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Youth Unemployment Pushes Graduates To Start Up Own Businesses

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http://www.theguardian.com/business/2014/may/12/youth-unemployment-graduates-start-up-own-businesses

Amie Samba picked a bad time to graduate. It was 2009 and Britain was mired in recession, with youth unemployment on its way to a record of more than a million.

Like many of her peers, the sports science and psychology graduate found she could get short-term contracts and volunteer work, but a full-time job seemed out of reach.

"Around 2008, 2009, with the financial crash and the way the economy was, I wondered what my options were … A lot of people were quite sceptical and scared. It was so competitive," recalls Samba.

Five years on, the 27-year-old Londoner is glad the downturn pushed her to set up her own business and become part of a generation of young entrepreneurs. Labour market experts say the trend shows how fast-changing the world of work is, but unions have cautioned that it is creating an insecure and less well-rewarded workforce.

Official figures published on Wednesday are expected to show Britain's unemployment rate falling further to 6.8%. Self-employment has risen rapidly, helping to drive the improvement in the overall figure, but the jobless rate for the young is still predicted to be several times higher than average.

..

In a report last month, the TUC noted that pensioners, part-time workers and "odd-jobbers" were the fastest-growing groups among the new self-employed workforce. It found that the number of people starting their own businesses had fallen in recent years, and that the rise in self-employment was due to an increase in insecure employment such as subcontracting.

Richard Exell, the TUC's senior labour market officer, points out that self-employment is often associated with lower levels of investment, low productivity and lower pay.

"If someone is voluntarily choosing that and it's their dream or it's the slow, hard start of something that is going to make a difference in the long run, then it may well be worth paying that price," he says. "But that's not usually the case."

I think Richard has also missed off that these workers also won't be paying union subs, which I'm guessing is a huge problem for the unions?

Lower pay or the market rate?

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When I was a young graduate, we all have to move area to get work.

Thatchers Britain....divide and conquer.

Edited by TheCountOfNowhere

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everyone is a millyonaire.....note how not one of the job examples told us any facts about the finances.

Of course, these facts are private, but how many wbesites do we need to compare this or that?

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"Amie Samba picked a bad time to graduate"

Amie Samba picked a bad time to to be young.

Didn't we all - born in 79, and went to uni in 2000. I blame my grandmother.

Back to the story, Since graduating I have always held down a full time software developer job combined with a mix of DJ work and web-development. Needless to say the DJ and web development often returns more than 9-5 'salary'.

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"Amie Samba picked a bad time to graduate"

Amie Samba picked a bad time to to be young.

No she picked a stupid course to do "sports science and psychology" and wasted 2 years on A Levels and 3/4 years doing a degree, aswell as 10s of thousand of pound of her own and taxpayers money.

At no time in the history of mankind has there been a good time to graduate with such a pointless degree.

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Self-employment has risen rapidly, helping to drive the improvement in the overall figure, but the jobless rate for the young is still predicted to be several times higher than average.

It's no surprise.

For a lot of jobs being self employed doesn't mean that you're not an employee it just means that you're on the self employed tax system.

Then you can be self employed without work and still get (non JSA) benefits and tax credits.

The self employed figures don't reflect an improving economy or even a more entrepreneurial economy it just reflects the tax and benefit system. In fact in some ways it's evidence of a worsening economy.

That and the lowest base rate for centuries, more debt, money printing and manipulated stats including stuff like using crazy levels of imputed rent in the GDP figures etc etc.

Edited by billybong

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No she picked a stupid course to do "sports science and psychology" and wasted 2 years on A Levels and 3/4 years doing a degree, aswell as 10s of thousand of pound of her own and taxpayers money.

At no time in the history of mankind has there been a good time to graduate with such a pointless degree.

What about 1995 ?

Pointless degrees would still get you a decent job before immigration started...cheaper housing...easy lending....great to for anyone to have graduated.

Edited by TheCountOfNowhere

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HEFCE Data 2008-2013

Roughyl 300,000 graduates in 2013-incl full/part time and foundation degrees.

ONS report 19/11/13

'Nearly half of employed recent graduates were working in a non-graduate role
Professors Peter Elias and Kate Purcell at the University of Warwick have defined a non-graduate
job as one in which the associated tasks do not normally require knowledge and skills developed
through higher education to enable them to perform these tasks in a competent manner1.
Examples of non-graduate jobs include receptionists, sales assistants, many types of factory
workers, care workers and home carers.
Using this definition of a non-graduate job and focusing on recent graduates who were employed,
the percentage of them who were working in one of these roles has risen from 37% in April to June
2001 to 47% in April to June 2013
.'

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everyone is a millyonaire.....note how not one of the job examples told us any facts about the finances.

Of course, these facts are private, but how many wbesites do we need to compare this or that?

The Grauniad story gives the name of the company, Run Fun Starz, so you can find it on the Companies House website.

There is says "Nature of Business (SIC):

70229 - Management consultancy activities other than financial management

93199 - Other sports activities"

You can order documents at £1 if you're so inclined.

Interesting, the latest document available is a DISS40 dated 10/05/14. A DISS40 form is a Strike-Off action discontinued notification. Possibly because it looks as if accounts with a made-up date of 31/03/13 were finally delivered on 07/05/14.

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The Grauniad story gives the name of the company, Run Fun Starz, so you can find it on the Companies House website.

There is says "Nature of Business (SIC):

70229 - Management consultancy activities other than financial management

93199 - Other sports activities"

You can order documents at £1 if you're so inclined.

Interesting, the latest document available is a DISS40 dated 10/05/14. A DISS40 form is a Strike-Off action discontinued notification. Possibly because it looks as if accounts with a made-up date of 31/03/13 were finally delivered on 07/05/14.

so, she isnt self employed...shes a Director?

