The Positives of Employment vs Entrepreneurship

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Working for an employer and starting your own business are two entirely different things. Heads of large corporations across the world can often make it seem glamorous to be an entrepreneur. While it may seem like a dream to many, operating a business can involve a great deal of responsibility, risk and hard work. On the other hand, working for someone else has its own set of benefits as well. Here is a comprehensive look at the positives of employment vs entrepreneurship.

Advantages of Employment:

  • One of the biggest advantages to working for someone else is steady income, benefits and job security that comes with most traditional workplaces. You are able to have a consistent schedule, within which you have clearly defined goals & expectations that don’t change on a daily or weekly basis.
  • Additionally, you will be able to gain structure in your life and enjoy more stability than what comes with having your own venture. Working as an employee also often involves additional perks such as health care/dental/vision insurance coverage and retirement plans that employers may provide their workers.
  • Furthermore, when an employee learns something new in the workplace they are often rewarded by receiving additional salary or promotions that give them more autonomy or opportunities in the organization they’re employed at – advantages entrepreneurs don’t necessarily have available if they don’t set up those kinds of systems on their own end first!


Employment provides a reliable, consistent source of income for most individuals that is generally not based on the ebbs and flows of the economy. With a steady job, you will know exactly how much you will be making each month, which can be a great way to build financial security.

Additionally, most employers provide benefits such as health insurance, retirement plans, and other perks which provide additional financial stability and security.


Being employed has a number of advantages, particularly for the person wanting stable and secure income. Usually you will have regular hours and legal protections which ensure your rights as an employee.

Pros of Employment:

  • Regular Salary: Employers pay employees a set salary, often linked to the national minimum wage or to the local area or industry specific salary guidelines. This ensures employees know how much they will be earning each month so they can plan their budget accordingly.
  • Fringe Benefits: Many employers provide additional benefits like pension schemes, health insurance, and discounted products and services in addition to the base salary.
  • Security: Employment provides a level of security since it is less likely that you will lose your job due to fluctuations in market demand or other factors outside of your control when compared to most business owners.
  • Training: Many employers offer additional training opportunities which may lead to better career prospects in the future.
  • Paid Holidays: Employers usually offer paid holidays for employees which allows for time for leisure activities with friends or family members without worrying about a reduction in wages.
  • Legal Protections: Most countries have laws designed to protect workers from unfair treatment at work with provisions such as minimum wage regulations, safety regulations, anti-discrimination laws, etc., which often only apply to those who are employed rather than self-employed or freelance workers.

A full-time job in Africa today offers one of the most secure forms of income, and provides payment at the end of the month regardless of performance. The job market is highly competitive, and employers have to offer a certain level of stability with their remuneration packages. This gives employees some control over what they earn and gives them a sense of comfort that they can plan their future.

Moreover, employees are provided with social security benefits such as pension schemes, medical insurance, housing subsidies, and more – all benefits that may not be available to entrepreneurs. Additionally, employment provides other security measures such as maternity leaves, annual leaves and so forth. These features make employment desirable for many African citizens today who value financial security in an unstable economy.


It’s important to note that both employment and entrepreneurship have their own unique benefits. Employment has the benefit of typically providing more stable income while entrepreneurship typically has the potential for greater returns. Let’s explore both in more detail.

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Employment Benefits:

  • More predictable income as most employers will offer guaranteed wages and raise opportunities.
  • Access to a variety of work perks such as health insurance, 401k plans and vacation time.
  • Opportunities to collaborate with other professionals when working on projects or solving problems at work.
  • Opportunities to receive employer provided training to remain current with new job skills or policies.
  • Preference for certain tax benefits, such as mileage deductions for commuting or performing job related duties.

Entrepreneurial Benefits:

  • The potential for higher returns in terms of salary or equity offerings compared to traditional employment models.
  • Flexibility over when, where and how you perform your duties/work hours.
  • Enhanced satisfaction from actively participating in an idea from concept through execution.
  • The ability to work independently without the need for approval from anyone who isn’t a business partner.
  • Increased growth opportunities by being able to perform tasks which are traditionally done by higher level employees at other organizations.

Job Security

When it comes to job security, it’s hard to beat an employer-employee relationship. When you’re employed, you are far less likely to see sudden changes in your income or be laid off with little warning.

You generally have a steady paycheck without having to worry about whether or not your projects will be successful or how the current market influences sales of your products and services. Most employers provide a certain amount of stability when it comes to job security, which can be very reassuring in unstable economic times.

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In contrast, if you own your own business as an entrepreneur, there is no guarantee of incoming revenue or longevity. You are also at the mercy of volatile markets and trends that can cause a sudden dip in sales and profits. In short, as an entrepreneur you must constantly work to survive prove more resilient than your competition.


Before choosing between employment and entrepreneurship, it’s important to consider the cons associated with each one. With employment, you will likely be sacrificing freedom for a steady paycheck. Here are some of the major drawbacks of taking a job:

  • Lack of Control over Your Work: You will have little to no control or influence over what projects you work on, how you use your time, and the direction of your career.
  • Limited Income Potential: The amount of money that you can earn as an employee is typically limited. There is not much room for advancing salaries at most organizations once you reach a certain level.
  • No Benefits for Risk Taking: Employers tend to reward stability and minimize risks when it comes to taking on new challenges. If you are looking for an opportunity to innovate or take risks in order to create new products and services, this may not be the right option.

