essay about self employment

Essay on Self Employment

Students are often asked to write an essay on Self Employment in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Self Employment

Introduction.

Self-employment refers to working for oneself rather than for an employer. It offers the freedom to choose your work, set your schedule, and manage your income.

Self-employment can be rewarding. You can follow your passion, have flexibility, and potentially earn more. It allows creativity and independence.

However, self-employment also has challenges. It can be risky, stressful, and requires discipline. You may face financial instability and lack of benefits.

Despite the challenges, self-employment can be a fulfilling career choice. It requires careful planning, perseverance, and resilience.

Also check:

Advantages and Disadvantages of Self Employment
Paragraph on Self Employment

250 Words Essay on Self Employment

Introduction to self employment.

Self-employment, often portrayed as the epitome of personal freedom and financial independence, is an increasingly popular choice among individuals. It is a lifestyle that allows individuals to create their own work environment, set their own hours, and determine their own income based on the effort they put in.

The Appeal of Self-Employment

The allure of self-employment lies in its potential for personal and financial freedom. It offers an escape from the 9-to-5 grind, enabling individuals to pursue their passions and interests. Moreover, it provides the opportunity to directly reap the benefits of one’s hard work, rather than having the fruits of labor divided among various stakeholders in a traditional employment setting.

Challenges of Self-Employment

Despite its appeal, self-employment isn’t without its challenges. It requires a high level of self-discipline, resilience, and financial management skills. The lack of a guaranteed income can lead to financial instability, especially in the early stages. Moreover, self-employed individuals often have to wear many hats, dealing with marketing, finance, and operations, all while delivering their core services.

Conclusion: The Future of Self-Employment

The rise of the gig economy and digital platforms has made self-employment more accessible than ever. However, it is not a one-size-fits-all solution. Individuals must carefully consider their skills, risk tolerance, and personal goals before venturing into self-employment. Despite its challenges, for those who value autonomy and are willing to navigate through uncertainty, self-employment can be a rewarding career choice.

500 Words Essay on Self Employment

Self-employment, a concept that has been around for centuries, is becoming increasingly popular in today’s fast-paced world. It is the practice of creating one’s own job, rather than working for an employer. Self-employment can take on many forms, from freelancing and consulting to building a startup. It is a path that requires ambition, resilience, and a great deal of independence.

The Rise of Self-Employment

The landscape of work is changing, and self-employment is at the forefront of this transformation. Technological advancements, particularly the internet, have made it easier to start and run a business. Digital platforms have created a new economy where people can offer their skills directly to consumers or businesses, bypassing traditional employment structures. This shift is not just about convenience; it also reflects a changing attitude towards work. More people are seeking autonomy, flexibility, and the ability to pursue their passions.

The Pros and Cons of Self-Employment

Self-employment offers numerous benefits. It provides freedom to choose the type of work, the clients, and the working hours. It can lead to a more balanced lifestyle and potentially higher income. Moreover, it offers the satisfaction of creating something on your own and seeing it grow.

However, self-employment also comes with challenges. It often means longer hours, especially during the initial phases. There is no guaranteed income, and financial instability can be stressful. Self-employed individuals must also handle all aspects of their business, from marketing to accounting, which can be overwhelming.

Skills for Successful Self-Employment

Successful self-employment requires a unique set of skills. Entrepreneurial skills such as creativity, risk-taking, and strategic thinking are crucial. Equally important are technical skills related to the specific job or industry. For instance, a freelance graphic designer needs to be proficient in design software.

Additionally, self-employed individuals must be adept at time management and self-discipline. They need to be resilient, able to handle setbacks and failures. Furthermore, they must be continuous learners, adapting to new trends and technologies to stay competitive.

