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Glossary / Lexicon

What is self-employment?

08/31/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Self-employment refers to the condition or occupation of a person running their own business, firm, or business activity rather than working as an employee for someone else. Self-employed people are often referred to as entrepreneurs, self-employed or freelancers, depending on the type and scope of their work.

Self-employment offers some benefits, such as the ability to control one's working hours and patterns, greater control over business decisions, and potentially greater financial rewards. However, there are also risks associated with self-employment, such as income uncertainty, responsibility for business decisions, possible longer working hours and managing various aspects of the business.

The forms of self-employment can be varied, from sole proprietorships to freelancers to small business owners and owners of larger companies. Self-employment often requires entrepreneurial skills such as planning, organization, financial management, marketing and customer care.

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