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What about 1995 ?

Pointless degrees would still get you a decent job before immigration started...cheaper housing...easy lending....great to for anyone to have graduated.

There wasnt these endless worthless degrees then, 1995 was pre Nulabour thus before when every man and his chicken had to go to university.

I myself went to university or should i say an ex poly in 1999 to do Marketing with Business, i left after 1 year as i could see it was utter b0llox and a waste of time, i will also add i have never met so many unintelligent people in my life as there were at university, students and lecturers alike!

Maybe a stupid degree from one of the old universities may get you somewhere as at least it shows you had some intelligence to get in, but not from an ex poly.

Edited by Corruption

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so, she isnt self employed...shes a Director?

To be self-employed you have to register some kind of business entity - as a sole trader, at the very least.

There are advantages to registering the business as a limited company, of course, not least in case it acquires debts.

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To be self-employed you have to register some kind of business entity - as a sole trader, at the very least.

There are advantages to registering the business as a limited company, of course, not least in case it acquires debts.

register?...only with the taxman, and a self employed only needs to do a tax return.he doesnt submit to any entity accounts, performance or anything at all...or have I been illegal for the last 5 years?

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It's no surprise.

For a lot of jobs being self employed doesn't mean that you're not an employee it just means that you're on the self employed tax system.

Then you can be self employed without work and still get (non JSA) benefits and tax credits.

The self employed figures don't reflect an improving economy or even a more entrepreneurial economy it just reflects the tax and benefit system. In fact in some ways it's evidence of a worsening economy.

That and the lowest base rate for centuries, more debt, money printing and manipulated stats including stuff like using crazy levels of imputed rent in the GDP figures etc etc.

I think this is dead right.

A common thing you notice on Linkedin profiles is ten + years since graduating decent job with whatever blue-chip corporate milk-round type outfit. Then suddenly since 2008 they're working for newly formed company 'their own name consulting Ltd'.

Bascially, made redundant and not been able to find anything else so set up on their own. All these people would ditch self-employed one-man-band consulting business immediately if a decent secure job came their way.

Sadly, I suspect, the longer they're out of the game the less likely they ever are to get back in at the same level.

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FlipChart Fairytales lately has good posts on self-employment stats:

Whatever else might be claimed about the rise in self-employment, the economics of it look dire. Self-employment has buoyed up the employment figures throughout the recession and given politicians something to crow about but the collapse in pay has left some in severe financial difficulty. The UK economy had a massive kicking from the financial crisis. The self-employed have absorbed a lot of the blows.

http://flipchartfairytales.wordpress.com/2014/05/13/the-self-employed-earnings-crash/

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register?...only with the taxman, and a self employed only needs to do a tax return.he doesnt submit to any entity accounts, performance or anything at all...or have I been illegal for the last 5 years?

You're a sole trader, then.

https://www.gov.uk/set-up-sole-trader

Edit: and you're right, you don't have to register with Companies House as a sole trader.

Edited by Snugglybear

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You're a sole trader, then.

https://www.gov.uk/set-up-sole-trader

Edit: and you're right, you don't have to register with Companies House as a sole trader.

'Pensioner spending is shoring up the economy in some parts of the country, many of which are also heavily dependent on self-employment. The replacement of over 65s on company pensions by the next generation of the impoverished self-employed could knock whatever stuffing is left out of these places.'

So true.

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You're a sole trader, then.

https://www.gov.uk/set-up-sole-trader

Edit: and you're right, you don't have to register with Companies House as a sole trader.

soul trader...you can see my ribs.

You can also be self employed in a partnership.

Edited by Bloo Loo

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There wasnt these endless worthless degrees then, 1995 was pre Nulabour thus before when every man and his chicken had to go to university.

I myself went to university or should i say an ex poly in 1999 to do Marketing with Business, i left after 1 year as i could see it was utter b0llox and a waste of time, i will also add i have never met so many unintelligent people in my life as there were at university, students and lecturers alike!

Maybe a stupid degree from one of the old universities may get you somewhere as at least it shows you had some intelligence to get in, but not from an ex poly.

Pointless degrees weren't a problem before 1993. After 93 the conservatives (not NuLabour) expanded higher education by turning the old polytechnics into 'new universities' and thus flooding the job market with experts in Peace Studies, Postcolonialism, Queer Theory, Gender Studies, David Beckham Studies etc. So actually it's one thing we can't blame NuLab for, though of course they didn't do anything to reverse it. Before '93 having a degree still actually meant something, though not as much as it did before 1965 (when there was another expansion of university education) when a degree REALLY meant something and put you in the top drawer.

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Pointless degrees weren't a problem before 1993. After 93 the conservatives (not NuLabour) expanded higher education by turning the old polytechnics into 'new universities' and thus flooding the job market with experts in Peace Studies, Postcolonialism, Queer Theory, Gender Studies, David Beckham Studies etc. So actually it's one thing we can't blame NuLab for, though of course they didn't do anything to reverse it. Before '93 having a degree still actually meant something, though not as much as it did before 1965 (when there was another expansion of university education) when a degree REALLY meant something and put you in the top drawer.

Look to me Nulabour and Conservative are one and the same they may well have planted the seed, but it cannot be denied that polytechnics are offering these pointless degrees to anyone who can write their name and that Blair said he wanted half of all school leavers going to Uni.

If she had done a degree in geology, metalogy i could have pointed her in the direction of a 100K PA job, but she chose the simple route.

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soul trader...you can see my ribs.

You can also be self employed in a partnership.

True.

Almost all the people I know who are self-employed or in business partnerships have registered as one-man companies or limited partnerships, mainly to limit their personal liability, though also sometimes for (completely legal) tax advantages.

That's probably just a reflection of the people I know.

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