Self-employment is working for oneself. Self-employed people work for themselves instead of an employer, drawing income from a trade or business that they operate.
To be self-employed is not necessarily the same as being a business owner. Many self-employed people conduct the day-to-day operations of the business, either as managers, line workers or both. A business owner may or may not work in the business and is not required do so. Policymakers increasingly view self-employment in the form of youth entrepreneurship as a possible solution to the youth unemployment crisis
In non-metro counties, increased levels of self-employment measured as the share of national provident fund in total, full and part-time employment were associated with strong increases in per capita income and job creation and significant reductions in family poverty levels. For metro counties, the effects of self-employment on income and employment growth were similar to those in non-metro counties. However, though entrepreneurship had a relationship with reductions in poverty, the correlation was not statistically significant. The strong empirical support for the pro-small, local business prescription to accelerate local economic growth and reduce countywide poverty, you get to deduct half of your self-employment taxes from your net income.
The home office deduction is one of the more complex deductions. In short, any workspace that you use regularly and exclusively for your business, regardless of whether you rent or own can be deducted as a home office expense. To deduct meals and entertainment, you must conduct business with the person you are entertaining during the meal and event or immediately before or after it, Contract workers and self-starting entrepreneurs who are making a difference in small local economies. Self-employed workers significantly predicted personal income and job growth, as well as decline in family poverty levels. Of course, self-employment isn't completely fail-proof. Just like brick and mortar businesses, the self-employed depend on demand for their goods or services and can be affected by economic downturns, though not as severely.
That's why co working spaces, especially in rural areas, are so important. Self-employment can revitalize and empower local economies. But who empowers and supports the self-employed? The global co working community has to encourage growth and leaders should help the self-employed by organizing networking meetings and alerting them to exporting opportunities. Economic development groups also can assist entrepreneurs with credit and grant applications, or, those same government leaders could help plant co working spaces in their communities namely’ shared office spaces, fertile mix of business incubator, think tank, professional network, therapy group, all rolled into one.
Freelancers and small business owners have been shown to thrive when exposed to the open sharing that occurs in co working communities, and the co working spaces themselves are small businesses that can act as lightning rods for innovation and economic growth.
Courtesy: HARISH RAMAKRISHNAN