As time passes and newer generations reach the age where they are expected to work and earn for themselves, a lot more people are willing to start up their own businesses and become entrepreneurs. The argument of whether to be an employee or an entrepreneur is a long one and there is no right or wrong answer.
The answer truly depends on the person and what they are more likely to do. However, if you’re confused about what you want to pursue later on, this article helps list down the pros and cons of being an entrepreneur so you can weigh the benefits and find out if it is suitable for you or not.
Before we dive into the pros and cons, we spoke to Parvez Abbasi regarding the startup environment in Pakistan and he provides key insights you should know before moving into entrepreneurship.
Pros
Independency
One of the most obvious advantages of being an entrepreneur is the independence that comes with it. You are your own boss. Sure it means a lot of added responsibility but it also means you get to manage how and when you work. An entrepreneur is free to make their own decisions whether it be about their personal or professional life. You fit into this role of natural leadership where not only do you get to manage your own work but also help guide other employees under them
Financial Earning
It is true that if done right an entrepreneur is able to earn much more compared to an employee. They will often have a large share of the business and choose where and how to allocate funds. On the other hand, if you may be working for someone else you are more likely to be restricted to a constant set of weekly or monthly payments. An entrepreneur has the potential to earn as much as they want to depending on how well they manage their business.
New Opportunities
An employee is more likely to have to be stuck with doing the same monotonous work over and over again. This is not the case for an entrepreneur who has to deal with new situations and opportunities on a daily basis. They have to constantly be innovative with their ideas to make sure that their business not only survives but also thrives and earns a profit. Networking and having to constantly make and interact with new business contacts also means that you are able to socialize and build better contacts amongst the industry. It gives you a new chance to take part in experiences you may not have expected yourself to engage in.
Cons
Risk vs Reward
Though being an entrepreneur allows you to earn a lot more, starting up a business means that you don’t have a way to tell if you will suffer financial loss or gain. Being an entrepreneur means that you are taking a lot more risk. The first few years of a business are often very unstable and businesses are much more focused on making the business survive rather than earning profit. This does mean that the business is more likely to suffer financial loss in the first few years and afterward eventually start gaining profit.
Working Hours
Being your own boss may sound appealing but it is not always so. Though you are in control of your resources and how you allocate them and also your working hours since you are in control of all the operations of the business and oversee all the work that happens in the business it also means that you have to set out time for yourself to organize and manage the business. This means that working hours are often long and time-consuming. Many businesses often start out with the owner and the owner alone, the business needs to have enough capital for it to eventually start hiring employees. Seeing as it usually starts out as a one-man job, work can be very stressful and time-consuming.