Employment/Self Employment/Freelancing: What Works Best?

The covid-19 period in Kenya saw people lose jobs, businesses, and deals that were once before their livelihoods. It called for partial or complete adjustments to lifestyles and incoming generation avenues to weather the pandemic and stay afloat. Even though it’s leveled down to the normal business rhythms, the effects still linger, and the economic bite remains everywhere.

How, then, do you decide on an economically gainful scheme to make a living between employment and self-employment or freelancing? Can you mix two of these to nick an extra nickel? 

Let’s briefly look at the three forms of earning and highlight your path.

Employment /Self Employment /Freelancing

Employment

Advantages of being employed

Steady income: As an employee, you get regular income, which is only sometimes the case for self-employed individuals or freelancers who may face fluctuations in income.

Benefits: Employers often offer benefits such as health insurance, pension, and paid leave, which self-employed individuals or freelancers have to arrange and pay for themselves.

Job security: Employed individuals have more job security as they have a contract with their employer, which provides some job stability.

Skills development: Employees often have opportunities for training and development, which can help them to grow their skills and advance their careers.

Being Self-employed

Advantages of self-employment

Control: As a self-employed person, you can control your work and decide which projects to take on, how to price your services, and when and where to work. You get to keep all your profits, so the rewards are more proportionate to the work and ideas put in. 

The drive to grow to the best levels attainable as you are the vision bearer.

Flexibility: Self-employment can offer greater flexibility in scheduling and work-life balance, which can be particularly beneficial for those with demanding family or social responsibilities.

Tax benefits: Self-employed individuals can claim various tax deductions for their business expenses, lowering their taxable income.

Freelancing

Benefits of freelancing

Variety: Freelancers can work on various projects for different clients, which can be stimulating and help them develop a diverse skill set.

Autonomy: Freelancers have greater independence in their work as they are usually not tied to a particular company or manager.

Higher earning potential: Freelancers often charge higher rates than employed individuals or self-employed individuals who provide similar services.

Freelancing Landscape in Kenya

The freelancing landscape in Kenya has been growing steadily in recent years, with many Kenyans turning to freelance work to earn a living. Popular freelancing fields in Kenya include writing and editing, web and graphic design, software development, and data entry.

Informal Sector/Self-employment Landscape

The informal sector and self-employment are significant sources of employment in Kenya. Many Kenyans are engaged in small-scale businesses, such as street vending, exhibition shops, information technology service providers, catering and event organizing, mechanics, masons, carpentry, and tailoring. While the informal sector provides a means of livelihood for many Kenyans, its main challenge is the need for a predictable/consistent revenue stream and limited access to benefits offered by the formal sector.

Are you trying to get the best of both worlds by balancing employment and freelancing/side hustle?

It is possible to strike a balance between employment and freelancing on the side, although it can be challenging. Some strategies for managing a side hustle while employed include:

Prioritizing time management: Being intentional about how you spend your time can help you to balance your work and side hustle.

Starting small: Starting with a small side hustle and gradually building it up can help you to stay calm.

Communicating with your employer: It is important to be transparent about your side hustle and ensure it does not conflict with your employment obligations.

In summary, deciding on employment /self Employment /freelancing in Kenya depends on individual preferences and circumstances. Each option has advantages and challenges, and it is essential to consider them carefully before deciding.

Good fortune hunting to you!