2. A self-employed individual does not work for
a specific employer who pays them a
consistent salary or wage. Self-employed
individuals, or independent contractors, earn
income by contracting with a trade or
business directly. In most cases, the employer
will not withhold taxes, so, this becomes the
responsibility of the self-employed individual
3. self-employed include independent
contractors, sole proprietors of businesses,
and individuals engaged in partnerships.
Those who are self-employed work for
themselves and contract directly with clients.
The self-employed do not receive any
employee benefits such as health plans.
The self-employed are not subject to tax
withholding and are responsible for paying
their taxes.
4. Self-employment is not the same as business
ownership. For example, a business owner has an
ownership stake but may not be involved in the
day-to-day operations of the company. In contrast,
a person who is self-employed both owns the
business, but they are also the primary or sole
operator. The taxation rules that apply to those
who are self-employed differ from the employee or
a business owner.
5. 1. Independent contractors: are
businesses or individuals hired to do specific
jobs. They receive payment only for the jobs that
they do. Because they are not considered
employees, they do not receive benefits or
workers' compensation. Additionally, equal
opportunity laws do not apply to them, and their
clients do not withhold taxes from their
payments for work performed. Examples of
independent contractors include doctors,
journalists, freelance workers, lawyers, and
accountants who are in business for themselves
6. 2. Sole proprietors: are the only owners
of unincorporated businesses while
partnerships involve two or more self-
employed people who form a business
together. Independent contractors, sole
proprietors, and partnerships often hire a
small number of employees to help them with
their work.
7. Self-employment Entrepreneurship
you have people working for you. you have people working with you.
As a self-employed person, you hire people
to work for you. The vision and goal is set by
you and it solely depends on you.
As an entrepreneur, you have people working
with you. You and your team work together
on setting and achieving the company goals.
Self-employed people are the face of their
business. If their absenteeism is constant,
their business will significantly go down.
This is not the case for an entrepreneur. The
business will keep running even if the boss is
absent because the employees understand
the vision of the business.
Self-employment does not have many
requirements and restrictions.
Entrepreneurs must deal with a wide range of
legal requirements including business
registration, insurance requirements and
filing taxes.
8. Self-employment Entrepreneurship
For self-employed, if the business
owner retires or passes away, the
business will also die.
if the business owner passes away,
the business will still continue. It is
not dependent on him to exist.
Self-employed is reserved in his
thinking. He does not want to go
big. He is just concerned about
paying off bills.
Entrepreneurs are open minded.
They are global thinkers. They
understand the advantages of
catering to people’s needs on a
large scale.
A self-employed person is not a
risk taker. He fears change.
An entrepreneur is a risk taker. He
has the zest to explore new
opportunities and believes that he
can manage and control risk. They
understand that with great risk
comes great returns
A self-employed person tries to do
everything on his own because he
thinks he is the best and nobody is
better than him.
An entrepreneur on the other hand
understands and accepts that he
can’t everything on his own. He
delegates the right work for the
right people so that there is
efficiency in the work done.
