In this article published by Business First Steps, the pros and cons of being your own boss are discussed. While self-employment gives you some freedom, it has several hurdles that entrepreneurs must face especially in the first few years of running their own business. One of these hurdles is adapting to the current economic situation.
2017 brought a lot of economic changes to the UK. Brexit, for one, has continued to have a ripple effect on merchants in the UK and their business partners. Despite the fact that the UK won’t know the full impact of Brexit until 2019, some businesses are already feeling the uncertainty that surrounds the local economy.
Several companies in the UK have already closed down not only because of uncertainty brought about by Brexit but also because of the lack of business opportunities. If you search for FXCM’s reading on the Goods Trade Balance for November 2016 it shows a trade deficit, which means that the amount of UK imports exceeds the value of its exports. This deficit shows the weak outflow of domestic currency to foreign markets, which led to many companies closing down.
2018 could be a tough year for British businesses. Below are three factors that help decide whether 2018 is the right year to go self-employed.
The current employment levels in the UK are a good reason to consider self-employment. Back in November 2017, UK employment fell for the first time in the aftermath of the Brexit Vote. One economic expert stated: “UK employers are finally having to respond to much tighter labour market conditions”. In contrast, the European market is experiencing higher employment rates which could be attractive for those who are self-employed.
With high unemployment rates, it seems that now is the right time to go self-employed in 2018. Self-employment is quickly becoming a necessity instead of a choice.
UK’s growth forecast was cut
Before 2016, it was predicted that the UK would have a growth rate of 1.8%. However, the European Commission has since slashed its UK GDP forecast to just 1.3% in 2018, and 1.1% in 2019.
A slow growth rate would lead to a weak pay growth in the coming years. This can be frustrating as an employee, especially when you’re working hard for your career and to attain your personal goals. Being self-employed may remedy this, as you will be in control of your own growth and career path in a volatile economy.
Global business optimism is high
Global business optimism is at a record high, according to a survey presented by The Telegraph. In fact, the Eurozone is expected to accelerate in 2018 due to Britain’s economic lag. This means that there will be a lot of opportunities for business and growth in other countries. “Strike while the iron is hot” holds true for this situation, and sometimes it means looking in other territories to find areas of opportunities to get work, especially with the recent Brexit uncertainty looming large.