Lovely Kohli, Senior Accountant from specialist accountancy, Easy Accountancy, gives her views on why self employment really is a good thing for the economy.
Self Employment turns the wheels of the economy
The facts speak for themselves.
Four and a half million people are now self employed, accounting for 15 per cent of the UK workforce. The economy is on an upward turn and self employment is at a high. Although self employment cannot take all the credit, there is no doubt it is a contributing factor.
Self Employment bridges a gap in the workforce
Without the overheads of a permanent member of staff, self employed individuals often bridge a gap in a workforce at busy times, freeing up permanent members of staff to concentrate on the day-to-day running of the business. This often allows companies to take on extra work, helping them grow their business, which in turn helps increase the GDP of a country, and at a macro level oils the wheels of the economy.
Self Employment can bring new skills to a business
Working with those who are self employed is not only a way of temporarily flexing the workforce when times are busy, but can also help a business by completing tasks that they don’t have the skills or time to undertake internally. For example, a web designer could build a website that helps to generate more business, a freelance marketer can create more leads and a sales consultant could bring in new contacts and projects.
Self Employment can encourage people into the workforce
Many people who are self employed do so out of choice, not because they are unable to find work elsewhere. In a survey by our parent company SJD Accountancy, 74 per cent of those interviewed said that they consciously chose to be self employed as a career and 79 per cent said that they found being self employed rather than an employee more satisfying.
A high proportion who work for themselves like the flexibility of self employment. They like to pick their projects, have the ability to take time out of work if and when they want and the variety working for themselves brings.
From an economic point of view, this flexibility means more people are able to work the way they want to, bringing them back into the workforce and adding to the UK economy via their direct contributions.
Many who are self employed decide to follow the limited company route due to the tax advantages of doing so, which for some, could further increase their take home pay. However, before making the move to limited it is always recommended to consult with an accountant.
Those working for themselves might see their business as a small concern yet collectively they are a larger cog that contributes significantly to the UK’s economic future.
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Susie Hughes © Shout99 2014