Entrepreneurs hire contractors for various reasons, including:
Cost-efficiency: Contractors often cost less than full-time employees because they do not require benefits such as health insurance, retirement plans, or paid leave. Flexibility: Hiring contractors allows entrepreneurs to scale their workforce up or down based on project needs, making it easier to manage cash flow and resources. Expertise: Contractors often bring specialized skills and expertise that may not be available within the existing team. This can be especially valuable for short-term projects or market research. Reduced Liability: Since contractors are not employees, entrepreneurs are generally not responsible for employment taxes, workers' compensation, or unemployment insurance.