Study Reveals: Red Tape Dampens Motivation for Many Independent Workers
Here's a paraphrased version of the text:
Based on a poll by the German Institute of Economics (IW), approximately one-third of solo freelancers in Germany are pondering a move out of the country. Around a quarter of the surveyed folks said they were seriously considering quitting self-employment. Excessive red tape is the major factor causing this exodus, according to the research, which was commissioned by the Federal Association for Independent Knowledge Workers, the German Founders and Self-Employed Association, and the Bavarian Industry Association, and included 6,300 solo freelancers.
The key driver behind this immigration wave is the complicated and unpredictable process of determining one's status, where each contract is scrutinized individually to determine whether an individual truly qualifies as self-employed. This leaves self-employed individuals and their clients in legal limbo. As a result, more and more clients are shying away from hiring solo freelancers. The study found that the intention to emigrate is especially strong among young, educated freelancers, such as IT contractors.
Andreas Lutz, chairman and spokesperson of the Federal Association of Self-Employed Association (BAGSV), expressed that freelancers yearn for more respect and legal assurance. "Yet, our government treats us like an annoyance." According to the Ifo Institute, the business climate for solo freelancers and small businesses is worse compared to the economy overall.
Monday, 23rd May 2023
- The main factor driving emigration is the burdensome and uncertain status determination process.
- Young, educated freelancers, such as IT contractors, have a high intention to emigrate.
- The business climate for solo freelancers and small businesses is worse compared to the economy overall.
- Freelancers want more respect and legal protection but feel treated as an annoyance by the government.
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In the context of this study, bureaucracy associated with the complex and unpredictable process of status determination is causing many solo self-employed individuals to consider leaving the country, highlighting the impact of bureaucracy on self-employed persons. Furthermore, the survey revealed that young, self-employed IT contractors, in particular, show a strong intention to migrate due to the burdensome red tape.
