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Self Employed are the backbone of the economy

Says leading self employment accountancy, Easy Accountancy

Says leading self employment accountancy, Easy Accountancy

With a 0.8% growth in the first quarter of this year[1] and the International Monetary Fund predicting a growth of 2.9% in 2014 there is hope that the double dip days of the recession are behind us.  Combined with the fact that there were 367,000 more self employed in the last 4 years[2] and a massive 60% increase in self-employment workers between 2011-2012 then you wouldn’t be wrong to assume that those who work for themselves are helping drive the economy forward.

Lovely Kohli, Senior Accountant from Easy Accountancy, who provide accountancy services for hundreds of self employed workers in the UK gives us her opinion on why self employment really is a good thing for the economy.

Self Employment turns the wheels of the economy

The facts speak for themselves.

4.5 million people are now self employed, accounting for 15% of the UK workforce[3].  The economy is on an upward turn and self employment is at a high. Although self employment cannot take all the credit, there is no doubt it is a contributing factor.

Self Employment bridges a gap in the workforce

Without the overheads of a permanent member of staff, self employed individuals often bridge a gap in a workforce at busy times, freeing up permanent members of staff to concentrate on the day to day running of the business.  This often allows companies to take on extra work, helping them grow their business, which in turn helps increase the GDP of a country, and at a macro level oils the wheels of the economy.

Self Employment can bring new skills to a business

Working with those who are self employed is not only a way of temporarily flexing the workforce when times are busy, but can also help a business by completing tasks that they don’t have the skills or time to undertake internally. For example, a web designer could build a website that helps to generate more business, a freelance marketer can create more leads and a sales consultant could bring in new contacts and projects. 

Self Employment can encourage people into the workforce

Many people who are self employed do so out of choice, not because they are unable to find work elsewhere. In a survey by our parent company SJD Accountancy, 74% of those interviewed said that they consciously chose to be self employed as a career and 79% said that they found being self employed rather than an employee more satisfying.

A high proportion who work for themselves like the flexibility of self employment. They like to pick their projects, have the ability to take time out of work if and when they want and the variety working for themselves brings. 

From an economic point of view, this flexibility means more people are able to work the way they want to, bringing them back into the workforce and adding to the UK economy via their direct contributions.

Many who are self employed decide to follow the limited company route due to the tax advantages of doing so, which for some, could further increase their take home pay. However, before making the move to limited it is always recommended to consult with an accountant. 

Those working for themselves might see their business as a small concern yet collectively they are a larger cog that contributes significantly to the UK’s economic future.

[1] Source: Office for National Statistics
[2] Source: Office for National Statistics
[3] Source: Office for National Statistics