What type of business should I have?

SELF-EMPLOYED OR STARTING A MICRO BUSINESS?  Did you know that almost one in seven people in the UK are self-employed?

You might also classify self-employment as “freelance work”. UK research suggests that 30% of those who work in the media call themselves “freelance”.

Research by Skills Development Scotland noted that the creative sector is dominated by sole traders, micro and small businesses. Approximately 13,500 businesses employ 0 to 49 employees and accounted for nearly 98% of the total number of businesses in 2014. This is an increase of 35% in the number of small and micro businesses since 2009.

So why start a micro business or become self-employed?

The Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA) conducted a survey in which 27% of people who moved into self-employment within the last 5 years said they did so to escape unemployment.

The Government 2015 Workplace Employment Relations Study reported that microbusinesses accounted for 33% of private sector employment and 19% of total output. Although microbusiness employees tend to earn less, receive less training, and have fewer benefits, it found that these employees were also the most satisfied group of workers in the labour market. Factors like job control influence in decision-making, business loyalty and even satisfaction with pay.

 

The benefits of a micro business or becoming self-employed include:

 

  • Flexible working hours
  • Ability to choose your work
  • Developing a relationship with customers who you want to work with
  • Ability to respond quickly to opportunities
  • Making a greater impactHowever there are drawbacks which include:
  • No sick pay, holiday pay or redundancy pay
  • Little or no support, training, no back up if you can’t work
  • Not a 9 to 5 job - it’s 24 hours a day
  • No company contribution to a pension
  • What if I can’t get paid on time?Micro-businesses and self-employed people need assistance and if you are starting up or feeling the pressure get in touch with us as we will be able to support you.
Accountancy, Business Advice, ITtaxswagbusiness, Skills, Research, UK, Government, microbusinessesComment