In conclusion, self-employment is a viable and increasingly popular career path. It offers numerous benefits, including autonomy, flexibility, and the potential for higher income. However, it also comes with challenges, such as financial instability and the need to manage all aspects of the business. To succeed in self-employment, individuals must possess entrepreneurial skills, technical skills, and a resilient mindset. As the world of work continues to evolve, self-employment will likely play a significant role in shaping the future of our economy.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

Essay on Job Employment
Essay on Employment
Essay on Emotions

Apart from these, you can look at all the essays by clicking here .

Happy studying!

IELTS Model Essay: Self Employment

This week’s IELTS model essay is one of my favourite tasks! It’s on the topic of self employment:

Nowadays many people choose to be self-employed, rather than to work for a company or organisation. Why might this be the case? What could be the disadvantages of being self-employed?

Cambridge IELTS Academic 14 Test 4

In effect, this is an ‘advantages – disadvantages’ essay in disguise! The first question ‘why might be the case’ is really asking you for the advantages of self-employment. People choose to be self-employed because there are advantages.

So I think the question could be worded like this:

Nowadays many people choose to be self-employed, rather than to work for a company or organisation. What could be the advantages and disadvantages of being self-employed?

If you find it difficult to generate ideas for this task , you can simply search online for “advantages and disadvantages of self employment”. You will get lots of ideas! Here are some interesting articles:

https://www.nutcache.com/blog/self-employed-worker-advantages-disadvantages/
https://freelancinghacks.com/advantages-and-disadvantages-of-being-self-employed/

It’s probably a good idea to include some comparisons between self-employment and working for a company, because the topic isn’t only about self-employment: it includes the phrase “ rather than to work for a company or organisation” . So some comparative language is useful, and will increase your range of vocabulary too.

Reasons why (advantages)

Potentially higher earnings

may only get a small annual pay increase
self-employment: working harder can mean big financial rewards
don’t have to do what your boss tells you to do
e.g. make your own decisions
more flexibility with working hours / work

Disadvantages

Greater risk

no guaranteed income in self employment
employed people get regular pay
problem if you have mortgage
difficult to take holidays, may have to work weekends / evenings
working for someone else usually has fixed hours, finish by 5pm

This essay is quite long, so I decided to split my essay into four body paragraphs . This will make it easier for my reader to see the structure of my essay.

There seems to be a growing trend of people around the world choosing to be self-employed rather than to work for a company. This essay will consider the reasons for this as well as the drawbacks of working for yourself.

One of the main attractions of self-employment is the opportunity for higher earnings than you might receive when working for a company. In the latter, salaries are determined by your boss and increases are often limited, regardless of how hard you work. If you work hard as a self-employed person, the financial rewards are potentially unlimited, especially with online businesses. For example, using social media advertising can allow a solopreneur to rapidly increase sales.

But money is, for many people, not the main incentive of working for oneself. Instead, it’s the sense of autonomy you receive. You no longer have to do what your line manager tells you to do; instead, you can make your own decisions. This allows you to enjoy greater flexibility over things like working hours and the kind of work you do.

However, there are drawbacks to self employment. Firstly, there might be considerable financial risk. There is no guarantee of income, unlike those who receive regular pay cheques from their boss, and it’s not unusual to see new small businesses fail due to a lack of money. This is quite daunting for people who have regular expenses such as a mortgage, and so many people prefer the safety afforded to them by working for someone else.

Additionally, working for yourself will usually entail working long hours, sometimes at weekends and in the evening, leaving little time for the kind of recreation time enjoyed by workers who simply stop work at around 5pm. Furthermore, it may be difficult to take holidays if you work for yourself, so the work-life balance for self-employed people can be a problem.

In short, self-employment isn’t for everyone. There are clear drawbacks related to money and time, but for many people, the attraction of greater success and satisfaction is worth the risk.

(341 words)

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Self-Employment: Definition, Types, and Benefits

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What Is Self-Employment?

Understanding self-employment, benefits of self-employment, disadvantages of self-employment, types of self-employment, special considerations.

