Fear of failure is business barrier

Self-employment doesn’t work well for everyone

FEWER workers are choosing to go out on their own and run their own business, instead opting to ditch the hassle or gain more experience by working for someone else.

While publicity about startups and young tycoons earning six-figure salaries may paint a picture of an increasingly entrepreneurial workforce, the Federal Government’s Australian Jobs 2019 report actually finds just 17 per cent of workers are now self-employed, down from 20 per cent 20 years ago.

“Almost half of Australians perceive that there are good opportunities to start a business, while more than half believe they possess the skills to do so,” it states.

“Fear of failure is one of the main reasons why many people do not start a new business.”

Their fears may be warranted, as the report reveals only 1.3 million, or 62 per cent, of the 2.1 million firms in business in June, 2011, were still in business in June, 2015.

It also reveals the smaller the firm, the more likely it was to fold within four years.

Sole operators with no employees had the lowest survival rate, with only 56 per cent still operating in 2015, while businesses employing more than

‘‘ I THINK PEOPLE ARE MORE AWARE OF THE PITFALLS OF HAVING YOUR OWN BUSINESS

MICHELLE BENTLEY

200 workers had an 83 per cent survival rate for the same period.

Hender Careers general manager Michelle Bentley says there are many reasons why people return to working for someone else or do not follow through with starting their own business.

The career transition consultant says some workers miss being part of a team, while others do not have the skills to wear the many hats required

before they can hire someone to do those tasks, such as marketing or sales nous.

“I think people are more aware of the pitfalls of having your own business,” she says.

“I think the security and assurity that can be gained by being in employment – salary,

holidays, sick leave, personal leave, all these extra things, superannuation – is quite an attraction for people.

“Unless people really have a real determination (to run their own business), many of them do fail.”

Ms Bentley says the desire in

today’s workers to be their own boss has not left, but they are well-researched, so may do their due diligence before starting a business and decide against it.

Others often pick up consultancy work when they are between jobs or find the inconsistent

income does not suit their lifestyle needs.

Many workers find it can be lonely, with no one to collaborate, solve problems or engage with, or miss being a part of “something that’s bigger than themselves”, Ms Bentley says.