In most cases, an employee is a person who receives a guaranteed income, and the risks involved are less compared to those of an entrepreneur. However, an entrepreneur has many opportunities to grow in all dimensions in their career. Below are some of the pros and cons of being an entrepreneur vs. an employee. Read on!
Pros of being an entrepreneur
• Career growth
Entrepreneurship plays a vital role in driving one’s passion for fulling one’s dream resulting in career growth.
Entrepreneur has the freedom to make their own decisions because no boss is there to monitor them.
• Flexible working hours
Entrepreneurs manage their own time and can work for the hours they want because they are their boss.
• Liability to earn
Entrepreneurship provides an opportunity to grow economically by giving an individual a chance to make as much money as possible.
• Huge investments are needed.
For one to start and stabilize their own business, huge investments are required for it to succeed.
• Long working hours
Entrepreneurs work for longer hours for them to grow their businesses.
• Financial instability
The income an entrepreneur receives may fluctuate based on the demand and supply in the market.
Pros of being an employee
• Guaranteed income
A guaranteed income is a significant advantage for an employee because a fixed amount of money is deposited in their bank accounts every month or weekly hence providing them with financial security.
• Fixed working hours
Every employee agrees on the number of hours required to work for their employers and are paid or compensated for extra hours covered.
• Leave benefits
Holiday or leave benefits are available every year for an employee to be out and enjoy working on personal relationships, exercise, or hobbies.
• Lesser responsibilities
Each individual is assigned a role or task to handle, reducing the burden of thinking about how others are operating.
An employee is always working under the instruction of the employer and cannot do anything without enquiring.
• Limited income
They have a limited income because their salary is fixed.
• Limited to one scope
Employees are limited to one scope for them to develop because they only perform the assigned tasks.
In summary, with the above-stated pros and cons of entrepreneur vs. employee, you can effortlessly come up with a good income plan. You have to incorporate your priorities and passion and make the right decision on what to do to generate some substantial income.