Being self-employed often comes with the allure of freedom, flexibility, and the chance to pursue one’s passions. However, while the benefits may seem plentiful, the reality is often far more complex, particularly for the partners of those who are self-employed. According to recent research by Hassan Kalantari Daronkola from Swinburne University of Technology, having a self-employed partner could significantly lower life satisfaction for those who prioritize family, leisure, and personal well-being.
The Hidden Costs of Self-Employment
The self-employed make up a significant portion of Australia’s workforce, accounting for just under 16% in 2022. Many of these individuals are driven into entrepreneurship not by choice but by necessity, especially during economic downturns when job opportunities become scarce. This phenomenon, known as the “unemployment push” or “refugee effect,” can provide an essential source of income but also brings substantial challenges, particularly for their partners and families.
Kalantari’s study reveals that spouses of self-employed individuals often experience lower life satisfaction. This decline in happiness can be attributed to several factors, including financial uncertainty, long and irregular working hours, and difficulty in disconnecting from work, all of which can create significant stress and strain on personal relationships.
The Impact on Family and Personal Well-Being
The research, which analyzed data from more than 80,000 respondents across 60 countries, found that the negative effects are especially pronounced for those who value family time, leisure, and a balanced work-life routine. The demands of self-employment often mean less time for family and shared activities, which can result in increased stress and lower life satisfaction for partners.
The situation becomes even more challenging when both partners are self-employed. Managing responsibilities like childcare and household tasks while also running a business can be overwhelming, making it nearly impossible to find time to relax and enjoy each other’s company.
Why Support for Self-Employed Families Is Essential
Self-employed individuals and their families play a crucial role in Australia’s economy, but the pressures they face should not be ignored. To support these families better, it is essential to provide resources such as mental health services to cope with the stress of self-employment, financial planning advice to help manage income fluctuations and new tax breaks tailored to solo entrepreneurs.
Expanding access to affordable childcare would also alleviate some of the burdens, allowing self-employed parents more flexibility in balancing work and home responsibilities.
The Path Forward: Balancing Freedom and Well-Being
The advantages of self-employment, such as autonomy and creative freedom, should not come at the cost of personal well-being or the happiness of those closest to us. By creating more robust support systems for self-employed families, we can help ensure that the pursuit of entrepreneurial dreams does not undermine the quality of life for partners and loved ones.
This article is based on the work of Hassan Kalantari Daronkola, Senior Lecturer at Swinburne University of Technology, originally published in The Conversation. You can read the original article here.