Self-Employment FAQs

The Bottom Line

Self-employment is earning income without being employed and paid by someone else. Self-employed persons may be involved in a variety of occupations but generally are highly skilled at a particular kind of work. Writers, tradespeople, freelancers, traders/investors, lawyers, salespeople, and insurance agents all may be self-employed.

Key Takeaways

Those who are self-employed work solely for themselves, working directly with clients.
Those who are self-employed are not required to withhold taxes; they are generally required to pay estimated taxes quarterly.
Self-employment can provide a great deal of job flexibility and autonomy; however, it also comes with a greater degree of employment risk and a cyclic or varying income.

Although the precise definition of self-employment varies among the U.S. Bureau of Labor Statistics (BLS), the Internal Revenue Service (IRS), and private research firms, those who are self-employed generally include people who perform work for pay, independent contractors, sole proprietors of businesses, and individuals engaged in partnerships .

A self-employed person is anyone who earns their living from any independent pursuit of economic activity instead of earning a living working for a company or entity. A freelancer or an independent contractor who performs all of their work for a single client may still be a self-employed person.

Self-Employed vs. Ownership

Being self-employed is not necessarily the same as owning a business. A self-employed person usually is the business, whereas a business owner might own the company but not be involved in operating or managing it.

While self-employment generally requires much more work and attention, many benefits are attractive:

You are your own boss
You decide what projects you will work on
You work the hours you want
You can specialize in work you enjoy rather than working for pay doing something you may not like

One of the most significant disadvantages of self-employment is that there is no entity withholding and paying your estimated taxes or withholding—you're required to pay estimated federal taxes quarterly. Some other disadvantages are:

There are no paid days off or paid vacation time—a day off is one day of no pay
There are no health or retirement benefits—you have to fund and manage your own
You must ensure you remain profitable and busy, finding work for yourself
You must ensure you abide by the tax laws, filing requirements, and any applicable fees in your state and county

Independent contractors are businesses or individuals hired to do specific jobs. They receive payment only for the jobs that they do. Because they are not considered employees, they do not receive benefits or workers’ compensation , their clients do not withhold taxes from their payments for work performed, and equal opportunity laws do not apply to them.

Examples of independent contractors include doctors, journalists, freelance workers, lawyers, actors, and accountants who are in business for themselves. It is worth noting that independent contractors are not just limited to specialized fields and can include various jobs.

Sole proprietors are the only owners of unincorporated businesses, while partnerships involve two or more self-employed people who form a business together. Independent contractors, sole proprietors, and partnerships often hire a few employees to help them with their work.

9.8 million

The number of self-employed and unincorporated individuals in the U.S. as of February 2024.

It is estimated that freelancers, particularly in what is known as the gig economy , will continue to grow. There were approximately $67.6 million freelancers in 2021, which is expected to grow to $86.5 million by 2027. It is expected that 50.9% of the workforce will be freelancers by 2027.

A self-employed person must file annual taxes and pay an estimated quarterly tax . They are also typically required to pay what is called the self-employment tax of 15.3% in addition to income tax. Of this tax, 12.4% goes to Social Security on the first $168,600 in 2024, and 2.9% goes to Medicare tax.

Those who make less than an annual net profit of $400 are exempt from paying taxes on that income.

What Are the Main Types of Self-Employment?

The main types of self-employment types are independent contractor, which is an individual working a specific job; a sole proprietorship, which is a business enterprise run by an individual and which may or may not have additional employees; and a partnership, which is a business structure between two or more individuals with ownership status.

How Do You Show Proof of Income If You Are Self-Employed?

Proof of income may be required in various instances, such as filing taxes, obtaining a mortgage or other loan, or purchasing health insurance. Ways to show proof of income if you are self-employed include tax returns, Form 1099, bank statements (both personal and of the business account), audited profit and loss statements, and official invoices.

What Are the Benefits of Being Self-Employed?

