What are the benefits of becoming an entrepreneur as opposed to working for others

Growing up, you are always told to study hard and get a good degree. Having 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 their 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’re ready to quit your job and follow your dream of becoming an entrepreneur, here we will talk about the difference between employees, self-employment, and entrepreneurship. Also, we will cover ten reasons why being an entrepreneur is better than employment.

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 the nature of your work and life, including your hours, your income, and your goals. Many people think that they can’t handle being an entrepreneur. 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:

Employment

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 they are obliged to implement those procedures. These procedures aim to ensure the most optimal use of their technical skills and knowledge to perform the work.

Self-employment

As we have already said, self-employment is a business that provides a job for the one who starts that business. The key competence of that company is the technical skills of the self-employed person. 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. The 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 contract but based on the demand for the product or service by the customers or the clients. 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, the amount of salary, and the way 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?

Entrepreneurship

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. Even if two or three employees are in the initial stages, the company needs to be managed.
• 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, in addition to the technical skills needed for a self-employed person, you will also need managerial and entrepreneurial skills. Managerial skills refer to the ability to manage the organization, while entrepreneurial skills refer to creativity and 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. When you’re not sure if a business idea will work, you can’t turn to anyone else for validation. 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 make sure 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. There are times when 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 will need to have a budget and stick with it. It is not wise to spend more than you earn.

Your income will not be limited to a fixed amount when you own a business. 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, and 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 of them is that the entrepreneur has more autonomy compared to 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. Some 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 a person 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 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 even matter if you came up 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). To put it simply, 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 to constantly be 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 it is your responsibility to make up for the days you miss.