Have you ever considered being self-employed? Some of the oft-touted advantages make it seem to be a dream come true. You gain more control over your time, complete freedom to make creative and business decisions, and a higher work-life balance.
For many self-employed entrepreneurs, nevertheless, this promise seems to be a cruel mirage. Financial uncertainty, unexpected obstacles, and having to work alone late at night could make the fact seem very different.
And while they could be running a solo business, entrepreneurs can’t exist of their little bubbles. The pressures they face can put a real strain on all of their relationships.
Or perhaps never as much as within the case of a spouse who’s an eyewitness to all of the ups and downs.
My last tests wanted to explore what it’s like when a business partner becomes a spouse.
The results were disturbing, but hardly surprising – it found that having a self-employed partner can significantly lower life satisfaction, especially in case your priorities are family, leisure and work.
An essential contribution
Self-employment makes up a small but significant proportion of Australia’s total workforce – slightly below 16% in 2022. They also make a significant contribution to the economy.
It is significant to note that self-employment isn’t at all times a alternative. During difficult economic times, the share of self-employment often increases as individuals are “pushed” into starting their very own businesses out of necessity.
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This phenomenon, also often known as “unemployment push” Or “the refugee effect”, suggests that individuals often determine to pursue entrepreneurship once they have limited job opportunities or when the labor market is weak.
This type of necessity-driven entrepreneurship can provide entrepreneurs with a critical source of income. It may also generate latest job opportunities for others if these latest businesses are successful enough to start hiring.
But this isn’t easy and will be a serious challenge for his or her spouses and other close members of the family. They mustn’t be taken frivolously.
Partners also bear the prices
My test data covering over 80,000 respondents and 60 countries were examined, from probably the most recent Research on world valueswhich takes place every five years.
It has been found that spouses of self-employed people tend to have lower life satisfaction.
A lot of aspects can contribute to this state of affairs, from high levels of stress related to financial uncertainty to difficulty breaking away from work, which might put a strain on personal relationships.
My research also found that the perceived importance of family, leisure, and work reinforced this effect. The more essential these facets were to one’s spouse, the lower the likelihood of life satisfaction.
This is basically in step with what you would possibly expect. The demands and irregular hours of self-employment can lead to less time for family, less time for shared recreational activities, and increased stress.
Moreover, ambitious career-oriented individuals may find it difficult to deal with the extra responsibilities and stress that their partner’s self-employment brings, which translates into lower life satisfaction.
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The picture was even worse when each partners were self-employed – life satisfaction was significantly lower. This reflects some unique challenges which are different from other households.
Having just one partner in your individual business can really mess up your work-life balance. Now imagine each of you! It can quickly change into incredibly difficult to manage responsibilities like childcare, let alone find time to be together.
In Australia, where work-life balance is a deeply valued cultural norm, the stress of a spouse being self-employed will be particularly burdensome.
What must be done?
Self-employed people and their partners make a invaluable contribution to Australia, so it will be significant that we take care of them.
Our findings indicate that we want to create a higher support system for families where one or each partners are self-employed, especially in times of economic crisis.
This can include mental health support to help cope with the stress of being self-employed, in addition to financial planning services to help deal with the ups and downs.
Policies that directly address the financial insecurity of self-employment could have a disproportionate impact. These could include latest tax breaks specifically for self-employed entrepreneurs.
Expanding access to inexpensive childcare may also make it easier for each partners to balance work and residential responsibilities, especially when budgets are tight.
The advantages of self-employment shouldn’t come at the associated fee of the well-being of those closest to you. By creating higher support systems for self-employed families, we will slowly fix this equation.