There are so many different reasons why people decide to make the leap into self-employment. You might want a better work/life balance and more flexibility.
You might have had enough of being an employee or have a strong desire to pursue a passion or interest.
Several recent surveys show that the biggest motivator for people to go it alone is the desire to be their own boss.
In this article, we look at some of these findings and explore why now is a great time to become self-employed.
A desire to work for yourself is the most significant driver towards self employment
A new survey by a leading insurer, Markel, shows that the desire to be your own boss is the most significant motivational factor for people who start a new life working for themselves.
In a poll of 500 people, 66% of respondents said this was a key factor for becoming self-employed. Having greater autonomy was even more important to women (69%) than men (62%).
Fortunately, if – like most visitors to the ByteStart site – you’re thinking about going it alone, there has arguably never been a better time to do so.
Why it is easier now than ever to work for yourself
This doesn’t mean it’s easy to run a successful small business – it isn’t, but changing working patterns and improved technology have conspired to give individuals a solid platform to get started.
Here are some key factors identified by the ByteStart team:
1. Improvements in technology
The rise of platforms like Etsy, Upwork, Fiverr, and Shopify has made it easier to start a business or work as a freelancer. You can sell services and products or create content globally from your home.
Tools like Google Workspace, Zoom, and Microsoft 365, as well as collaboration platforms like Slack and Zoom, make remote working easy.
Accounting, project management, and client relationship management software (like FreeAgent, Xero, QuickBooks, and Trello) reduce your time on administrative chores.
The continued rise of online shopping and direct-to-consumer businesses makes it easier to run an online business, without needing a physical store.
Tools like Instagram, LinkedIn, YouTube, and Facebook Ads have democratised reach. With the right knowledge, you can access a potential global clientele without breaking the bank.
2. Changing employment patterns
COVID accelerated the move towards remote working, and many companies have continued flexible work options (although there is now a backlash in some sectors). This remote working experience may give individuals more confidence to run their own businesses from home, rather than as employees.
Entrepreneurship and freelancing are now more of a career choice, rather than a risky alternative to traditional employment.
Corporate restructuring, automation, and economic uncertainty have made traditional jobs less secure. Many people are turning to self-employment to gain more control over their careers.
More companies are using freelancers for short-term projects. There are dozens of massive platforms where you can showcase your freelance talents – although competition can be fierce on sites like Fiverr and Upwork as you compete with freelancers worldwide.
Flexible working has become the norm for many employers, providing a better work-life balance, especially among younger generations. Self-employment provides even more freedom, albeit with greater risks from working autonomously.
What other drivers are there towards self employment?
Respondents to the Markel study also cited these additional drivers towards becoming your own boss
Flexibility (mentioned by 55%)
Escaping traditional employment structures (34%)
Pursuing a passing (34%)
Having a higher earning potential (23%)
Success of a side hustle (18%)
What are the biggest challenges faced by small business owners in the UK
Due to improved technology and changing employment patterns, it has never been easier to physically set up a new small business as a sole trader.
However, there are many challenges.
The economic climate is very uncertain, and we are all being taxed more than ever. It is unsurprising then that this is the biggest challenge identified by the survey. Almost half have experienced a fall in revenue over the past year.
The cost of living crisis – including rising overheads and energy costs has eroded the value of any profits generated by self-employment.
Reasons to be optimistic
However, there are many reasons to be optimistic if you’re considering starting your own business.
Self-employment has arguably never been a more attractive option, thanks to the incredible flexibility, autonomy, and opportunities provided by technology and changing work patterns.
The rise of digital platforms and online tools has made starting a business or freelancing easier and more accessible than ever.
At the same time, shifts toward remote working and entrepreneurship have become the ‘norm’ rather than the exception.
As always, the same rules apply if you want to run a successful business.
Make sure there is a market for your business idea.
Keep an eye on your cash-flow at all times.
Network and build relationships.
Provide exceptional service to your customers and clients.
