Just like any other thing, being an independent worker also has its bad side. The fact that you own this project means you are fully responsible for whatever happens to it. Be it failure or success. I would say the disadvantages of self employment come in when you get too comfortable. Lets look at the disadvantages that come with being an independent worker.
Mira Grant Quote.
2. 10 Disadvantages Of Being An Independent Worker.
Lets learn from Joy’s story :
Joy's story:
Joy a lady i know got a job in a certain company as an accountant. She started working in 2015. She says the job was so demanding. They could call her to perform certain office duties even at night. She wasn’t enjoying the job anymore though she was earning a fair pay. There was a lot of pressure and tension at work. She sat down and thought over everything and came up with a decision – she needed to be self employed. To cut the story shot, Joy saved her money and in 2020, she was able to start her own business.
When i met joy earlier this year 2024, she told me she’s self employed but wouldn’t advise anyone who is an employee to quit their job. She told me the challenges she is facing as an independent worker are;
1. The taxes are high. Joy says they charge much money to get a trading license yearly and if you don’t pay they inconvenience you- the Revenue Authority. e.g. You are taxed depending on the business you do. This is how challenging being an independent worker can be. All taxes on your head.
2. The earnings/profits are not constant. This week you get highly the other week its a drop down. She says she doesn’t have a stable income like she used to have when she was an employee. Because with being an employee, she explained-you know your monthly or daily income. Planning is easy unlike being an independent worker.
3. Sales are seasonal. Jane also sells scholastic items like bags, books etc. She said some seasons when its school time they buy many scholastic items but when its holiday time -no sales.
4. It takes hardwork. Joy said she has to make sure she works so hard even up to weekend to make sure the business doesn’t collapse. She works so hard so that she can raise some money from her business.
5. Balancing is hard. Joy says that balancing daily earnings to expenses is quite challenging. You might end up tempering with capital to cover up certain expenses like rent. This is because you entirely depend on this business for everything.
6. There’s a lot of fatigue and stress. Joy said, “for the past 2 weeks i haven’t slept- i have been stressed thinking about the fate of my business”. Questions like is the business going to last for long, what am is she supposed to do to make it progress?
7. Joy said she was better off being an employee than self employed. Because with this “no one puts you on pressure so its up to you to go and open the shop or not” she said with a sad face. There’s no driving force in being self employed you just have to motivate yourself to work.
8. Joy said that even when she is sick she got to work. There are no employee benefits like she used to get those days at work e.g. sick leaves, no maternity allowances, retirement savings. This means she has to work to get money for such.
9. There is increased responsibility at work. She told me, ” can you imagine last night i had to stay at work till late”-why? Because i was correcting the errors in the books of accounts. Her accountant had made many errors.
9. It is demanding. She told me being an employee is demanding but self employment is ‘over’ demanding. You put in your whole effort to make sure things normalize. From recruiting the right labour to work with, catering for all expenses like food for employees etc.
10. Financial Support. Joy said because she doesn’t have a stable income, she looks for financial support from money lenders. However Jane said that getting a loan is quite hard, the process is long, and they need real security. And also clearing the loan is hard because earnings fluctuate. Today you get high, tomorrow low. She added that there are times a loan will be the only option to rise again from a collapsing business.
Conclusion:
Basing on Joy’s story, being an independent worker is not that easy. It takes self sacrifice and quite challenging than being an employee. I would base on this to say, independent workers are going through a whole lot. If the business collapses the blame is on you. Lets learn the disadvantages of being an independent worker because they will help us learn how thing’s flow when we are there.
