A recent poll of over 1,000 Americans shows that a majority of the population wants to be self-employed, but not because they’re looking to get rich. Of the 55% who said they would prefer to be self-employed, 51% cited personal freedom as their main reason for this career wish. Only 7% stated financial reasons as the compelling factor behind their self-employment dreams. Can self-employed professionals expect to get the satisfaction they crave from self-employment? The survey shows that many aren’t willing to try…and if they do, they’re facing a bumpy road.
Entrepreneurial Dreams
Self-employment and home-based business don’t always go hand-in-hand. Gallup’s results show that only 2% of respondents desire to be self-employed because they have a business idea. The Internet has opened up many new job opportunities in many markets, providing professionals with work at home opportunities that make many types of self-employment possible. But, poll participants still aren’t feeling that hopeful about their chances to become independently employed.
Less than half of the answerers, 41% to be precise, said they think it will be possible for them to become self-employed within the next five years. Their lack of faith is reflected in the numbers: in the year 2000, a similar Gallup poll showed that 69% of Americans dreamed of self-employment. In 2009, that number was down to 55%.
But, is it Freeing?
The dream may be growing slowly less popular, but self-employment is still the promised greener pasture for some professionals…right?
As long as that pasture is a well-organized machine that’s run by careful budgeting, yes. The truth is, self-employment is indeed very freeing in some ways. Professionals who work at home or otherwise employ themselves set their own hours, make their own dress code and set the rules when it comes to their office space. On the other hand, being self-employed will also make professionals face more responsibilities than ever. Not having a boss and being totally independent doesn’t always feel great -- like once a month, when the health insurance bill arrives.
Self-Employment Responsibilities
With no employer taking care of all the loose ends and red tape, self-employed professionals are solely responsible for providing their own health insurance and paying their own income taxes. Employers who hire freelance workers and independent agents do not subtract state, federal and other income taxes from the payments they provide -- this leaves the burden of responsibility on the professional. In addition to paying income taxes, independent professionals must also pay the self-employment tax.
Being self-employed definitely doesn’t mean being without responsibility, but it still provides personal freedom. Independent professionals choose their jobs, set their own pace and make all the decisions. All the responsibilities that come with the job are just another facet of that freedom.
KC Morgan - KC Morgan has been the featured writer in Self-Employment since 2006, using personal experience to create guides to being self-employed.
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