Heated debates about what is more profitable — to work for hire or to do one’s business — have been going on with varying success for decades. Generally, people agree that while having one’s business allows a person to have a flexible schedule, it is coupled with responsibility unparallel in work as an employee. Working for hire, as a rule, has more constraints and fewer obligations. This paper hypothesizes that having one’s business is better as it offers more tangible benefits.
First of all, having one’s business and working for hire differ in terms of revenue. Indeed, while hired workers received a certain salary and bonuses, the revenues of an entrepreneur are not limited by any outside constraints. However, while hired workers are sure to get the money they work for, entrepreneurs run many risks which may strip them of their profits (Zhao et al., 2021). Moreover, an employee’s job, though not so well paid, is more reliable in terms of frequency of payments.
Secondly, having one’s business gives more flexibility considering the time and place of work. An entrepreneur may work from home at irregular hours provided it does not interfere with his or her business. An employee, as a rule, has a regular schedule and place of work. Though this postulate lost much of its relevance in the pandemic, still, nowadays, more employees have a fixed timetable than a flexible one.
Being an entrepreneur is more advantageous that being an employee in terms of time spent on work and the money one can get for it. However, this job is combined with a high share of risk the employees do not run. Therefore, though having one’s business is preferable for creative people ready to bear responsibility for their decisions, it may not fit those who do not want to make decisions and prefer stable profit and fixed working hours.
References
Zhao, W., Yang, T., Hughes, K. D., & Li, Y. (2021). Entrepreneurial alertness and business model innovation: the role of entrepreneurial learning and risk perception. International Entrepreneurship and Management Journal, 17, 839-864.