Entrepreneurship Vs. The Workforce: Here’s My Take.

There are a lot of different opinions floating around in regards to being an entrepreneur. However, these are just opinions. I wanted to express my take on entrepreneurship against the workforce. Therefore, I’ll need to compare the two. I’ll be doing this by expressing the pros and cons that are associated with each decision. However, it is important to note that one or both of these avenues are right for you. Some people have an amazing work ethic and can truly prosper in any environment. However, there are many people who naturally fit into one. There are no wrong answers. However, I do believe that everyone has a more optimal avenue. Therefore, let’s begin comparing.

 

Workforce

Joining the workforce means you’re signing yourself up for the traditional ‘9-5’. This is where you’re trading your time for your money. However, is this really a bad thing? It absolutely is not and society can’t run without these people. However, not everything is rainbows and sunshine. Therefore, let’s take a look at some pros and cons.

 

Pros

Working for an employer can have many positives. However, the one that most people are after is stability. Earning a job that offers you stability is the foundation of a structured life, for some people. With a steady paycheck, you can easily track your finances, save the same amount every month and most importantly, relieve a ton of weight off of your shoulders.

It’s safe to say that many people who’re a bit older wish want their offspring to be as stable as possible. The sacrifices that are made by the people before us are done that we can have every opportunity possible. Many people find happiness within the stability and there is nothing wrong with that.

 

 

Most people are very satisfied with their jobs. Therefore, there is a good chance that you will eventually find a job that checks off all the boxes. Of course, not all jobs you work at will be amazing. There have been many times where I’ve worked for a company that had amazing people but horrible management. Conversely, there are many companies where your coworkers aren’t the best. However, the management may be top tier. It all depends on your personal preference.

Another benefit of having a full-time job is that you may receive benefits. For some, this is what most people look forward to, especially those who live in the United States. With benefits, you pay a portion of your bi-weekly paycheck. However, in return, you will receive coverage for various medical and dental procedures. In many cases, the more you pay in benefits, the less you will have to shell out upfront.

 

 

Most people believe that having benefits is integral to them staying with a company. Even I loved having benefits when my employer had them. It is true being able to customize your benefits is an important aspect. This is due to the fact that other people may find less value in paying for dental and are more concerned with medical coverage. It’s safe to say that if you find a job that suits your availability, earns you enough money and covers you medically, you will most likely be happy. However, working within a company will always have its downsides.

 

Cons

The workforce isn’t always sunshine and rainbows. There are many times when people want to leave their company and find a new workplace. There is nothing worse than having a job you hate. Furthermore, it’s worst when you have a job you enjoy and something changes to make that job worst. This can be policy, management, anything.

One concern I’ve heard and seen personally is that people do not like management. This can be for a few reasons. Management can be overbearing. They want to control everything and everyone. However, no one like micromanaging. A lot of times those who’re in management forget what it’s like to be in the frontline. There is nothing more frustrating than expressing your concerns and never being heard.

There are also cases where a company will implement a new responsibility and make the worker do it without extra pay. This can be frustrating because of workers feeling exploited. You sign up for a job and since companies know that minimum wage employees are expendable, they increase their workload. Although minimum wage jobs require minimal skill, I can be quite frustrating.

The next point is that you’re nothing but a number. Unless you work for a smaller company where you make integral decisions, you’re replaceable. This is the worst feeling. People sink their hearts into a company only to be fired because of policy. Money and reputation are what matters most to many corporations. That doesn’t mean that companies don’t care about you. However, if McDonald’s has to choose between its minimum wage employees/managers and its reputation/bottom line, guess what it’s going to choose.

The last point that I want to touch on is being laid off. This is when workers get let go due to the company downsizing, closing down or moving away. This does not mean the employees fired but are no longer able to work for the company. There are many companies that have a low likelihood of this happening such as banks and large insurance companies. However, those who work in smaller sectors may feel the wrath of a shifting economy more than those in large companies.

 

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Entrepreneurship

Entrepreneurship, the concept of taking larger risks and creating a business. This has many upsides and but massive downfalls. When you’re an entrepreneur, you’re taking a skill, developing it and creating a business. Aside from the usual stigma that comes with being an entrepreneur, it can deem very advantageous. However, being an entrepreneur isn’t for everyone. I’d say that being in the workforce is suitable for most people. However, I believe that everyone should be an entrepreneur in some sense. We will go through this in our pros and cons.

 

Pros

If you’ve read any of my business or entrepreneurship blogs before, you’ll know that I am a huge advocate of creating your own business. This is due to the fact that the pros are so magnificent, in my own personal opinion.

The first positive is that you get freedom. To me, freedom is the most important thing. Freedom allows you to do whatever you want. There is no one managing you or giving orders. You’re the boss and have absolute control. This freedom stretches a long way because it also gives you the ability to creatively express yourself. Furthermore, if you have employees, you can foster an environment that everyone wants. The freedom alone is enough to win me over. However, there are a few more pros.

There is no cap on your earnings. Your business grows as much as you want it to. The more effort you put in, the more it’ll blossom. If you have a company that sells hair gel, you need to create a product that is amazing and market it well. The countless hours that are needed are monumental. However, the feeling of accomplishment is unmatched. The more hair gel that is sold, the more you earn. The more you invest in your business to create an amazing product, the more you receive back.

In a regular job, you earn a salary, benefits and sometimes a bonus. However, if you own your own business, you pay yourself. Of course, you pay yourself relative to the amount you’re making per month. There is a common saying that if you’re the entrepreneur, you eat last. However, you also eat the most.

Tax breaks are huge for those owning businesses. There are many things that you can write off as business expenses. Many of which go against your taxable income. Therefore, if you’re making a large amount of money, what you write off can be the deciding factor between paying and receiving.

Owning a business comes with a lot of responsibilities, especially if you have employees. You’re in charge of making sure the company is profitable and take responsibility. If an employee makes a mistake, the burden falls on the shoulders of you and your company.

 

Cons

One negative about being an entrepreneur is the low success rate. It’s said that 90% of startups eventually fail. Although, not in their first year of operating. Many businesses fail throughout the year.

 

 

Presumably, 80% of small businesses make it to the second year of operation. However, there is a downward trend. There are many reasons for this such as money restrictions, pricing issues, too much competition and giving up to name a few. That means that if you were to start a business, chances are you won’t see it past the first year.

The next downside is that you take all liability and risk. Although this can lead to larger rewards, oftentimes people are bankrupt by their endeavors. Of course, there are ways that you can get funding. However, if you ever get sued, your bank account and reputation are what takes the largest hit.

Lastly, being an entrepreneur means that you won’t have a stable income. Unless you have a large corporation, anything can happen that’ll make your business go under. Even if it was a large corporation these things can still happen. The fact that it’s so unreliable is a huge deterrent for most people. You don’t receive health or dental benefits unless you purchase coverage from a third party.

 

My Take

As I said before, in my personal opinion, everyone should be an entrepreneur to some degree. I’m not saying that you need to be the next Elon Musk. However, I do think that everyone should have something of their own to supplement their income. Saving money isn’t enough in many cases and the answer to most of our financial concerns is to earn more.

Find a job that you can tolerate and earn enough money in. Once you’ve accumulated a healthy living, start a business of your own. Anything that you’re passionate about can be your next business. Once you earn enough money, make that business your full-time income by diving headfirst into it. However, if you want to keep your job and have the business on the side, that’s perfectly fine.

That was my take on entrepreneurship vs. the workforce. I hope you find this information useful for your journey to becoming financially independent.