What is self-employment?
Subject: Business, Human Resource Management | Topics:

Introduction:

Self-Employment is working to earn a living. Payment could be in the form of wages or salaries depending on the nature of the work. In employment, the employer determines the where, when, how, why, and what of the work that is performed by the employee. The degree of input, autonomy and self-distractedness that an employee experiences on the job is a by-product of an employer’s philosophy of management and employment.

Types of employment

There are two types of employment:

  1. Self-employment: Self-employment is owning your own business alone or in partnership with others or with members of your family. It is the alternative to wage employment
  2. Wage employment: Working for someone, an organization or a company and getting for the work done.

Self-emplyment

Motives for self-employment

Self employment has some motives which you need to know. You may contact somebody or people who are already in self-employment to learn about them. However, here are a few suggested motives for self-employment.

  1. A person chooses to be self-employed if he/she:has a particular interest in the trade or business
  2. follows a family tradition: “my grandmother was a renowned caterer. My mother and elder sisters also are and therefore, I also want to be a caterer”
  3. has no other option of earning a living
  4. is meeting the present and future needs

Dear learner, the knowledge of the background to employment situation in Ghana will enhance your decision on your employment

Advantages of self-employment

Self-employment has several advantages. Can you think of some of them? Your list may include any of the following. Being self-employed enables a person to:

  1. lead rather than follow
  2. be creative and implement ideas
  3. have the potential for increased income with hardwork
  4. be independent
  5. take initiative, make own decision at own pace
  6. control his/her own workplace and the work that needs to be done
  7. continue to learn more about business each day and this could provide an opportunity for self-fulfillment
  8. be in business beyond retiring age.

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