10 Reasons Being An Entrepreneur Is Better Than Employment
Growing up, you are always told to study hard and get a good degree. A good degree will land you a good job and, in return, a better life. This is the mentality that some of us absorbed growing up. This belief is hard to throw away for some people because it has been their belief since childhood. Owning a business is challenging.
However, this belief is now starting to change in the modern era. With the emergence of Social Media and online retail stores, online selling and online businesses are flourishing. The growth of entrepreneurs worldwide is not only limited to online businesses. According to the Kauffman Index of Startup Activity, over 550,000 Americans launch new businesses every month because of cultural and economic factors. You’re searching for the advantages of having your own business.
If you ask yourself if a businessman is a career and you are ready to quit your 9 to 5 job and follow your dream of becoming an entrepreneur, we will discuss the difference between employees, self-employment, and entrepreneurship. Also, we will cover ten reasons why being an entrepreneur is better than employment.
Table of contents
- Employment, Self-employment, and Entrepreneurship
- 1. You are your boss when you are an entrepreneur instead of an employee
- 2. You own your time and make your own decisions for your business
- 3. Unlimited opportunity for income
- 4. Entrepreneurs are happier and healthier than employed people
- 5. Building a business is more satisfying
- 6. You feel more motivated as an entrepreneur instead of being employed
- 7. As an entrepreneur, you can live the lifestyle you like
- 8. You Can Work From Anywhere
- 9. If You are an Entrepreneur, There is No Dress Code like When You Are Employed
- 10. Flexibility and Independence
Employment, Self-employment, and Entrepreneurship
For many, the lure of entrepreneurship can’t be resisted. Some of the most successful people in the world are entrepreneurs. It’s easy to see why. As an entrepreneur, you have complete control over your work and life, including your hours, income, and goals. Many people think that they can’t handle being an entrepreneur and choose a 9 to 5 job vs entrepreneurship.
But the truth is that being an entrepreneur is better than employment in many ways.
That’s not true in traditional employment. You don’t always have a choice in where you live, when you start and finish your workday, and how much or little you earn. In short, it’s no wonder that so many people are attracted to the idea of entrepreneurship.
Also, it’s no secret that being an entrepreneur is much more complex than having a regular 9-5 job, especially at the beginning. You have to juggle the many different responsibilities regarding daily business operations. Sometimes the stress of it all becomes too much and leads to burnout. Many of us think that the only way to overcome the challenges of being an entrepreneur is by working extra hard.
Often a self-employed person and an entrepreneur are misunderstood and are used like they have the same meaning. Although every entrepreneur was considered a self-employed person, this is still the case if we define an entrepreneur as a person who starts a business. Yes, he is a person who starts a business or enterprise. Still, an entrepreneur starts a business to add value to the basic resources by creating something from nothing in the form of a new product or service to meet an unsatisfied market.
Now the question arises what about those who do not add value to basic resources? What about those who do not make a profit but only provide their salary?
Therefore, most experts separate the word self-employment from entrepreneurship because the main difference is that the self-employed person creates their own job. In contrast, the entrepreneur creates a business that requires a team of people and more resources that the entrepreneur will adequately manage.
So, for now, let’s first start looking at the difference between these three career options:
Anyone working in a company owned by other people is employed. What are the basic characteristics of employment?
- Employment Contract. Every employee in the company signs an employment contract for a definite or indefinite time and regulates the fundamental rights and obligations between the employer (the company) and the employee. Contract duration, termination, amount of salary, work performed by an employee, and working hours are all regulated in the contract.
- They have fixed working hours. Employees usually have fixed working hours, such as 9 am to 5 pm. So every day, the employee goes to work, works for 8 hours, and leaves the job after work.
- Regular monthly salary. The employee is not the one who should think about the salary payment. It is the employer’s responsibility or the company in which he works. The employee receives a monthly salary for the work performed under the employment contract.
- Employees always have bosses. Employees have bosses, or managers, who are accountable for their work. Managers plan what they need to do, organize them, and control and evaluate them. Even during their career advancement, when they reach a top management position, they will report to the company’s owner or the company’s shareholders.
- There is no flexibility in decision-making. Because they have someone who plans for them, organizes, and controls them, employees often have poor opportunities for decision-making flexibility. They make only routine decisions. For example, they can not decide on any changes in work performed without the approval of their bosses (managers).
- They are working according to procedures created by other people. The employees have operating procedures that the company has developed for that job and are obliged to implement them. These procedures aim to ensure the most optimal use of their technical skills and knowledge to perform the work.
As we have already said, self-employment is a business that provides a job for the one who starts that business. The company’s key competence is the technical skills of the self-employed or independent business owner. Because of that, they must be present in their businesses and work for the business to operate normally. The basic characteristics of self-employment are the following:
- Work for themselves. Self-employed persons do not work for someone else but work for themselves in their own company, which they founded to create a job for themselves.
