Becoming self-employed is often glamorised as the ultimate freedom—a way to “be your own boss” and live on your own terms. But let’s be honest: the reality is far from a dream for most new entrepreneurs. Transitioning to self-employment comes with serious financial and economic pitfalls that society, financial institutions, and even the government aren’t fully supporting. Here’s a hard look at what aspiring entrepreneurs need to know.
The reality of income and funding instability: Why banks won’t take a chance on you
Self-employment sounds empowering, but the truth is, if you’re starting, the financial world is stacked against you. Fluctuating income and high initial capital requirements make it almost impossible to find consistent funding. Banks and investors often hesitate to fund early-stage entrepreneurs, especially if they don’t fit the traditional, well-connected profile. Good luck getting a loan if you don’t have a wealthy network or established credit.
Uncomfortable truth: Self-employed individuals are left to bear all the risk, while financial institutions keep their support primarily for high-growth start-ups and big businesses. Without access to capital, many potentially great ideas never get off the ground. Isn’t it time for banks to recognise the value in small, everyday entrepreneurs?
Losing employment benefits: Why are we penalising risk-takers?
Let’s talk about benefits. Health insurance, retirement savings, paid leave—these perks vanish when you enter self-employment. This is especially alarming given that self-employed individuals are the backbone of economic growth, driving innovation and creating jobs. So, why aren’t there better protections and resources for them?
Hard question: Why is society structured to penalise people for leaping self-employment? Shouldn’t self-employed people have access to affordable health insurance or subsidised retirement plans? It’s time for policymakers to recognise that entrepreneurs deserve more than just “freedom”–they need financial security, too.
Economic and external pressures: Why are entrepreneurs always at the mercy of the economy?
In an unstable economic climate, self-employed people are left high and dry. Rising inflation, new regulations, and even global supply chain issues can disrupt a small business overnight. Unlike large corporations, self-employed individuals don’t have the luxury of government bailouts or subsidies.
Controversial point: Governments quickly bail out large corporations when the economy falters, but where is the safety net for entrepreneurs? Where are the policies to support self-employed individuals when the economy takes a downturn? Maybe it’s time to hold policymakers accountable for creating a fairer environment for small business owners and solo entrepreneurs.
Final thoughts
It’s time to rethink the narrative around self-employment. The idea of being “your own boss” is powerful, but right now, society and the financial system do very little to support entrepreneurs through the hardest parts of the journey. Self-employed individuals carry the weight of their businesses, often with no safety net and little understanding from the public about the risks they face. If we truly want to support innovation and economic growth, we must change how we view and support self-employment.
Let’s challenge the status quo. Why should entrepreneurship be a lonely, high-risk path when it could be a thriving, supported ecosystem? Until we demand more from our financial institutions and policymakers, self-employment will remain an uphill battle—one that’s available only to those who can afford the risks.
Introducing the IAE Toolkit: Your roadmap to entrepreneurial success
The IAE Toolkit is a structured series of three-level workshops designed to equip aspiring entrepreneurs with the essential skills to succeed in self-employment. Each level focuses on a core competency: Mindfit Mindset, Mastering Marketing, and Money Management.
- Mindfit Mindset: A growth-oriented approach that fuels resilience and adaptability, empowering entrepreneurs to overcome challenges and stay motivated.
- Mastering Marketing: Proven strategies for connecting with customers, building a standout brand, and networking to open doors for business growth.
- Money Management: Fundamental financial principles for sustainable growth, covering budgeting, investment, and financial risk management.
Ready to take the leap?
The journey to self-employment doesn’t have to be an uphill battle. With the IAE Toolkit, you’re not just jumping into the unknown—you’re equipping yourself with the skills, mindset, and strategies needed to make self-employment work for you. Embrace the path less taken, but do it with the right tools. Entrepreneurship’s financial, emotional, and economic challenges are real, but with IAE’s support, they’re surmountable.
Learn more about membership, access the Toolkit, and start your journey to successful self-employment here.
It’s time to challenge the narrative around self-employment and demand a better support system for entrepreneurs. Until then, the IAE Toolkit is here to bridge the gap—empowering you to build a future of true independence.