The benefits of being self-employed include being your own boss, creating your own schedule, flexibility, working towards your dreams, enjoying the challenges of starting something from scratch, choosing the people you work with, and creating your own work environment.

A self-employed person is their own boss. They don't work for a specific company or individual who pays them a set amount periodically, conveniently paying half their Social Security and Medicare taxes. They more or less decide when they'll work and when they won't.

This might sound tempting, but the bottom line is that a self-employed person is their own employer, which translates to the individual having to pay both the employee and the employer portions of Social Security and Medicare taxes. They must make periodic income tax payments to the IRS because their clients or customers won't withhold the money from what they're paid and send it to the government on their behalf. They must also foot the bill for supplies, equipment, and office space.

The tradeoff can nonetheless be tempting, but it's important to consider the benefits and disadvantages carefully if you're considering going out independently as a self-employed person.

Internal Revenue Service. " Self-Employed Individuals Tax Center ."

U.S. Equal Employment Opportunity Commission. " Coverage: Deciding Who Is Covered ."

Internal Revenue Service. " Sole Proprietorships ."

Internal Revenue Service. " Tax Information for Partnerships ."

U.S. Bureau of Labor Statistics. " The Employment Situation—July 2023 ." Page 20.

Statista. " Number of Freelancers in the United States From 2017 to 2028 ."

Social Security Administration. " How Is Social Security Financed? "

Internal Revenue Service. " Self-Employment Tax (Social Security and Medicare Taxes) ."

Self-Employment: Definition, Types, and Benefits 1 of 20
What Does It Mean to Be a Self-Employed Person? 2 of 20
Independent Contractor: Definition, How Taxes Work, and Example 3 of 20
What Is a Freelancer: Examples, Taxes, Benefits, and Drawbacks 4 of 20
Gig Economy: Definition, Factors Behind It, Critique & Gig Work 5 of 20
California Assembly Bill 5 (AB5): What's In It and What It Means 6 of 20
5 Challenges for Self-Employed Finance Professionals 7 of 20
Healthcare Options for Small Businesses: A Comprehensive Guide 8 of 20
Best Health Insurance Companies for the Self-Employed 9 of 20
Choosing Disability Insurance for Self-Employed Individuals 10 of 20
How to Get a Mortgage When Self-Employed 11 of 20
Money Guide for Self-Employed Parents 12 of 20
How to Calculate Your Self-Employed Salary 13 of 20
SEO for Small Businesses: Everything You Need to Know 14 of 20
How to Build Your Own Retirement Plan 15 of 20
How Social Security Works for the Self-Employed 16 of 20
Saving for Retirement When You Don't Have a Regular Job 17 of 20
Simplified Employee Pension (SEP) IRA: What It Is, How It Works 18 of 20
A 401(k) Plan for the Small Business Owner 19 of 20
SEP IRA vs. Solo 401(k): Which Is Better for Business Owners? 20 of 20

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Essay on Business

Example Of Essay On Self- Employment

Type of paper: Essay

Topic: Business , Time , Training , Skills , Company , Workplace , Management , Education

