Employment vs Entrepreneurship- Which One is Better?

by Zaara 24, Sep 2019

Employment vs Entrepreneurship- Which One is Better?

Being an entrepreneur isn’t for everyone and in the same context, being an employee isn’t for everyone. It can be a hard decision to take, whether you want to be a job giver or a job taker. On the one hand, entrepreneurship has been the talk of the town for a while now. Many a time, people believe that entrepreneurship is better than employment, without giving it much thought. But, being your own boss is not a piece of cake and neither everyone’s curry. If there is a bright side, there are also many tussles associated with entrepreneurship which an employee does not face.

And on the other hand, an employee feels secure in his job while the entire onus of success or failure falls on the shoulder of an entrepreneur. But here too there are cons to this job. Nobody likes to take orders or work hard and not get credit for it. Most of the employees feel the same about using their creativity to make profits for else’s company.

Advantages of Being an Employee

An employee has many advantages, and they are listed as under;

1.Guaranteed Income

One of the main benefits of working under someone is to get a steady income. The fixed amount of salary is deposited on a monthly basis into their respective bank accounts, which is the means of financial security for the employee and their family. The income may also include allowances, incentives etc.

2.Fixed Working Hours

An employee is given a fixed timing of working in the office. He can work more than the working hours, but there is no compulsion as such. And the employees who spend hours in the office working extra, which is also called as ‘overtime’ are often remunerated at a higher than the standard hours agreed when the employment begins.

3.Less Responsibility

There are a less responsibilities on the shoulders of the employees than the employer. An employee is often given a particular role and is only accountable for completing the assignments that are directly related to that role whilst you are working. You don't have to worry about the low performance of other workers unless you are given that task.

Disadvantages of Being an Employee

It can be quite difficult to follow instructions on a per day basis, or get up and do the same old work every day. It is said that the grass is greener on the other side, the same way, if there are advantages, and then there are disadvantages too.


Employees are told to follow the instructions given by the employer. They have to be reliant on their monthly salary as they purchase things on finance and slip into debt. Employees with big families have increased stress and can feel a growing dependency on their job as their family grows and expands.

2.Limited Development Scope

You are given to follow the same process over and over again due to which your scope of development is limited. Employees often have lesser choices for career progression and can only advance within a particular industry.

3.Lack of Motivation

Employees measure success by how much they get ahead in their organization. But sometimes, the employees feel de-motivated because of several reasons, like work culture, partiality, not getting due credits for the work etc. after which they lack the ability to work for the well-being of the company.

If you work hard, follow the right path, you might end up enjoying being an employee.

Advantages of Being an Employer


Being an entrepreneur is following a passion and fulfilling one’s dreams. Every person aspires to become richer and choose a career path of their own. An entrepreneur is his own boss and rules his own world. When it comes to the growth factor, growth depends on the business one chooses and as per the market demand for their business.

2.Flexible Working Hours

Though the entrepreneur has more responsibility than an employee, they can work at any time. Since their peers will be manage most of the things, only the key decisions will be controlled by the businessman. One can prefer their own work schedule. There is no boss who demands to work for only fixed hours, this is no situation that they would not get paid off if do not turn up for the work.

3.Scope to Explore

Entrepreneurs get to explore more than just running a business. They get a chance to meet successful business magnets and network with them. They get the chance to know each and every obligation of an employee working in their company, they envision a broad picture of how business is actually being done and face new clients and get a chance to take partnership in other business commodities.

Disadvantages of Being an Employer

1.Stress Factor

Since the entrepreneur is responsible for handling the complete business and makes all the important decisions, after a point it can be very stressful. The decisions taken by the head will not affect his/her individual career and the employees being employed. They have an obligation to bear the business in the market.

2.Huge Investment

To start any business for an employer, you require an investment. A business owner must be competent enough to remove debts and make gains; or, they would dip deep into debts and loss. The entrepreneur should be smart enough to create wealth otherwise; they have to shut the business.

3.Risk Factor

Where there is a business, there is a risk. There is a high chance to face hiccups. One decision can change everything, and lead to the loss of reserves that are being put in the business. If the company fails to meet the aims then the place will be occupied by some other company. One should always be ready with new strategies to cope with the competition.

Overall, both the areas have their own attraction, and if you are satisfied with your job, you need to be an entrepreneur. Unless you are ready for the risks and challenges, you might as well be well-suited to become an entrepreneur. At the end of the day, the choice is yours. So, what’s it going to be?

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