
-up
businesses
, which are high
risk
associated with the
business
and lack of other benefits provided by an employer.
The main reason for this shift could be
due
to technological improvements that provide a plethora of new
business
concepts together with convenience to create a suitable home office environment. A recent study conducted in the UK has shown that more than 40% of the employees have
left
their
current
positions in
corporates
in order to
start
their
own
entities. Another key contributor to this
change
is, the ability to be more independent and
work
under your
own
initiatives
rather
than someone else’s instructions.
For instance
, Steve Jobs, the mastermind behind the multimillion Apple products has stated that moving from his last employer and taking the initiative to
start
his
own
business
gave him a greater ability to
think
more
independently
and be more creative with his
ideas
. The above factors could
be considered
as contributors to this recent
work
shifting trend.
When considering the plausible drawbacks of self-employment, one of the key factors is the high level of
risk
. As these individual entities are not
yet
established and face intense competition from the market there is a
risk
of failure associated with the
business
. A
good
illustration is, in Silicon Valley itself, more than 35% of new enterprises do not survive at least a year
due
to the competition in the market.
In addition
to this, there will be a reduction in the benefits provided to the employees compared to entrepreneurs.
Added
benefits such as insurance, welfare allowances, and
company
-sponsored training, both local and foreign will be
reduced
as may
start
-up
businesses
lack large amounts of funds like
many
companies
. These can
be identified
as the negatives of self-employment.
To conclude
, self -employment
is selected
by
many
individuals recently over working under an employer. This
change
is
due
to technological developments and greater independence in
work
. This essay
further
discusses the cons of this practice, which are exposure to high
risk
and reduction in employee
benifits
which should
be considered
before
choosing to
start
your
own
business
.