Difference between Self Employment and Salaried Employment

Self employment

Self employment is a situation in which a person starts and operates a business enterprise. Since entrepreneurial skills drive people into self employment, entrepreneurship training is therefore expected to prepare trainees for starting and operating their enterprises effectively.

Self employment is a situation in which individuals create and run/operate their own income generating activities.

Salaried employment

Salaried employment is a process in which an individual is hired for a period of time, which may range from a few months to a few years, and is paid a given amount of money as salary or wages for the work done.

The merits and demerits of salaried employment are varied and largely depend on a person’s qualification, experience and specialisation area. The merits and demerits are also determined by the magnitude of growth, investment ability, profit and government support of a given organisation.

Defined working hours, guaranteed income, delegation of duties and specialisation are some of the main advantages of being in salaried employment. However, salaried employment is affected largely by organisational elements such as change of management, especially where new management introduces new policies, rules, conditions of employment and other statutory requirements to the organisation. Job security is not guaranteed and personal satisfaction and motivation is not wholly experienced.