Introduction to Self-Employment

Overview

Framework:
RQF
Level:
Level 1
Unit No:
F/504/7662
Credits:
3
Guided learning hours:
22 hours

Assessment Guidance

Portfolio of Evidence

Aim

The number of people becoming self-employed has increased significantly partly due to improvements in information technology. Self-employment gives a person greater flexibility, control over the work they do and a sense of independence. This unit will introduce the learner to opportunities that are available to them, the skills and behaviours they need to be successful, the practicalities of being self-employed and the support available to them.

Unit Learning Outcomes

1

Know about self-employment opportunities in a given sector.

Additional details

Before assessment begins the learner needs to select a given sector. The learner will discuss this with the tutor. The examples given below are a small sample of possible sectors. The learner can choose a sector not shown below.

Possible sectors include construction, health and social care, sales and marketing, hair and beauty, sport and fitness, hospitality, home working.

Products may include beauty products, household equipment.

Services may include plumbing, painting and decorating, electrical, care of the elderly, child care, door-to-door sales, hair styling, personal trainer, catering, telephone marketing.

Working patterns may include working hours, number of days in the week, holiday time, out-of-hours.

Assessment Criteria

  • 1.1
    Describe different types of products or services that are offered by self-employed people in a given sector.
  • 1.2
    Describe the working patterns of self-employed people in a a given sector.
2

Know about the characteristics of successful self-employed people.

Additional details

Skills: planning and organisational skills, handling money and recording income and expenditure, ability to work well with others, ability to work without supervision.

Behaviours may include self discipline, patience.

Assessment Criteria

  • 2.1
    Describe the skills and behaviours that are needed to be a self-employed person in a given sector.
3

Know about income and expenditure.

Additional details

Income sources may include individual customers, businesses, government departments.

Type of expenditure may include equipment, cost of marketing business, letting premises, travel, electricity, tax, telephone.

Types of records for income may include the customer name, amount paid, payment date, if the payment is taxed at source.

Expenditure records will include any costs incurred for equipment, services used.

Assessment Criteria

  • 3.1
    Describe sources of income for a possible business in a given sector.
  • 3.2
    Describe types of expenditure for a possible business in a given sector.
  • 3.3
    Describe the sort of records a self-employed person needs to keep in relation to income and expenditure.
4

Know about planning for self-employment.

Additional details

Planning for self-employment is extremely important to make sure the business is a success. Learners may consider some or all of the following:

  • how they are going to finance the business before they are paid
  • equipment and resources needed
  • how they are going to market their product or service
  • equipment and resources required
  • working patterns particularly if they need to fit around other commitments

Banks, Building Societies and the Citizens Advice Bureau are good sources of information when finding out how to present plans to financial advisors, customers and possibly other sponsors.

Assessment Criteria

  • 4.1
    Describe the different aspects to be considered when planning for self-employment.
  • 4.2
    Explain how planning for self-employment can contribute to success.
  • 4.3

    Describe ways of presenting plans so that they can be shared with others.

5

Know about the support available to people considering self-employment.

Additional details

Learners will be able to use a range of resources to identify potential areas of support including the internet, banks, financial advisors and libraries.

Support could include financial help, loan of equipment, discounts.

Assessment Criteria

  • 5.1
    Describe the different sorts of support needed when starting up a business.
  • 5.2
    Identify sources for the support identified as necessary.