User talk:Fatimah Eunice Sorne Obusan

Who to become: Entrepreneur AND OR Employee? By Eunice Sorne-Obusan	August 1, 2018

After college graduation the pressure to be successful is demanding every second of each passing day. In this fast phased and ever changing world, where there is no assurance, how can people move from being dependent to a stable person who can proudly say that he attained success in terms of career?

There are many legal options to have a successful career, but it all fall down to two options, to be an entrepreneur or to be an employee. Both can give you income, so we will discuss the pros and cons of being an entrepreneur versus being an employee.

Pros of Being an Entrepreneur

Freedom to Pursue your Passion Entrepreneurs have freedom to do their own thing and pursue those things that they believe they are most passionate about. The entrepreneurial lifestyle allows you to gain a deep sense of satisfaction and fulfillment from pursuing your chosen path in life in a way that is difficult to replicate as an employee.

Unlimited Ability to Earn Being an entrepreneur, the probability of earning is infinite. You are fully in charge of the bulk of income you earn, as well as the growth of your business and business strategies you took that lead to unprecedented earnings, are all up to you.

Flexible Working Hours Being the boss of your own, you no longer need to adjust your lifestyle in the 8:00 AM to 5:00 PM working hours, you are free to personalize your own schedule. You can start your day early if you’re a morning person, or work later in the day if you prefer evenings.

Independence Entrepreneurs are free to make their own decisions, take strategies they believe into and innovate freely as the need arises. You can tailor your working pattern according to your lifestyle, especially when standards, roles, and responsibilities have been implemented in your business.

Pros of Being an Employee

Guaranteed Income Employees receive a fixed, regular income monthly and concrete projection of other benefits like commissions and other annual benefits. Being an employee, you know what you expect from your income that can help you budget appropriately with your lifestyle and expenses.

Fixed Working Hours Employees have this eight (8) hours full time work per day. Additional working hours are not compulsory and are remunerated at a rate higher than the standard hour.

Specialized Responsibilities Most employees are required to work in a designated area or field, with a goal to achieve targeted results. You grow as an employee by mastering your designated task, the basis on which your performance is measured. You do not need to wear multiple hats or worry about performance in areas of the organization outside your designation.

Cons of Being an Entrepreneur

Initial Investment Most businesses require a significant amount of the initial capital plus working capital to sustain the operation. The entrepreneur must provide this amount by either a loan or selling properties.

Stressful Working Hours Entrepreneurship means you have to dedicate time and energy into your business that need long working hours in order to be successful. Until the business is successful, the entrepreneur has to take responsibility for business growth to the point of sustainability. Especially with a new business venture, you as the entrepreneur are mandated to put the hours in after employees have gone home, to ensure that the business remains profitable.

Financial Instability Because the entrepreneur’s income is dependent on several factors, any fluctuations in demand or supply could have a direct negative impact in your business. The fact that your operational cost – employee salaries, taxes, utility bills etc – are fixed, only deepens the financial uncertainty, and you may have to resort to getting into your personal savings to sustain the business operation.

Cons of Being an Employee

Security of Tenure Competitive nature of today’s world means that employees need to work quite hard to retain their job security. As an employee, you will need to update your skills regularly, follow all the rules and regulations of the workplace and prove your worth – even at that, your job security is never guaranteed.

Limited Income Employees’ annual income is fixed as stated in their contract. They won’t earn higher than this even in periods of peak performance – save for a few standard bonuses or incentives. To get any significant increases in pay, you would need to negotiate a pay increase or move to a different organization.

Limited Control and Development To work under a boss with no opportunity to think and act independently on key decisions can be devastating. Again, the constraints of employment within a specific industry or role can really minimize an individual’s scope for development. Employees often have fewer choices for career progression and can only advance within a very specific industry.

“Whether entrepreneur or employee, scientist or journalist, young graduate or top leader, there are just three big career transitions that matter: inclusion, influence, and impact.” According to Rosabeth Moss Kanter, a BA in sociology and English Literature from Bryn Mawr, followed by an MA and PhD in Sociology from the University of Michigan, “opportunities and barriers at each stage can be different for women or minorities, but knowing the challenges can help overcome them - and create change for self and others on the road to success and happiness.”

So do not be taken over by what the universe portrays as successful, be an entrepreneur or employee, or both.

References:

Rosabeth Moss Kanter, this talk was given at a TEDx event using the TED conference format but independently organized by a local community. https://www.youtube.com/watch?v=ekX3CIz-Yec

Sophia Anderson, 18 pros and cons of being an employee vs. being an entrepreneur https://www.theladders.com/career-advice

RAPID FORMATIONSIN PLAN, Pros And Cons Of Being An Entrepreneur Vs. An Employee http://yfsmagazine.com/2018/03/13

Ivan Widjaya, the Owner of SMBCEO.com, as well as several other business blogs/online magazines. http://www.smbceo.com/2018/03/14

Dr. Cory S. Fawcett, 5 disadvantages of being an employee. Learn more in my book The Doctors Guide to Starting Your Practice Right. https://drcorysfawcett.com