Entrepreneur vs. Employee

The age-old debate between being an entrepreneur running your own business versus being an employee never seems to end. On one side, there is the allure of freedom, unlimited earning potential, and building something of your own. On the other side, there is the stability of a steady paycheck and potential career growth. So, which is the best path? The answer isn’t  black and white. Both choices come with unique rewards and challenges. Today, I will break it all down to help you decide which route aligns best with your goals, personality, and risk appetite.

The Social Media Hype vs. Reality
Entrepreneurship is often marketed as the ultimate dream. Social media coaches who are trying to sell you their products will tell you that working a 9-to-5 job means building someone else’s dream, and running your own business is positioned as the key to financial freedom. Corporate life is painted as restrictive, and being accountable to a boss is looked down on. In some instances, there are also stories of toxic workplaces and narcissistic bosses.

If you flip the coin, those who are “killing” it in corporate will share only their wins, their latest promotions, all the big and impactful projects they are working on and hashtag their posts with #greatplacetowork. Lately, though, for everyone celebrating their promotion or new role, there is someone who has been laid off and has been looking for a new role for months without success.

Which ever route one takes, the truth is both paths come with their own set of risks and rewards.

The Entrepreneur’s Highs and Lows
Being an entrepreneur means freedom and unlimited earning potential. You set your own working hours, make your own decisions, and directly reap the rewards of your hard work. For those who are mothers, the ability to be present for key milestones and events in your children’s lives without needing to ask a boss for permission is priceless. But with great freedom comes great responsibility. You’re in charge of everything. There’s no guaranteed paycheck. If you have employees, you have to be able to pay them at the end of every month. The risk of failure is high, and available research already tells us 50% of small businesses do not survive to their 5th birthday. For every success story, there are countless untold stories of businesses that didn’t survive.

The Employee’s Stability and Struggles
A full-time job offers a guaranteed paycheck, benefits, and structured career growth. Depending on your level in the organization, you don’t have to worry about making payroll or the many other challenges that entrepreneurs have to deal with. But employment isn’t without its challenges. Job security doesn’t exist anymore. Lay offs are becoming very common across industries often when employees least expect it. As an employee, you have limited control over decisions, and the feeling of being just another cog in the machine can be frustrating. Then there is office politics and unhealthy work environments. But it’s not all doom and gloom. Many employees have built wealth through their income and through strategic investments, proving that financial success isn’t limited to entrepreneurs only.

Which is the best path for you?
The best path depends on your personality,  risk tolerance, and timing. Some people thrive in uncertainty and love the challenge of building something from scratch. Others prefer structure and a predictable income. Timing also plays a role in success. Jumping into entrepreneurship based on what you see others say on social media can be disastrous, just as staying in a job you hate just for perceived job security can be equally draining.

Why the Debate is Flawed
The idea that one path is superior to the other is flawed. Entrepreneurs need someone to also work for them. Surely not everyone should be their own boss. Whether you’re an entrepreneur or an employee, your mindset, skills, and ability to adapt determines your success.

The middle ground

There’s also a middle ground. These days, many people run their businesses while still working full-time. In fact, if there’s anything we should have all learnt from the Covid pandemic, it’s that multiple streams of income are a must. It helps reduce the risks associated with both sides. 

The Bottom Line: Do What Works for You!
At the end of the day, success is personal. Some people find purpose and financial security in corporate jobs, while others thrive in the unpredictable world of being their own boss. The key is to understand yourself, weigh the pros and cons, and make a decision that aligns with your goals, skills, risk appetite, and your circumstances.

I would love to hear your views on this debate. Let me know where you stand in the comments section.

Gratitude: it’s a few days to Easter, and I am grateful for the cross ✝️ and what it represents for me as a Christian. Thank you, Lord Jesus 🙏🏽!

Gratefully