Business development · 26 January 2017

Fewer hours and more money Is self-employment paying off?

self-employment trade-off
The average self-employed worker works 21 hours a week ten hours less than the average full-time employee
Dropping the traditional nine to five could result in more money and a better standard of living, as a new study reveals a line of surprising benefits to self-employment.

Bookkeeping software company Intuit Quickbooks surveyed over 5, 000 self-employed workers in Britain, finding average earnings of 5, 000 more a year than the typical UK salary of 26, 500 for regular employment

Survey respondents even managed to achieve higher pay working ten hours less each week than those in full-time employment.

Predictably, higher average pay and fewer working hours had a positive impact on the personal lives of self-employed workers. Two-thirds of respondents said that life satisfaction? had increased since making the shift to self-employment.

However, it was confirmed in the research that freelancers and the self-employed recognised the inevitable risks that came with the benefits of working for yourself.

Almost six in ten stated that the biggest challenge to self-employment was managing an unpredictable income, while almost half of respondents cited uncertainty over future stability as a major worry.

The research found that it was over-65s that had gained the most from self-employment, with mean annual earnings of between 40, 000 and 70, 000 more than the average self-employed worker.

Commenting on the research, Dominic Allon, managing director of Intuit Europe, said that people were making the switch to self-employment in droves.

Allon pointed out that technological developments had made it easier than ever for somebody to choose self-employment, and said it was a trend that is likely to increase.


 
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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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