- They don’t have defined exact working hours. The working hours of self-employed persons are not defined by employment contracts but based on the customer or client demand for the product or service. Therefore, the self-employed can work 8, 10, and 15 hours during the day, but when there is no work, they can work only 3 or 4 hours.
- If they succeed in earning – there will be a salary. They are the ones who have to provide enough money to pay their salary. Without earning, there will be no salary.
- They don’t have bosses; the only boss is their customers. Because the company is its own, they are usually both managers and persons doing all operations inside the company. They do not have “bosses,” except customers who determine their working hours, salary amount, and how they work.
- They have flexibility in decision-making. But all the consequences of those decisions are only on them. They are the creators of their own success or failure because, in addition to routine decisions, they also make decisions about their business.
- The focus is on technical skills. The very existence of the company founded by a self-employed person is based on the technical skills of the founder. Without them, that enterprise will not be able to operate normally. Imagine, will the company work for a hairdresser who is also the only employee if he or she is not at work for several months?
The basic characteristics of this career option are the following:
- They manage and work in their own company. Entrepreneurs start their businesses and employ a team of people who will help them create, grow and run a business. Their focus is not to create a job for them but to create a company or a sustainable business.
- They don’t have defined exact working hours. As self-employed persons, entrepreneurs don’t have defined working hours, especially in the initial stages of their business startup. They will spend most of their time building a business at this stage.
- If the company succeeds, entrepreneurs will earn a lot of money. In most cases, entrepreneurs do not receive a salary at all. But if the company succeeds, they will get much more than the salary they would work for the company.
- They are in the top management of the company. Because starting a successful business will require a team of people, entrepreneurs must manage so they are in the company’s top management. The company needs to be managed even if two or three employees are in the initial stages.
- They have flexibility in decision-making. Entrepreneurs have complete flexibility in making decisions because the company is their own. They make routine and strategic decisions for the future of the business.
- There is a need for technical, entrepreneurial, and managerial skills. To be an entrepreneur, you will also need managerial and entrepreneurial skills and the technical skills needed for a self-employed person. Managerial skills refer to the ability to manage the organization, while entrepreneurial skills refer to creativity, innovating, and taking calculated risks.
Now, let’s look at ten reasons why being an entrepreneur is better than employment:
1. You are your boss when you are an entrepreneur instead of an employee
You can decide what to say and how to say it. No one is there to tell you what to do, only you. No boss is breathing down your neck. Nobody ever says, “Well, you did a good job on that report yesterday.” You may never have to give a performance review.
But, you need to remember one thing: you’re the only one responsible for everything you do. If you mess up, nobody else gets to blame you.
As an entrepreneur, you are your own boss and must answer only to yourself. You can’t turn to anyone else for validation when you’re unsure if a business idea will work. Instead, you must decide for yourself.
2. You own your time and make your own decisions for your business
This is a classic but enticing reason to start your own business. You are your own boss, and you own your own time. You don’t even have to worry about getting fired because you are the one who fires people. Owning a business will also give you the freedom to make choices.
You own your time and make your own decisions for your business. What does that mean? You decide when to work on what and when to take breaks. It means that you determine when it’s okay to sleep (as long as you’re well-rested) and when you’re well-rested, it’s okay to spend your day. And it means that you always ensure you’re working on the projects that give you the greatest return on your time investment.
If you are frustrated with your current job, maybe it’s time to start your own business. You will be your own boss, and you will set the rules. In fact, you will be able to set your own hours.
3. Unlimited opportunity for income
You’re getting the same amount of money every month for many years if you’re employed. Sometimes you need more money or want a lifestyle change, but these things will have to wait because your salary does not have a raise.
The idea behind starting your own business is that you will make a living doing what you like to do. However, your business should be able to generate enough income to pay for your bills. You should never forget that you need to watch your finances. After starting your own business, you must have a budget and stick with it. It is not wise to spend more than you earn.
When you own a business, your income will not be limited to a fixed amount. Building a business is hard and takes time, but the opportunity to earn more money is a good benefit to consider when thinking about building a business. You can start your business using your savings or applying for a brick fundraiser. As long as you have that good idea, it will be easy to find investors.
4. Entrepreneurs are happier and healthier than employed people
Many studies compare the happiness levels of entrepreneurs versus those in the “9 to 5” world. What does the data show? Entrepreneurs tend to be happier and healthier than their corporate counterparts.
According to Forbes, people who manage their own businesses are happier than those who are employed. There is more work-life balance; in a way, using your creativity to build something is taking the stress of working for a living.
One interesting thing about happiness is that we tend to be happiest when our expectations align with reality regarding our satisfaction. But if there’s a mismatch between what we expect and what we experience, we tend to feel less satisfied than if we’d gotten what we expected. That’s true even in a good economy. There are many reasons why this happens, but one is that the entrepreneur has more autonomy than the average employee.
5. Building a business is more satisfying
Many people start a business because they love what they’re doing. They find a need, problem, or opportunity and create something that meets that need or solves that problem. Often, it’s easier to build a business than it is to build a career. It’s also much more flexible and gives the creator more opportunities to engage with others.
