DIP – Self-employment Lim Sei cK

Transition from education to work After completed primary education  secondary education After completed secondary education  tertiary education After completed tertiary education? Work Employment

What are the reasons for working? - transition from education to work -Settle the bills? -Get a bigger house? -Satisfy wants and needs? -Be the breadwinner of the family?

ACTIVITY Work in a group of maximum 5 classmates and discuss the reason why do people work. Present your answers after 20 minutes of discussion.

Reasons for working Because you have to Work to provide for others Work because you love what you do Work to fund your true passions

Work simply for the money Work to leave a legacy or for recognition and greatness Work primarily to share Work out of boredom Do not know why you work

What is Employment? Employment is an agreement An agreement between an employer and an employee For what? That the employee will provide certain services on the job

What is Employment? Where? In the employer's designated workplace Main reason? In return for compensation.

Employment Employment is a major concern of all types of industry. It is referred to as something provided by companies and demanded by people who need earnings. Employment is a relationship between two parties, usually based on a contract, one being the employer and the other being the employee.

Employer and Employee EMPLOYER A employer is one who hires an individual to work. The employer is usually considered the "boss“ EMPLOYEE An employee, is one who works for the employer. The employee is usually considered the "worker".

Another word for employment = labour Labour or employment is a major component in business production. To be employed, a person must possess the primary skills associated with the nature of the production. He or she must be able to contribute labor and expertise to the endeavor of the company.

Self-employment What is it? Do you think it is possible? Self-employment means working for yourself. The definition of self-employment is ‘starting and running a successful business or social enterprise’.

Self-employment A situation in which an individual works for himself or herself instead of working for an employer that pays a salary or a wage. Someone who is self employed is the owner of a business, an individual who earns a living by working for himself/herself and not as an employee of someone else

Who can be self-employed? Think of the experience or skills or something which you have previously done as a hobby. What are you good at? Many famous companies began this way as visionary men and women patented an invention, created a company or registered a brand.

Benefits of self-employment The benefits Freedom. Being your own boss. Earning more money (possibly becoming rich). Working fewer hours. Independence. Variety and choosing work you enjoy.

What about the risk? The risks Major responsibilities Lack of funds Insufficient experience No benefits provided Not having a regular income Having to arrange own sick pay and pension Having to work long hours

Forms of trading Three legal forms:- a sole trader. a partnership. a limited company. In addition to one of the above legal forms, self- employment can also involve one of the following trading practices:- a co-operative. a franchise.

Entrepreneurs An entrepreneur is someone who: A: Starts a large business? B: Manages a business? C: Invests in other people’s firms? D: Takes risk in return for possible rewards?

Entrepreneurs An entrepreneur is someone who: A: Starts a large business? B: Manages a business? C: Invests in other people’s firms? D: Takes risk in return for possible rewards.

Understanding business enterprise Identify and state the characteristics of the business enterprise  Micro  Small  Medium  Large  Differences: Number of employees, annual sales, ownership structure, size, etc.

Individual task Identify and state the characteristics of the business enterprise  Micro  Small  Medium  Large GROUP A & B DUE DATE: 6 th December 2014