Due to the current status of the economy, and that many companies are downsizing or outsourcing jobs, many people find themselves with the prospect of losing their jobs and having to take the decision of finding another job or starting their own business. Both life styles have many important and interesting differences.
When you work for yourself you do not have a boss pushing you all the time. You have the freedom to decide what is right for your business so you do not have to do things that you do not agree with. You become more creative, because you are allowed to think by yourself. You make your own hours, and decide how hard you want to work. Your career is not affected by the dishonesty, laziness, or bad intentions of others. Plus, there are quite a few tax breaks available to you, such as the cost of business equipment like computes and some personal expenses that can go to the business.
Although one of the main attractions of becoming self-employed is no longer having to work for somebody else, there are several disadvantages such as not being certain of having a regular income, because the income arrives in waves. Sometimes it is high tide, sometimes it is low tide, and that takes some time getting used to. You do not have benefits, so you have to arrange your own health insurance and pension. You do not have much time for vacations mainly because if you do not work you do not get income. You have a myriad of startup cost, and some fix expenses like the 15.3% Social Security and Medicare tax -- double what you pay as an employee . Although you do not have to deal with a bad tempered boss sometimes you have to deal with angry and demanding customers that will call you out off office hours, so you never seem to leave the work problems behind. Finally some studies say that many people who work at home lament being "lonely," because they do not have people around to share with.
On the other hand...