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Is it better to be employed or start your own business?

When people hear the word “entrepreneurship” many picture certain barriers, obstacles and a huge administrative burden. Others picture freedom in regards to creativity, time flexibility and financially. Just like everything else, having your own business and being employed both have their pros and cons. It is also important to understand that what one person may consider a pro, someone else can consider to be a con.

The pros and cons of employment

One of the main reasons why most people prefer employment over entrepreneurship is money. An employee has the relative security of a stable regular income, which allows them to better manage their finances on a monthly basis as well as long term.

Responsibility also plays a big role. Many people are content with only taking care of whatever is relevant to their position – they don't need to deal with other issues. The end of the work hours usually means the end of all work-related responsibilities.

On the other hand, people who are employed in a position where there isn't room for career growth or if it is very specific, they may find themselves in a monotonous job and end up doing the same thing for 30 years. The financial situation of ordinary employees, although admittedly more stable in comparison to mainly novice entrepreneurs, is also a disadvantage. This is because a salary won't increase too radically over the years, whereas entrepreneurs have the chance to increase revenues much more.

The pros and cons of entrepreneurship

Freedom is probably the main reason for people to start their business. An entrepreneur can do whatever they want, what they enjoy and what they are good at. Entrepreneurs have very different working hours – these can be altered based on personal need. It is just important to be aware that free time and holidays aren't paid.

An entrepreneur can decide who they work with and who they don't want to work with. It isn't always easy, but it is always possible to cut off people who don't “fit in”. An entrepreneur doesn't have to answer to anyone.

The financial side of entrepreneurship is more complicated. Income is not guaranteed, especially not at the beginning. Holidays can be taken as days off, but if you are managing a business on your own, your company won't run itself alone, so you won't make money during time off.

While a regular employee has a relative calmness, an entrepreneur is taking a much bigger risk. Even if the market situation is not ideal, employees will still get paid. But if the market shakes for the entrepreneur, there can be bad consequences.

We don't mean to imply that everyone is in the same boat. Some people are suited for the freedom of owning their own business, others do much better with a stable job – everyone just needs to figure out what they like. The bottom line is if you don't enjoy or are sick of what you are doing (as an entrepreneur or an employee), it means that you spend a third of your day doing something that has no meaning to you, which is a shame and a waste of time.

This information is brought to you by in cooperation with our partner Comeflex Prague 

More articles in cooperation with Comeflex Prague:
Difference of a virtual office vs. a real or a shared office in Prague
Comeflex Offers Tailor-Made Assistance for Your Business in the Czech Republic 


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