Entrepreneur vs. employee – which is better for you? In our previous article, we have discussed the difference between a businessman and an entrepreneur. We have also learned that entrepreneurs are business persons who have evolved from being merely business owners to successful business leaders. This time, we will try to analyze the difference between an entrepreneur and employee. We will also attempt to determine which of the two will give you the best offer. Although this article is a showdown between an entrepreneur and an employee, this isn’t intended to give a bias description of an employee. I’ve been an employee. I enjoyed the colorful moments and memories I had with my co-workers, including my former employer. Moreover, companies and enterprises cannot operate without employees. The purpose of this comparison is to help anyone decide what choice he needs to fully succeed in his life as a complete human being.
The entrepreneur described in this article is not just a self-employed person or one who merely owns a business, but a real entrepreneur who has transformed his business into a true entrepreneurship. Thus, we may also be comparing something “what we are now” vs. “what we can be”. There are many factors to be considered in choosing the best occupation for us. It doesn’t only include personal considerations, but also national consideration, such as the economic condition of our country. Like here in the Philippines, we need more entrepreneurs who will strongly promote capital, create more wealth, and provide more employment in our country. But again the choice is yours, and we are just here to provide you more information to help your make your best choice. The following are the things you might need to consider in picking the better occupation especially for you.
| Entrepreneur | Employee |
| 1. Earns income even while sleeping. Entrepreneurs earn passive income. | Only earns income during working hours. Employees earn active income, i.e., “no work no pay” on a daily or monthly basis.
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| 2. Has unlimited income opportunities. | Has a fixed and safe limited compensation income
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| 3. Gives jobs | Finds a job
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| 4. Responsible for making his customers, the public and his employees happy. An entrepreneur carries a greater responsibility. His income depends on his business stakeholders.
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Responsible for making his employer happy. His compensation depends on his employer. Employer pays him whether business gains or losses. |
| 5. Takes long hours of hard work during start-up. Entrepreneurs undertake their passion. They invest hard work and patience for a task they believe is worthy.
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Takes regular hours of work in his employment life. Employees usually do routine tasks. |
| 6. Gives himself enough rest and vacation when his enterprise becomes stable (flexible)
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Takes an annual limited rest and vacation allowed by his employer (restricted) |
| 7. Taxed on his income after deducting his expenses. An entrepreneur can claim as deductions to his taxable income his allowable expenses related to his business. | Taxed on his income. An employee cannot claim as deductions to his taxable income his transportation, fuel, professional, food and other expenses related to his employment.
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| 8. Takes the risk and become accountable to it. Entrepreneurs are revolutionary and innovators. | Stays in his so-called comfort zone. But can we really call it a comfort zone, when aggravation is almost a natural phenomenon?
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| 9. Hires and fires an employee. When an entrepreneur has an incompetent and irresponsible employee, he can always fire him through a due process. | Hired and fired by an employer. When an employee has an incompetent and irresponsible employer, who happens to be the one providing his living, it’s hard to just leave him.
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| 10. Gives jobs. The entrepreneur owns the enterprise; he is the job interviewer.
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Finds a job. The employee applicant is the job interviewee. |
| 11. A writer and instructor of memorandum (memo) | A reader and follower of memorandum
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| 12. Can be an owner of other similar businesses. Entrepreneurs can expand their companies, such as by franchising and sharing the slices of his success to others. | Can’t be a worker in other similar employers. Employees are typically restricted by a clause of competition agreement, that is, he is not allowed to share his skills, talents, education and knowledge to the competitors of his employer.
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| 13. Don’t require educational degrees to become an entrepreneur. We can see successful entrepreneurs who are college dropouts. Some of them are already billionaires.
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Requires a higher educational background to get a higher position. Employees are exposed to educational discrimination |
| 14. Acquires wealth at younger age. | Acquires wealth on retirement after long years of service. Except of course if you are a key employee of Microsoft, Apple or Google.
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| 15. Creates a system he likes and follow it | Mandated to follow a system whether he like it or not
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| 16. Maximize the utilization of his talents and skills. This is where the passion, enthusiasm and happiness start.
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Partly utilize his talents and skills, unless you’ve found a literally perfect job! |
| 17. Has a flexible schedule and can always cancel his schedule to give time to his family and his spiritual obligations. | Has an inflexible schedule and needs to obtain formal allowable leave to give time to his family and his spiritual obligations.
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| 18. Can do regular physical exercise if he will put it to his regular schedule | Can do regular physical exercise if his job allows a suitable schedule. There are employers who overwork their workers. But kudos to other responsible employers who sponsor fitness program for their employees.
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| 19. Can control his privacy | Can’t control his privacy when inside the workplace… most often.
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| 20. Can transfer his enterprise as a legacy or inheritance to his spouse or children. | Cannot transfer his employment as a legacy or inheritance to his spouse or children. This is one of the main reasons why most Filipino-Chinese in the Philippines are rich and most of Pure-Filipinos are poor. Most Filipinos don’t have entrepreneurial spirit. They don’t have the business and wealth to transfer to their next generations. |
So… have you made your choice? There’s no problem with being an employee or an entrepreneur, for you can be the best of either the two. The only thing is that we need to balance things up to make sure that our community will not be having a scarcity in the supply of entrepreneurs or employers, while having excessive supply of employee applicants – that’s too bad for an economy.
Victorino Q. Abrugar is a marketing strategist and business consultant from Tacloban City, Philippines. Vic has been in the online marketing industry for more than 7 years, practicing problogging, web development, content marketing, SEO, social media marketing, and consulting.
I love everything about the entrepreneurial mindset. It doesn’t say kick back and relax but continue to work hard and bless others while in the process of leaving a legacy. This was a great post, thanks for reviving my spirit today. Back to the plow!
I like how you compared employment to entrepreneurs. This should be a lot clearer for people who’re having a hard time accepting the truth that instead of ranting out about how they hate their jobs, they should start something on the side like blogging or selling something online to at-least, in a mere way, secure their future.