The 4 Key Differences Between Employment And Entrepreneurship

 

I have been working in corporate world for around 4 to 5 years in total before embarking in the entrepreneurship world full-time.

Therefore, I have seen the real big difference between employment and entrepreneurship.

And I would like to share them in today’s post.

 

Risk

Employment

Employment is considered a no risk career for many people because of the assumption that it can last until the retirement age.

This may be a true thing in the past but now this is not the case anymore.

WHY???

Many young graduates from university are produced on regular basis.

This has contributed to the supply (the workforce) is more than the demand (the job).

Companies are no longer having the shortage of talents because of this scenario.

Thus, the older employees may be having the risk of losing job to younger generation.

Not to mention that companies especially the big ones are leveraging on the technology and automation heavily nowadays to support their business functions.

We can see this trend are taking place in the industry such as banking, airlines, F&B among many more.

This is causing the job demands are getting even much more smaller now.

That’s why we can see a massive layout of employees in the news everywhere in the world.

Entrepreneurship

The risk may be high at the very initial stage.

This is because it’s something new that you’re not familiar with and there is a steep learning curve.

But once you’ve mastered the game of entrepreneurship, the risk would be going down significantly.

Because you’re the owner of a business, you’re no longer bound by the job demand in the market or age risk.

So, you can now manage the risk you have.

 

Income

Employment

There is income starting from the 1st month working.

You’re going to have a stable monthly income with the condition you’re remain employed.

Your income is dependent on the company you’re working for.

You can’t expect to see a sharp increase in your income.

There might be a minor increase in the income only after a year working in the same company.

Entrepreneurship

There might be zero income for many months before the results start rolling in.

The income may start low but can grow exponentially when your business is growing.

Sky is the limit when comes to income in entrepreneurship.

There is no limit of how much income you can earn.

You have the control on the income you desired to achieve.

 

Environment

Employment

You can’t really know what kind of working environment you’ll be in until you start working in a particular company.

If you’re in a good working environment, then it’s a great news because most of your time would be spent there.

You’ll find it much easier and productive working in a good environment.

However, there is also a possibility that you’ll be ended up in bad working environment.

Working in a bad environment can be very torturing and de-motivating.

Entrepreneurship

Because you’re your own boss, you can decide where you want to run your business.

Especially, in the advancement of internet, there are various online businesses you can venture in.

With online entrepreneurship, you can just work from the comfort of your own home.

Or anywhere you want as long as you have laptop and internet connection.

You have the power to create your own working environment.

 

Time

Employment

You have a fixed time working schedule which is usually from 9am to 5pm, weekdays.

You’re expected to be working in that time frame.

But that doesn’t mean you wouldn’t be required to put in more hours than that.

In most of the time, you may need to spend an extra 2 to 3 hours of working per day.

The longer years you’re in employment, the more busier you get and less personal time you have.

Entrepreneurship

You’re no longer bound by a fixed working schedule.

You have the flexibility to decide how many hours you want to work per day and when you want to work.

In certain days you can choose to put in more hours and certain days you can choose to put in less hours.

At the initial stage of entrepreneurship, you should put in more time because you need to learn many skills and stabilize your business.

But in entrepreneurship, you have the freedom to outsource certain task/operation of your business to 3rd parties.

Thus, you can have more personal time.

 

Summary

Employment does has it own benefits in short-term whereby you are guaranteed to receive your monthly salary and lesser risk when you’re young.

But in long-term, employment does not give you control to a lot of things.

Where as in entrepreneurship, what is has to offer is in the long-term which allows you to better control your risk, income, work environment and time.