SELF-EMPLOYMENT ENTERPRISE OVERVIEW
DEFINITION
Self-employment or self-employment enterprise (SEE) means the individual is earning income directly from the individual's own business, trade, or profession rather than from a specified salary or wages from an employer. A self-employment enterprise must:
- Comply with all relevant state, federal and local laws and regulations.
- Involve sole ownership and management of the business by the DRS customer. An exception requires written pre-approval from the DRS Commissioner.
- Enable the individual to meet ongoing living and business expenses.
- Be intended to become a major source of income for the individual.
PURPOSE
Self-employment is an option that may be considered for any DRS customer when it is determined through the IPE (Employment Plan) process that this is an appropriate method for that individual to reach the established employment goal. Self-employment must reflect the individual's career interests and informed choice to the extent that those factors are consistent with the unique strengths, resources, priorities, concerns, abilities, and capabilities of the individual. The self-employment enterprise option is based on the results of the eligibility determination assessment and any additional needs assessments required to develop the Employment Plan.
The decision to use DRS funds for self-employment is subject to the provisions of DRS policies, including, but not limited to purchasing and customer financial participation. The use of DRS funds to support a business start-up will be based on a variety of factors, including but not being limited to the viability of the business plan, potential for other financial sources, counselor judgement and SEE Committee recommendations.
WHY CONSIDER SELF-EMPLOYMENT ENTERPRISE?
Many people with disabilities have a desire to be self-employed. This desire may be met through careful planning. Self-employment can be an appropriate means to achieving a vocational goal. Some reasons to consider a SEE are:
- Small businesses have a good success rate.
- Eighty percent of small businesses are still operating after 8 years.
- Previously published high failure rates were in error.
- Individuals with a work disability tend to be self-employed at higher rates than people without a work disability.
- Self-employment is often a good choice for persons with physical barriers to commuting to a traditional job, or those with impaired work tolerance who need to set their own work schedule or pace.
- Self-employment may also be the best employment option available for people with disabilities who live in rural areas where employers and jobs are scarce. In order to work, many people in rural areas have to create a job for themselves.
- Self-employment and home-based businesses are growing trends.
- Telecommunications and the trend by businesses of outsourcing for services have contributed to the growing popularity of self-employment.
BENEFITS AND DISADVANTAGES
The concept of a self-employment should be considered early in the rehabilitation process. The positive and negative aspects should be discussed when there is an expressed interest.
Benefits:
- Enjoyable work
- Independence - the ability to control the work setting and schedule
- Employment where the possibility of employment is limited
- Being the boss
- Contact with customers and others
- Making a living at something enjoyable
- A sense of achievement and personal satisfaction
- Control over job security
- Having the ability to make business decisions
- Feeling part of the community
Disadvantages:
- Working long hours
- Strain on family
- The customer is the boss
- Owner has total responsibility
- The possibility of business failure
- Limited cash flow during start up phase
- Fluctuating income
- Possible aggravation of health problems
