5 answers
Eloise
Student
Henderson, Nebraska
1
Question
Updated
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Entrepreneur vs. Employed by Company
Do you think people are more successful self employed or employed by a company?
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5 answers
Mitanshi Agrawal
Software Developer
2
Answers
Noida, Uttar Pradesh, India
Updated
Mitanshi’s Answer
Both have their own advantages and disadvantages. The financial growth for an entrepreneur is much greater than an employee but an employee will get at least a fixed amount of salary.
the entrepreneur is free to make their own decision personal or professional. They can work whenever they want but Employee needs to follow the working hours and their shifts.
the entrepreneur is free to make their own decision personal or professional. They can work whenever they want but Employee needs to follow the working hours and their shifts.
Thank you for the advice.
Eloise
Robert Musselwhite
Entrepreneur
7
Answers
Naples, Florida
Updated
Robert’s Answer
Good question and that would depend on your definition of success. I’ve been both and here is my perspective. An entrepreneur builds his own success. An employee is paid by someone else to help them create their success. Employment is never in my definition of success because it’s simply trading time for a fixed amount of money to help build another persons financial freedom.
Great books to read on this subject are Robert Kyosaki’s Cash Flow Quadrant or Business of the 21st Century.
Great books to read on this subject are Robert Kyosaki’s Cash Flow Quadrant or Business of the 21st Century.
Betty Yip, PMP, CSM
Senior Director, Technical Program Manager
72
Answers
San Francisco, California
Updated
Betty’s Answer
Hi Eloise,
There are so many factors and variables in achieving success through your own business vs working for an employer. It all depends on the type of business, your personal motivation and preferences, and what you envision for yourself in the future. It's definitely not an apples to apples comparison though. I can think of many small business owners who have been successful in their own way - caterers, construction, realtors, attorneys, software startups and equipment/parts manufacturer. The general makeup of those entrepreneurs is that they are not satisfied working for a company and have a conviction that they can build something better or provide a good service. Sometimes the long hours are not a heavy burden, but sometimes it does take them away from spending time with loved ones or going on vacation. There's more risk involved and the financial outcome is not guaranteed.
Being employed at a company is more straightforward in the sense of performing the duties as described in the job description and taking on additional responsibilities as you stay longer in the job. There's the security of medical and other benefits and getting promoted down the road. Salary varies by profession and grade level, but I've known many people who have been able to retire after working at their chosen profession at companies before the retirement age of 65. Some entrepreneurs are still working and probably will not have the financial means to retire, whereas others have already made a lot of money and are serial entrepreneurs.
It's really a personal choice and I don't see why both can't happen at the same time. I also have my own "business" as I have several investment properties, but I also work at a company 9-5.
There are so many factors and variables in achieving success through your own business vs working for an employer. It all depends on the type of business, your personal motivation and preferences, and what you envision for yourself in the future. It's definitely not an apples to apples comparison though. I can think of many small business owners who have been successful in their own way - caterers, construction, realtors, attorneys, software startups and equipment/parts manufacturer. The general makeup of those entrepreneurs is that they are not satisfied working for a company and have a conviction that they can build something better or provide a good service. Sometimes the long hours are not a heavy burden, but sometimes it does take them away from spending time with loved ones or going on vacation. There's more risk involved and the financial outcome is not guaranteed.
Being employed at a company is more straightforward in the sense of performing the duties as described in the job description and taking on additional responsibilities as you stay longer in the job. There's the security of medical and other benefits and getting promoted down the road. Salary varies by profession and grade level, but I've known many people who have been able to retire after working at their chosen profession at companies before the retirement age of 65. Some entrepreneurs are still working and probably will not have the financial means to retire, whereas others have already made a lot of money and are serial entrepreneurs.
It's really a personal choice and I don't see why both can't happen at the same time. I also have my own "business" as I have several investment properties, but I also work at a company 9-5.
David Loring
Attorney and project management
11
Answers
Seattle, Washington
Updated
David’s Answer
Your question asks who is more "successful", an entrepreneur or an employee. So, the first question that you need to answer is, what is your definition of success???
If, to you, success means getting a paycheck on a regular basis, climbing a ladder built by others, diminishing risk or not taking on too much personal risk, then maybe working for others offers you more success.
If you prefer to have more risk/reward opportunity, possibly be more independent in the directions you choose to follow, then maybe being an independent business person is for you.
So, first, think about the things that are the most important to you, individually. Are you a risk taker? Do you prefer stability? Do you need a steady stream of income to support student loans, a family, etc.? Or, can you live with the variability of income that always comes with self employment.
Once you have charted out what your personal tolerances and preferences are, then see whether your personality fits better with that of an entrepreneur or an employee.
Both routes can achieve great successes or lead to frustration. You never really know until you look in the rear view mirror. There may be a way to combine both, but, no one can give you the "right" answer. Think about your strengths and weaknesses and then see which path is better suited to your personality traits.
If, to you, success means getting a paycheck on a regular basis, climbing a ladder built by others, diminishing risk or not taking on too much personal risk, then maybe working for others offers you more success.
If you prefer to have more risk/reward opportunity, possibly be more independent in the directions you choose to follow, then maybe being an independent business person is for you.
So, first, think about the things that are the most important to you, individually. Are you a risk taker? Do you prefer stability? Do you need a steady stream of income to support student loans, a family, etc.? Or, can you live with the variability of income that always comes with self employment.
Once you have charted out what your personal tolerances and preferences are, then see whether your personality fits better with that of an entrepreneur or an employee.
Both routes can achieve great successes or lead to frustration. You never really know until you look in the rear view mirror. There may be a way to combine both, but, no one can give you the "right" answer. Think about your strengths and weaknesses and then see which path is better suited to your personality traits.
Megan Nerad, CPA
Consulting Manager at PwC
43
Answers
St. Louis, MO
Updated
Megan’s Answer
With great power, comes great responsibility.
Being an entrepreneur means being a founder or a CEO. Usually when you're a part of a company, you have to take some time to work your way up the corporate ladder.
I could personally never be an entrepreneur since I am too risk-averse. I prefer to be in larger corporate settings that already have built out structure, organization, and resources.
That's who I am, and that's okay. So success to me would be staying true to who I am. Who are you and how do you measure success for yourself? Does it matter what others think?
Being an entrepreneur means being a founder or a CEO. Usually when you're a part of a company, you have to take some time to work your way up the corporate ladder.
I could personally never be an entrepreneur since I am too risk-averse. I prefer to be in larger corporate settings that already have built out structure, organization, and resources.
That's who I am, and that's okay. So success to me would be staying true to who I am. Who are you and how do you measure success for yourself? Does it matter what others think?