Entrepreneurship also has its pros and cons. Here are some potential drawbacks to being an entrepreneur:

  • Uncertainty about Income & Cash Flow: Starting a business requires capital that must be used in such a way that can generate enough income in order sustain operations without additional funding from investors or loans. This means planning carefully in order to maximize returns while minimizing costs. It also means dealing with uncertain cash flows as customers come and go, market conditions change, and other unpredictable factors come into play.
  • High Stress Level: Entrepreneurs often find themselves working long hours with little reward initially—it can take months or years until businesses turn profits if they ever do at all! There is also the stress associated with managing employees and ensuring customer satisfaction levels remain high so that customers remain loyal advocates of the brand over time.
  • Higher Responsibility & Liability Risk: Entrepreneurs also carry legal liabilities that come along with running a business—including potential fines, penalties or even jail sentences depending on their nation’s laws or regulations governing their industry.

Limited Potential For Growth

When it comes to employment, the potential for growth is often limited. Employees usually have a hard time advancing and increasing their incomes as well. There are usually imposed limits on an hourly or salaried basis and some employers will only provide certain kinds of promotions, depending on the employee’s current position and their future plans for the organization. On top of that, many salaried employees do not have the opportunity to earn commissions or bonuses from outside sales.

The upside of employment is stability. Knowing each month how much you’re likely to make can take a weight off your shoulders and make budgeting easier while allowing you to focus solely on performance once you’ve agreed upon terms with your employer. Furthermore, many companies offer health benefits as well as other perks like paid vacation days, parental leave, and flexible working hours that are constantly used by their employees.

Little Control Over The Job

When employed, workers are typically bound to the job conditions that have been set by their employers. These include sets of rules regarding working hours, task performance outcomes, and salaries. Most of the time, employees are only able to influence their daily tasks and not much else. This can result in dissatisfaction with the job if it lacks room for growth and progression within their industry or sector. It can also be difficult to change jobs as employees often need to apply and get accepted before they are allowed to leave their current positions.

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In contrast, entrepreneurs have ultimate control over what they do and how they run businesses on a daily basis. Not being bound by external rules provides potential freedom with regards to:

  • What kind of work is undertaken
  • The type of clients or customers who are serviced
  • The pricing structure of products or services offered
  • How any profits should be handled or invested going forward

Entrepreneurs also have more control over personal growth opportunities since they can choose which areas they would like to specialize in as well as pursue future education possibilities more freely than most employees do under an employer ‘s guidance.

Limited Creativity

Employment limits individual creativity significantly due to the restrictions and guidelines set by employers. Employees often have to follow a rigid organizational chart, which prevents them from taking initiative on their own or making decisions that could benefit the company in the long run. This limitation can be a frustration for some employees who prefer to take the lead, but is necessary for tasks that need consistent and reliable execution. Employers are able to structure rewards and punishments as incentives for employees. They can offer promotions, bonuses, and even praise (negative or positive feedback) based on previous performance. Although this doesn’t grant total freedom of decision-making, it allows employers to provide timely guidance when needed.

Since employees are limited in how much of their own creativity they can apply within a job role, they must focus on performing well in each task assigned by their employer. While this may be beneficial for some individuals who just want a steady job with regular income, it can become tedious over time and leave individuals feeling stuck or unfulfilled creatively.


Starting a business as an entrepreneur can be a great way to gain both financial freedom and personal fulfillment. Owning your own business allows you to chart your own course, set your own goals and make a positive impact on your local economy. However, it also comes with a series of risks and challenges, and requires a significant upfront investment.

Let’s explore the pros and cons of entrepreneurship:


Deciding whether to pursue employment or entrepreneurship can be a complicated decision, and there are many factors to consider before making a firm commitment. Understanding the pros and cons of each avenue is your first step to success. Here are some advantages of employment vs entrepreneurship:

Employment Vs Entrepreneurship

Being an entrepreneur can be very rewarding in terms of potential earnings. While entrepreneurs have to constantly work on their business and may encounter numerous risks, the reward of being able revenues to increase exponentially. Employed individuals will be limited in terms of earning potential as having a certain job usually comes with a predetermined salary.

Further, entrepreneurs may also be able to reduce their tax liabilities by taking advantage of deductions for self-employed individuals. With employment, individuals are unable to take advantage of these deductions as employers will typically handle the necessary taxes which must be paid by the employee. It needs to be taken into account that entrepreneurs may need to pay more taxes depending on their annual income and other relevant factors. Those who decide on entrepreneurship should have a great idea and plan just how they are going to make money without relying on the skills or knowledge that they received while employed elsewhere. Doing this requires strategic planning and managing various different aspects from marketing through customer service to product development – all vital components for any successful business venture . Additionally, effective management of employees becomes essential for entrepreneurs looking for academic success as well as best financial outcomes for their business ventures.

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