An Alternative to Full-Time Employment: The Benefits of Running Your Own Business

Currently, one in five Poles seeking an alternative to traditional full-time employment opts to work for themselves. According to GUS (Central Statistical Office) data, nearly 19% of working Poles were self-employed in 2023, setting Poland apart in the EU, where this figure didn’t exceed 13%. What motivates Poles to start their own businesses? Check out the benefits of running a business and why it may be worth considering this option.

What Are the Alternatives to Full-Time Employment?

In a dynamic business environment, where employee expectations are also shifting significantly, traditional full-time employment is becoming less viable for both employers and employees.

For employers, maintaining highly qualified permanent positions often proves too expensive and inefficient. Meanwhile, today’s employees, especially the younger generation just entering the labor market, increasingly value flexibility and the ability to maintain a healthy work-life balance, rejecting the constraints of full-time work.

These factors have led to the growing popularity of alternative employment forms, such as freelancing and self-employment.

Freelancing

A freelancer is an independent professional who provides services to multiple companies at the same time. In Poland, freelancing is a steadily growing trend, with 62% of Polish companies now using freelance services.

Interestingly, according to a Useme report, 8 out of 10 freelancers had previously worked full-time, with the main motivations for switching being the desire for greater independence and flexibility in deciding their working hours, location, and method, as well as the potential for higher earnings.

Some Polish workers view freelancing as a way to supplement their full-time income. Freelancers working in this model typically don’t need to set up their own businesses but can invoice clients through intermediary platforms (like Useme) that allow them to issue invoices for completed services.

B2B Contracts – Self-Employment

By the end of 2023, 12% of working Poles were running their own businesses, most of which were sole proprietorships. GUS data from the same period shows that many people use self-employment as a secondary income source—231,000 Poles, primarily in the service sector, supplement their full-time income this way.

Advantages of Running a Business for Employees

Greater independence, no boss, the ability to be your own boss, and almost unlimited earning potential are some of the key aspects of owning a business. But the benefits of self-employment go beyond these.

Flexible Working Hours

One of the most valued aspects by people who leave full-time employment to work for themselves is flexible working hours and the ability to set their own schedules. While there is a need to meet client demands, running your own business offers much more freedom in this regard than working for someone else, leading to better well-being.

Freedom to Plan Your Day

Having your own business also provides more freedom in planning your day and organizing work. Entrepreneurs can adjust their schedules to suit their needs and preferences, which fosters greater efficiency, motivation, and job satisfaction.

Work-Life Balance

The importance of work-life balance for employee motivation and engagement is now widely recognized. Running your own business gives you complete control over choosing projects and clients, allowing you to focus on tasks that are most valuable to you while avoiding the heavy workload often seen in full-time jobs. This freedom makes it easier to balance professional and personal life.

Freedom to Make Decisions

Starting your own business gives you full control over managing it and making decisions about its direction and strategy. While full-time employment ties you closely to one employer, self-employment opens up opportunities to collaborate with multiple partners and serve various clients simultaneously, offering financial benefits.

Legal Advantages of Sole Proprietorship

Higher earnings are often the strongest argument for leaving full-time employment to start your own business. However, this decision also comes with several additional advantages. Here are a few of the key legal benefits.

Low Startup Costs

A major advantage for those considering starting a sole proprietorship is that the process is free of charge. Moreover, new entrepreneurs can apply for grants to cover essential equipment or office rental costs.

Company Registration Process

To register a sole proprietorship, the first step is obtaining an entry in CEIDG (the Central Register of Business Activity). This process can be completed online, making it simple and convenient. Additionally, business owners must provide a company name, business address, appropriate PKD codes (industry classifications), and tax form.

 Initial Costs and Tax Reliefs

New business owners are eligible for reduced ZUS (social security) contributions. The primary benefit is the “startup relief,” which exempts new entrepreneurs from paying social security contributions for the first six months of operation (they only pay health insurance). After six months, they can enjoy preferential ZUS contributions for 24 months.

From 2020, an additional tax relief option, **Mały ZUS Plus** (Small ZUS Plus), has been available for micro-enterprises generating relatively low revenues (up to PLN 120,000 annually).

The Benefits of Running a Sole Proprietorship in a Virtual Office

When transitioning from full-time employment to sole proprietorship, you also gain more flexibility not only in setting your hours and work schedule but also in choosing where to work. This issue, once problematic, has been effectively resolved by the rise of flexible solutions like virtual offices.

Professional Business Address

With a virtual office, entrepreneurs receive a professional business address, which they can use on business cards and marketing materials. Having a prestigious business address is important for building trust among clients and partners.

Mail and Call Handling

Virtual office services at Idea Place offer more than just a professional address. They also provide a full office service, including mail handling, so that business owners can focus on running their companies, knowing that important documents and messages are managed effectively.

How to Make the Final Decision?

Deciding to move from full-time employment to self-employment is not easy and requires careful consideration of various factors. It’s crucial to realistically assess your financial capabilities, plan your business strategy, and understand the specifics of your industry. Consulting experts such as tax advisors or lawyers can help you make an informed and responsible decision. Running your own business can be challenging but also offers a path to greater independence, higher earnings, and professional growth.

Ewa Rogoż

Ewa Rogoż is an experienced coworking pioneer in Wrocław and the founder of IdeaPlace – the first professional coworking space in Lower Silesia. Her dedication to business development and support for entrepreneurs led to the creation of an inspiring space in the heart of the city. Ewa not only creates coworking spaces for freelancers but also micro-offices for small teams, thereby supporting diverse business initiatives in the region.