The entrepreneurial spirit in Northern Ireland is thriving, with a growing number of individuals embracing self-employment. Driven by autonomy, flexibility, and passion, these individuals form a crucial part of the local economy.
However, AXA’s report - "The Allure and Anxiety of Self-Employment: A Balancing Act" - reveals a concerning paradox: while many self-employed individuals report they are thriving, they also face significant hurdles, primarily financial instability, and a perceived lack of support.
Financial instability
The AXA report highlights the financial tightrope walked by many self-employed individuals in Northern Ireland. 36% of respondents cited financial instability as their biggest concern, driven by the unpredictable nature of income and the lack of traditional safety nets.
This precarious financial situation can negatively impact mental health, relationships, and overall well-being. This anxiety is further compounded by rising costs, identified by 47% of respondents as their most significant threat in the coming year. Despite a sense of optimism, with 89% reporting their businesses as thriving, doing well, or stable, this underlying financial vulnerability remains a significant concern.
Bridging the gap
Beyond the immediate financial pressures, a lack of understanding about the self-employed sector further exacerbates the challenges. The AXA report exposes a stark disconnect between public perception and reality. While nearly 90% of businesses in Northern Ireland are classified as small, the public estimates this figure to be much lower, around 38%.
This lack of awareness underscores the need for greater education about the true scale and impact of these businesses, particularly the self-employed who drive so many of them. John Caird, Commercial Director at AXA, emphasises the importance of addressing this perception gap, stating that closing this gap is "essential for fostering a more supportive environment for Northern Ireland's entrepreneurs."
Building a stronger ecosystem
To address these challenges, the AXA report outlines actions for key stakeholders:
For the self-employed
Being your own boss in Northern Ireland takes more than just passion - it takes savvy. Invest in ongoing training to keep your skills sharp and explore online platforms to broaden your reach. Networking is key: connect with fellow entrepreneurs through online and offline business groups for support and shared learning.
Remember the human touch, even in the digital age, as AXA’s John Caird reminds us: "Every screen has a human behind it." Solid financial management is crucial; boost your financial literacy and explore innovative solutions like the circular economy. Equip yourself with the knowledge and connections to build a thriving business.
For Northern Ireland consumers:
Northern Ireland's self-employed are a vital economic engine, and they need the right support to thrive. Invest in financial education from a young age to empower future generations of entrepreneurs. Make it easier for self-employed individuals to access existing government supports through a centralised awareness campaign.
Recognise the unique pressures of self-employment and prioritise access to mental health resources. Finally, streamline regulations and cut red tape to free up time and resources, allowing these businesses to focus on innovation and growth. By creating a supportive environment, policymakers can unlock the full potential of Northern Ireland's self-employed.
The AXA report provides a crucial roadmap for change. By working together, we can empower Northern Ireland's self-employed to not just survive, but truly thrive, contributing to a stronger and more vibrant economy.
Find out more about AXA’s ‘Being self-employed shouldn’t be a risk’ campaign and download the full report.