Self-Employment Part 2

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You have learnt how you can choose a career for yourself involving paid employment. When you accept an employment, you have to undertake work that is assigned to you by your employer and you get a fixed amount as your salary or wage. But instead of seeking a job, you may do something on your own to earn your living. You may run a bookshop, medical store, or tailoring shop, etc. If an individual engages in any economic activity and manages it on his own, it is known as self-employment.

Difference between Self-Employment and Wage Employment

Table of Difference between Self-Employment and Wage Employment
Title: Table of Difference Between Self-Employment and Wage Employment

Basis

Self-employment

Wage employment

Nature

Engage in activities on one’s own.

Engage in activities assigned by the employer.

Status or position

The position of the person is that of owner and may be that of an employer.

The position of the person is that of an employee.

Income or earning

Income or earning is not fixed. It depends on the ability of the owner.

Income of the employed person is fixed and may be increased, if the employee so decides.

Work involved

Work involved is aimed at earning more and increasing the volume of business. The nature of work cannot be decided in advance and may vary

The work to be performed by the employee is specific and per-decide

Risk bearing

There is always risk of loss sometime and earnings may decline at times

There is no risk of reduced income so long as the employee continues to work.

Freedom of work

The owner is free to decide how to run the business depending on the available opportunities.

The employee has to work according to the terms and condition of employment.

Possible Areas of Self-Employment

Having read about the characteristics of self-employment, you may like to know about the areas in which self-employment is possible. In the process of career planning you may consider the following areas for self-employment opportunity.

Image of Possible areas of self employment

Image of Possible Areas of Self Employment

Image of Possible areas of self employment

Small Scale Retail Business

Single owners can easily start and manage small business units profitably with the help of one or two assistants. It can be a grocery store, stationery shop, or a cloth store, etc.

Providing Services Based on Individual Skills

Services which can be rendered to customers by individuals on the basis of specialized skill can also be taken up by way of self-employment. For example, repairing bicycles and scooters, watches and clocks, tailoring, hairdressing, etc. can be undertaken as individualized services to customers.

Occupations Based on Professional Qualifications

Activities which require professional training and experience are known as self-employment. Thus, for example, practicing Doctors, Lawyers, Chartered Accountants, Pharmacists, Architects, etc. are self-employed on the basis of their specialized training and skills. They have small establishments like a clinic, office space, chamber, etc. and offer services to clients with the help of one or two assistants.

Farming on a Small Scale

Opportunities are also there for self-employment in small scale farming activities like dairy, poultry, fishery, horticulture, Seri-culture, etc.

Village and Cottage Industries

Activities like hand spinning and weaving, hand knitting, stitching garments, etc. can be taken up as self-employment; these may be based on traditional inherited skills. vi. Arts and crafts: Those who have been trained in certain craftsmanship or art can be self-employed in such occupations as those of goldsmiths, blacksmiths, carpentry, etc.

Preference for Self- Employment over Wage- Employment

Self-employment is often regarded better than wage-employment for the following reasons:

  • Self-employment offers opportunities for using one’s own talents for one’s benefit. You can use your ability and time in the most profitable manner through self-employment.

  • Self-employment is possible even without large resources of capital and other facilities. For example, a replay-cum-service shop can be started with limited amount of capital.

  • In self-employment, the person learns many things ‘on the job’ because he has to take all the decisions regarding his business activities for his own benefit.

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