This might not be the case for some people, but for many people who want to use their hands to build something, owning a business is very satisfying. Owning a business will need more effort than being an employee, but you also got a chance to create something that you will be proud of in years to come.
Business owners’ reason to feel satisfied is not limited to them being able to be creative on their own terms. Many business owners feel that helping people and their families by giving them jobs is satisfying too. Businesses are also known for boosting the economy of a community. Being able to help back your customers are worth it for some people.
I’ve never met someone who said they enjoy working for someone else. However, most people who work for themselves love what they do. They enjoy their day-to-day interactions with their clients and customers. There is more satisfaction with the work done for yourself because you are the source of your success.
6. You feel more motivated as an entrepreneur instead of being employed
You are more involved in your own success. Also, you can make decisions faster, more often, and more accurately. Also, you have complete freedom over the product. You have the opportunity to make an impact on people. You will experience the greatest satisfaction from creating something from scratch.
When you manage your business, either you succeed or fail. Whether you fail or succeed, you’ve learned something, and that’s one of the most motivating features of owning a business. It would be easier for you to express your ideas and boost your confidence if you’re motivated to do something.
You’re motivated to do more when you feel like you have more control over the process. Being employed and having a boss tell you what to do feels like less of a motivator than controlling a project yourself.
7. As an entrepreneur, you can live the lifestyle you like
This is why some of the ex-employees took the shift and became entrepreneurs. You can live your life the way you like it, especially if your business is doing pretty well. You wouldn’t need to write a letter when you want to go on vacation. It doesn’t matter if you came to work not wearing your uniform.
You don’t even need to explain when you’re late (an exception to this is when you have an important meeting or event). Simply put, you get more freedom to do anything as long as you sort everything in your business.
As an entrepreneur, you can take steps towards living the lifestyle you want. There are no shortcuts; you need to work hard, but not too hard, to achieve success. You can achieve this if you build the business with the right systems that will work for you and not the business where you will work.
8. You Can Work From Anywhere
An entrepreneur doesn’t have to work in an office or sit in front of a computer. Some of the most successful startups have their employees working from home, while others have employees who only work during regular business hours.
Some entrepreneurs use their mobile phones to manage their business, such as running their marketing campaigns, keeping track of their finances, and even communicating with customers and colleagues. With the ever-growing importance of working from anywhere and the ubiquity of smartphone technology, some businesses have been built around the ability to work remotely.
It doesn’t matter if you want to work on a beach, ski resort, or local coffee shop. There are ways to live your life. If you’re just getting started, there’s no reason why you can’t start working from anywhere as an entrepreneur. Working from home means being able to work whenever you feel like it and not having to worry about your boss or co-workers staring over your shoulder. However, you need to understand that while working from home can be a great option, it still comes with potential drawbacks.
9. If You are an Entrepreneur, There is No Dress Code like When You Are Employed
There are no dress codes for being an entrepreneur. Don’t feel like you have to change your outfit if you get dressed in the morning. You don’t need to have the right suit, shoes, shirt, tie, etc., to be successful in the business world. The only thing that matters is the value you are shipping out there and the ideas flowing through your mind.
Your clothing should be appropriate for the type of industry you are in and the people you will interact with. You don’t need to wear a suit every day. Your outfit should reflect the image of who you are. It is not who you are but what you represent that matters.
10. Flexibility and Independence
Entrepreneurship is not a job. It’s an identity and a lifestyle. Freedom to pursue new opportunities. Freedom to fail, succeed, and keep pushing forward no matter what happens. The key is constantly thinking about whether it’s time to move on. It’s about thinking about your customers and yourself, what’s next, and what you can do better.
Flexibility is one of the most common traits among successful entrepreneurs. They are self-directed, self-starters who are independent thinkers and problem solvers. Entrepreneurs are always looking for ways to make their businesses grow and be successful.
When you own a business, it gives you a lot of flexibility. If you want to travel, you can pack up your bags and go on a vacation. If you want to take a vacation, you don’t have to ask your boss first because you are the boss. You can take as much time off as you need. Your company won’t question your absence, and you must make up for the days you miss.
Frequently Asked Questions
Employment is when you work for another company, have an employment contract, fixed working hours, and a regular monthly salary. As an employee, you will have bosses, so there is no flexibility in the decision-making process. Also, you will work according to procedures created by other people.
Self-employment is a business that provides a job for you as an independent business owner. You are working for yourself without defined working hours. The only boss, in that case, will be your customers, but you will have flexibility in the decision-making process. The focus is on your technical skills.
Entrepreneurs create a business that requires a team of people and more resources that the entrepreneur will adequately manage. You will manage and work for your own company without defined working hours as an entrepreneur. You will be in the top management with the highest possible flexibility in the decision-making process. As an entrepreneur, you will need technical, entrepreneurial, and managerial skills.
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