More than two-thirds of self-employed individuals have no intention of returning to traditional employment and in fact intend to grow their business, according to a recent report.
The report, titled “Self-Employed Professionals and Small Business Owners in America: The Rewards and Challenges of Career Independence,” found that self-employment comes with its own list of pros and cons when compared with traditional employment; most agree it offers more flexibility to find time for family and other commitments, for example, but many have no retirement plans even at older ages.
The survey, composed by accounting software firm FreshBooks, found small business in North America are largely unprepared for a variety of potentially disastrous scenarios like not getting a large invoice paid, being sued, or being struck with a disability that prevents them from running their business.
“In the next five years, self-employed professionals will make up nearly half of the US workforce, yet everything from health care to America’s tax code cater to larger businesses,” explains Mike McDerment, CEO of FreshBooks. “To better serve this market, it’s important to understand it.”
It’s fulfilling but also stressful, respondents agree. 46% say they should be managing their money better; 28% have already made financial mistakes; and 28% say managing business keeps them up at night.
“The study is the first of its kind, and sheds light on the motivations, mindsets and challenges of self-employed Americans,” says McDerment. “In sharing it, we hope it will inspire change that benefits this fragmented, but enormous group.”
52% say big banks aren’t designed to serve the needs of small business, while even more said when it comes to financing, they wish there were more alternatives to big banks. The rise of fintech startups will hopefully fill this void.