The theoretical review of self-employed status – forming, maintaining and completing

Abstract

The uncertainty within the business environment makes both companies and individuals reconsider traditional employment practices. More and more employees are choosing to manage their professional careers on their own. In UK the number of self –employed has increased from 7% during years 2008-2011, reaching the amount of 14% of total labour force. The research in USA shows that number of self-employed may reach 40% of total labour force in the year 2020. Moreover research show that self-employed have higher job satisfaction, which leads to assumption that self-employment is more efficient than traditional forms of employment.

This conceptual paper aims to examine the theoretical aspects of self-employed status – what does it mean – are these people to be considered workforce or entrepreneurs? How and why people do become self-employed? What happens further with their professional careers? What are the risks and benefits of being self-employed? And what are the forms of entrepreneurship applied by the self-employed?

To answer the questions, the Author has reviewed theoretical papers on self-employed, and currently available statistical data on the well-being of being self-employed.

The paper contributes to developing propositions on the forming of self–employed status, maintaining it and taking the decision to discontinue self-employment by returning back to the organization or establishing own business. Also it gives an insight for companies to better master the work relationship they have with self-employed workers.