Published: 03/05/2020

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Self-employment refers to the earning livelihood by working for oneself and not for other companies. The person is said to be self-employed if generates his income directly from customers or organizations. He is the owner of a business, sole proprietor; independent contractor or he may be a partner is a partnership. In general, a self-employed person is not an employee of another business or company. Such individuals are responsible to pay their income taxes themselves to the legislative department. One of the many challenges that self-employed persons face is the time flexibility. When a man is working for another company, he is regular and punctual, as he knows there are many managers above him supervising his progress. He has some deadlines to meet and he knows of he misses any he will be held accountable to a person with higher post. On the contrary, when a person is self-employed there are no specific working hours. One may work anytime one wants to. In this way, the business is often neglected, as the person does not give enough time to it. Strong determination and continuous motivation is needed for a self-employed person to maintain business productivity. Another major challenge is the setting up of business. Such individuals often have to cut down their expenses during the initial stage of their business. It is very challenging to manage to accounts, profit records, customer dealings, all at one time. There are also different laws and tax payment rules for self-employed rules, which further aggravate their challenges. People choose to become self-employed mainly because of time flexibility. They have the opportunity to choose their own working hours, according to their routine. They can easily mold their schedule as per need. However, it is extremely important to give enough time to business to avoid future problems. Secondly, people like the idea of being free and independent. Such men do not the like the idea of working under a boss instructing them to follow his orders. They love the idea of implementing their own thoughts without the interference of another person. This freedom also allows the person to enjoy the fact that he does not have to share his profits with another person. In this way, self-employed persons received greater job satisfaction, which is also one of the major reasons why people opt for such type pf employment. The adult education coordinators should enhance especially the organizational and managerial skills of those individuals who are willing to become self-employed. This is because a self-employed person has to perform all the tasks himself. He is not dependent on other person’s skills and capabilities. Therefore, it is essential to have organizational skills himself to follow his business plan, implement the designed strategies and manage everything carefully on time. Through this training, people can be trained to become regular and punctual, disciplined and organized. In addition, the adult education coordinator should also focus on the verbal and writing communication skills of individuals. This will make sure all self-employed persons can easily communicate with their clients and express their requirements. Otherwise, it will be impossible to perform most of the business tasks. Such type of training will also enable the individual to advertise its company to client. He can market himself in a more comprehensive manner. The training programs are essential for individuals who desire to become self-employed. The market today consists of tough competition. Therefore, an individual who lacks even one of the characteristic needed in the persona of a self-employed person, his company will be left far behind the others.

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IELTS Essay on Employment

Posted by David S. Wills | Aug 6, 2020 | Model Essays | 0

There are many IELTS writing topics but one of the common ones is employment . This means anything relating to the idea of working. (Of course, it could also be the opposite: unemployment .) In any case, today I will explain how to write an IELTS essay on employment.

We are going to look at two examples of IELTS writing task 2 questions about employment and then I will show you my two sample answers.

IELTS Writing Questions about Employment

The topic of employment could arise almost anywhere in the IELTS exam but it is quite common in task 2 of the writing test. In fact, the scope for what sort of question you could be asked is immense! You could be asked about employment and:

Environment
and much more

In short, you cannot really prepare for this by guessing the questions or having any expectation of a particular topic. Just know that you might have to write an essay about employment and that you will need to read it carefully.

IELTS Essay #1: Self-Employment vs Traditional Employment

First of all, let’s look at an IELTS writing question about 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?

This is a two-part question , which means you should aim to answer both questions in the body of your essay. In a sense, this makes it much easier to understand the question and structure your answer.

However, let’s make sure that we understand it perfectly.

Question analysis

Premise: In the modern era, many people work for themselves. This is different from the past, when they worked for companies.

We have to write about two things:

Why this has happened.
What are the disadvantages.

In a sense, this is a rare instance where the two-part question and the advantages-and-disadvantages question come together! You can see how #1 is sort of asking for the advantages, and #2 specifically asks for disadvantages.

How interesting!

Common Problems

I have often seen my writing correction students make the mistake of confusing freelancing, self-employment, and working from home. There can obviously be some overlap between these but there are also important distinctions:

To answer this question, I would take a pretty simple, four-paragraph structure for my approach. It would look like this:

Sample Band 9 Answer

It is quite common nowadays for people to be self-employed, rather than working for a company or organization. This essay will look into the reasons for that change, and then discuss some of the disadvantages of being self-employed.

In the information era, it is quite possible for people to work at home on their computer. The internet has opened up all sorts of possibilities in terms of making money, and so people may work as freelancers or start their own company. It has never been easier to do this because in the past working for yourself required renting an office or shop, whereas now you can simply set up a website or social media profile. People typically prefer this because it allows them a great deal of freedom. A person who prefers nights and loathes waking up early might choose to conduct their business at night, whereas someone who likes to travel might work from a laptop while visiting different places.

