Self-employment reaches a record high in the UK

23,000 new self-employed workers registered in the UK during the second quarter of 2017, taking the total number to 4,814,465 – equivalent to 1 in 7 workers, close to one million more than in 2008 and a record high in the UK.

While men account for 67% of all self-employed people, 300,000 women have registered for the first time since Q2 2013, an increase of 24%, according to analysis by small firm insurance specialist, Direct Line for Business.

While the self-employed are well represented in many sectors, the construction industry has the highest number, with 973,000 accounting for more than 20% of all sole traders and 42% of the construction industry workforce. Construction is followed by professional services (577,000, 12% of all sole traders and 25% of the sector workforce) and wholesale, retail, and repair of motor vehicles (407,000, 8% of all sole traders and 10% of the sector workforce).

27% of sole traders believed there were more opportunities for freelancers and contractors, although 22% thought the competition was actually getting stronger as more people took the sole trader route.

32% agreed new technology has made self-employment easier and when asked what they thought was the greatest benefit of being self-employed, 45% agreed that it was having full control over working hours and holidays while 20% thought it was being the sole recipient of profits.

Not having to manage employees, lower overheads and being sole decision maker were also rated major benefits.

51% stated that unsteady income was the primary drawback, while financial liabilities (12%), not having enough time for new business (10%), not having anyone to discuss ideas or opportunities with (9%) and not having enough support to carry out work (6%) were also identified as drawbacks.

As a leading credit management company since 1914, CPA has had extensive experience of providing new sole traders with the cost and time efficient credit management services they need to ensure their growth is not choked off by credit and cash flow problems.