here's my response to this, from a woman's perspective. no science, just gut
1. Small business owners pay more taxes than...
the self employed have a better understanding of their money situation and don't live in the fairytale world of gross income, you know, where you can buy a house or a car based on income that can't actually be spent. because of taxes, costs, etc we know how much we're actually earning and we value, invest and spend our dollars wisely
2. When you work for someone else, not only does your employer cover half of social security, but the company might also offer other financial benefits...
the american corporation has proven to me that these "financial benefits" often come with a price that ultimately screws the working class. weekends away from my fam for time and a half, only to have it doled out in miniscule paychecks so as to not affect "their bottom line" - other "fringe benefits" such as 401s, bonuses, pensions, etc. are too sensitive to the business cycle and their bottom line as well. ask a general motors employees how altruistically the notion of "guaranteed pension" is to their employer and see what sort of response is given
3. The self-employed also miss out on paid days off...
the self employed are not freezing their asses of in blizzards or endangering their lives in storm-of-the-century weather just because biff the butthole manager insists on "face time". neither am I entrusting minimum wage paid workers to care for my sick children or getting the guilt trip for daring to use one of "my days" to care for them.
4. Also on the line of benefits, you will have to pay for your own health insurance...
true and it can be expensive. however I actually care what I put in my body because I know I can't afford to role into the doctor's office just because I got a bad case of indigestion.
5. Not only do you go without certain personal benefits, you also miss out on some of the benefits longstanding businesses enjoy. For instance, you will not have an established inventory or client list...
maybe not, but you will enjoy the hell out of any networking opportunity, you will gain experience in promoting your own business ideas (not the company's) and formulating your own clientele.
6. Unless your business is a franchise, you will have little or no name recognition when you start...
like a manager ever remembers who you are in the first place? I doubt my manager ever went to bed thinking, "that alyric is such a good researcher. I'll have to remember to tell a friend about her."
the average american worker has no name recognition and no value beyond the repetitive task they have been trained to do. how many people know the weird guy's name that sits in the cubicle at the end, eating cheese sandwiches?
7. While building your business reputation, you will likely be competing with bigger, more established businesses...
they may have more resources, but customer satisfaction is the great equalizer. any business is suseptible to losing a share of the market, especially in this crappy customer-service-means-no-service era.
8. If you cannot afford to hire others right away, you will need to do multiple jobs...
another payoff of networking is hooking up with other individuals who are starting off on their own as well. bartering service from fellow business owners is one way to address these needs. I have a financial manager who bills me by the hour, I bill him right back for my hours. we meet at zero and call it a day.
9. Long hours, already mentioned in #3 above, come along with these extra jobs and the effort of building a business...

long hours come with anything these days. factor in the time needed to maintain employee status and you will find that just as much time, if not more, spent preparing to give someone else your time. this one was pretty funny, especially as a wife. doing my own thing, I now have more time to give to my husband, not less. no managers trying to put my sex life on their time clock.
10. You have to dedicate time to a new business, but you also have to dedicate money...
I'd rather invest in me than invest in someone else's dream. all the guilt trips associated with maintaining employee status -donating to the buy-becky-a-birthday-cake-fund or the united way-too-much-with-my-money fund. plus, if I am to go down, I'd rather go down because of my own doing. do you know what you call someone who believes the company is the end all and be all of economic security?
a former enron employee.