Of course, there are some disadvantages to being unemployed. This sort of employment lacks the security of a traditional job. In most countries, workers are protected by laws that guarantee them certain rights. However, with no employer and no workplace, these laws do not apply. Similarly, traditional jobs provide pension plans and health insurance, but when you work for yourself you have to provide these yourself, and they are not cheap. In fact, most self-employed people simply forego these things and take the risk as a part of their comparatively free life.

In conclusion, being self-employed allows people a far greater degree of freedom in their life, but there are several significant drawbacks that mean this sort of work is not suitable for everyone.

Note: This essay originally appeared here .

IELTS Essay #2: Job Satisfaction

Next, we will look at an IELTS essay on employment that deals specifically with the interesting issue of job satisfaction:

As most people spend a major part of their adult life at work, job satisfaction is an important element of individual wellbeing. What factors contribute to job satisfaction? How realistic is the expectation of job satisfaction for all workers?

This is another two-part question. What a coincidence!

Question Analysis

In order to understand this question, we can again look closely at its premise:

Premise: Job satisfaction is important for a person’s wellbeing.

You have to write about:

The factors that make people satisfied with their work
Whether or not it is realistic for everyone to achieve job satisfaction

You should aim to write about all of this without straying off topic.

A lot of people seem to misunderstand or overlook the second question, which asks whether it is realistic for everyone to have job satisfaction . This can be a difficult thing to discuss with any depth, but you need to address it as best you can.

Here is how I will plan my IELTS essay about job satisfaction:

Although some people think that a high salary is the most important part of a job, the truth is that job satisfaction is probably more important. This essay will look at some of the factors contributing to this, and then argue that it is a reasonable expectation to have some degree of job satisfaction.

Every person is different and so defining job satisfaction is not an easy task. However, it could be stated that in order to provide this to employees, employers must give them a good justification for doing their job. The reason for this is that having a sense of satisfaction with one’s job largely comes from feeling a sense of purpose. People who feel that their efforts are useless or unappreciated invariably feel no job satisfaction. In addition to this, it is important that a person is given some degree of responsibility and autonomy with their tasks. Having a supervisor monitoring every single action presents a lack of trust and creates an atmosphere of oppression. When these two factors are met, they can result in workers who feel satisfied with their positions.

It may seem unlikely that people can achieve this because ever since the industrial revolution, it has been normal for people to work long hours in order to make money to survive, with little thought given to making workers happy or comfortable. However, in the modern world there is no good reason why this cannot be a new target. Employers should strive to give their employees dignity in the workplace, instead of maximizing productivity. Whether this is likely or not depends on social expectations and workplace laws, but it is certainly possible if the effort were made.

In conclusion, job satisfaction occurs when people are given tasks that matter and then offered some degree of responsibility. This could be given to everyone with the right motivation, although it is also possible that it may not happen.

Ok folks, I hope that was helpful for you. Now you can go and write your own IELTS essay on employment. Remember that there are many possible questions and so you should not assume that these two will appear in your next test. Also note that the topic of employment could appear in task 1 as a line graph of employment rates or any other sort of visual representation of employment and unemployment.

About The Author

David S. Wills

David S. Wills is the author of Scientologist! William S. Burroughs and the 'Weird Cult' and the founder/editor of Beatdom literary journal. He lives and works in rural Cambodia and loves to travel. He has worked as an IELTS tutor since 2010, has completed both TEFL and CELTA courses, and has a certificate from Cambridge for Teaching Writing. David has worked in many different countries, and for several years designed a writing course for the University of Worcester. In 2018, he wrote the popular IELTS handbook, Grammar for IELTS Writing and he has since written two other books about IELTS. His other IELTS website is called IELTS Teaching.

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