Employment vs Entrepreneurship

Decision of career path can be one of the most important aspect in everyone’s life. A career which is not only successful, but also gives enjoyment doing; will affect all aspects of our life in a positive way. But do we explore all the options before making a decision?

Both being an employee and being an entrepreneur have their own merits and demerits. Entrepreneurs are often seen as happy and free, risk takers that have the benefits to control time and income. They often have large uncapped potential earning and can jump from industry to industry using and developing business skills that ultimately add to their success and experience line.

I will clearly, put my views about this. Being an entrepreneur is not for everyone and in the same context, being an employee is not for everyone. It can be a tough decision, whether you want to be a job giver or a job taker. Many a time, people believe that entrepreneurship is better than employment, without giving it much thought. But, being your own boss is not a piece of cake and neither everyone’s curry. If there is a bright side, there are also many tussles associated with entrepreneurship which an employee does not face.

And on the other hand, an employee feels secure in his job while the entire onus of success or failure falls on the shoulder of an entrepreneur. But here too there are cons to this job. Nobody likes to take orders or work hard and not get credit for it. Most of the employees feel the same about using their creativity to make profits for else’s company.

Merits of Employment:

Work-Life Balance:

When your work with an organization, the hours worked generally are built into your contract and agreed upon before being hired. This means if you want to work from nine to 5, you generally can. This can allow for a better balance between your work and your home life, which is an important factor for many people with families.

Less Responsibility:

As you’re only responsible for certain functions within the organization, you generally won’t need to work around the clock to make sure the entire business is running smoothly. You will only be responsible for your assigned tasks and get paid for sure.

Steady Pay & Benefits:

With employment, you will agree upon a salary before hired and can count on receiving a steady pay amount at the end month. No job is completely secure, but you generally can count on stability depending on your contract. You also will have some sort of benefits package built into your contract. This could health benefits, benefits for taking leave and other perks such as an expense account, company car.

Development, Learning Opportunities & Resources:

When you’re working in an organization, you generally will have more opportunities to learn from other people. Most often, you will have people working above you from whom you can learn from to further develop your skills, and also other colleagues form whom you can learn cross-functional skills. Not only that, but many organizations will have resources for learning and development and are active in helping their employees further advance their skills and careers.

Demerits of Employment:

Dependency:

As an employee, you are dependent upon the rules and regulations set up by organization. Even if you disagree with instructions, management methods, strategies, etc., you have to be careful with how you voice it and don’t have the freedom to make your own decisions. You also have to wait for approval on your ideas and may have to go through many levels.

Limited Scope:

You have a specific role or function within that organization. Typically, you are siloed into one category and may have limited options for development or career progression outside of your specific trajectory or industry.

Limited Income:

As an employee, your income is limited to the agreed-upon salary and is fixed. Even if the company does well that year or if you perform well, your salary will not. To increase your salary, you have to request a raise, try for a promotion, or change jobs.

Competition:

Working with a lot of other people means you may have to compete with others to get recognition or have your ideas implemented. You generally don’t get to choose your colleagues, and who is hired, so you more often than not have to put up with them regardless of their behaviour. An organization will have shifting structures of power and authority, so you will have to learn to navigate the waters of workplace politics.

There may be different formulas for getting ahead that aren’t always based on performance and merit, and you often have to carefully nurture relationships with people with power and influence over your career.

Job Security:

Although a semblance of security and stability was included with the advantages of employment, it can also be a disadvantage depending on certain circumstances. As an employee, you can negotiate a contract, but ultimately job is in the hands of your employer.

Entrepreneurship: Be Ready…

Be prepared: as an entrepreneur you will be responsible for all of the financial aspects of the organization and for marketing, promoting your organization, and for gaining your number of clients. Entrepreneurs’ days don’t go from 9 am till 5 pm, and they are always working on ways to improve their organization. In addition, the entrepreneur can also be held legally liable for the organization, which is a personal risk, as well as a business risk.

However, you must not let these risks make you apprehensive towards taking the entrepreneurial path. There are many organizations and programs in place to help the entrepreneur start their journey, including different government agencies and NGOs.

Another important aspect of successful entrepreneurship is mentor-ship. Having someone in the field who can teach you and guide you through the needs and responsibilities of the industry is incredibly important. So, don’t be afraid to join various networking events, or to pursue employment in the field first, before venturing out on your own.

One more tip to becoming a successful entrepreneur is to be properly educated. A strong educational foundation is good for any career, whether you would prefer to just be an employee or start your own business.

That’s it…

Sarthak Niwate

info.sarthakfeeds@gmail.com