PA life
Roccabella
Treat Your Staff
Treat Your Staff

Stress and financial pressures of self-employment taking toll on families

Stress of self-employment is taking its toll on families

The financial stresses and pressures of self-employment are taking their toll on family life, according to the latest report from Scottish Widowsโ€™ think tank the Centre for the Modern Family. Findings of โ€˜Self-employment and the Familyโ€™ show that one in five relatives of a self-employed worker (20%) report increased stress levels in their household due to their career choice.

With the number of self-employed in the UK up by 133,000 in the last year (and now accounting for 15% of the total UK workforce), the impact it has on family life is a worrying trend, especially as the research suggests that for many, the decision to leave traditional employment is driven by a desire for a better work-life balance.

More than half (53%) of self-employed people left traditional jobs in search of greater control and flexibility in their working life; 53% wanted to be able to choose their own hours, and 17% needed to fit work around childcare responsibilities. For women especially, it appears self-employment provides an opportunity to fit working hours around childcare, with nearly half of self-employed mothers (46%) choosing self-employment for this reason, compared to just 7% of self-employed fathers.

Family life โ€“ but at a cost?
As a direct result of being their own boss, more than a third of self-employed people (35%) say they can spend more time with their family, a figure that rises to half (49%) amongst mothers.

However, nearly one in five people (19%) with a self-employed relative claim their family member has more financial worries since becoming their own boss, while 20% say this person is generally more stressed as a result of their career choice and one in 10 (11%) say their whole family is under more stress as a result. Whatโ€™s more, nearly one in five of those in a self-employed household (18%) say their family member is always on call for work.

Financial worries โ€“ a barrier for many
Despite the perceived benefits of self-employment, a significant proportion of the UKโ€™s workers are hesitating to take the plunge. Two fifths (42%) of the workforce claim they want to be their own boss, yet only 5% have plans to do so in the future. Instead, one in four (40%) say they prefer the financial security of being a permanent employee and 39% enjoy the benefits such as a pension, parental leave and sick pay โ€“ too much to become self-employed.

However, with more support, budding entrepreneurs say theyโ€™d have the confidence to strike out on their own; 27% say that better financial support from the Government would encourage them to become self-employed. For 50%, more practical support such as online forums, local entrepreneur networks and Government guidance would help overcome the barriers.

Anita Frew, Chair of the Centre for the Modern Family said: โ€œTo a growing number of people, self-employment offers a chance to structure a rewarding career around family life. However, our research suggests that the pressures and stresses of being their own boss may, for some, be too much for a family. With more and easier access to practical and financial support, individuals may feel better equipped to make their path in self-employment less stressful for themselves and their families, and bring them more of the benefits that attracted them to self-employment in the first place.โ€

Scottish Widows urges the Government to make self-employed pension contributions exempt from National Insurance and believes this would be a good step in the right direction.