Entrepreneurship vs. Working as an Employee

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Introduction

Some employees find self-employment particularly enticing because it allows them to choose their hours, pick their workspace, and decide what they do and when. But that’s the drawback for other employees. The decision-maker is fully accountable for their actions. If something goes wrong, it is up to the individual to fix it. Even though the choices might be wise, the pressure of being in charge might be too much to bear.

Discussion

Setting personal objectives, deadlines, and schedules is essential for self-employed success. Some people do best when they are given complete autonomy. Others find it too challenging to maintain self-discipline; without management, they cannot continue working honestly. How well someone can follow directions is another factor, as in any collaborative setting, some employees feel they want to be in charge and make all the decisions. Self-employment makes sense if one desires to lead rather than be led. Other financial distinctions exist between employees and independent contractors, as an entrepreneur “take risks with his/her own financial, social, and human capital” (Huang et al., 2021, p. 3). While employees may receive paid time off and health insurance, independent contractors are responsible for both costs. Self-employed people are responsible for their and the employer’s taxes. When starting a business, one must pay for supplies, office space, web design services, and other necessities. However, the majority of the costs are tax-deductible from business income.

Finding consumers and clients is a personal obligation for those who work for themselves. In addition, one would need to choose the price to charge them. This is a difficulty that many business owners encounter. They start with a low bid because they fear charging too much. Even then, some customers could fail to pay them when the job is finished. Learning how to set charges that cover expenses without pricing oneself out of the market is crucial—learning how to collect once the job is finished is also vital.

Conclusion

Working as an employee and running your own business have benefits and drawbacks. Entrepreneurs are frequently represented as risk-takers, joyful people who enjoy controlling their schedules and finances. The variety available to people who pursue their goals may often result in self-fulfillment and a surplus of confidence that will benefit all facets of life.

References

Huang, L., Yang Lin, S., & Hsieh, Y. (2021). Frontiers in Psychology.

Ewing Marion Kauffman Foundation Kauffmanorg. (2022).

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IvyPanda. (2023, August 27). Entrepreneurship vs. Working as an Employee. https://ivypanda.com/essays/entrepreneurship-vs-working-as-an-employee/

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"Entrepreneurship vs. Working as an Employee." IvyPanda, 27 Aug. 2023, ivypanda.com/essays/entrepreneurship-vs-working-as-an-employee/.

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IvyPanda. (2023) 'Entrepreneurship vs. Working as an Employee'. 27 August.

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IvyPanda. 2023. "Entrepreneurship vs. Working as an Employee." August 27, 2023. https://ivypanda.com/essays/entrepreneurship-vs-working-as-an-employee/.

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IvyPanda. "Entrepreneurship vs. Working as an Employee." August 27, 2023. https://ivypanda.com/essays/entrepreneurship-vs-working-as-an-employee/.

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