In many ways, we may assert that the personal and company budget, in the case of a fully owned private entrepreneurship, is often one and the same, especially when it comes to expenses: company expenses are equivalent to personal expenses. Without the large resources in a company or organization, it is often tougher to deal with market crisis. For example, if the demand for the product you are commercializing suddenly drops, you are only a few feet away from going bankrupt, unless you find the financial resources to support you through the crisis.

Another disadvantage we should mention is the extra responsibility in an entrepreneurship. Here, you are not only responsible for yourself and for the tasks you are performing, but also for an entire set of different others things, ranging from the well-being of your employees to the image your company has in the business arena. This seems only natural, because all these have final reverberations in the profit you will be calculating at the end of the financial period.

If we refer to working for somebody else, it is clear that the advantages and disadvantages are the exact opposites of those mentioned previously. The main advantage is the financial (and not only) security that one has. However, we need to take a close look at this statement and evaluate whether it is entirely true. There are often cases when being fired means you end up more or less in the same financial bankruptcy you may have been as an entrepreneur.

On the other hand, let us only think of some of the burdens of being employed by someone else. First of all, you have a boss who not only tells...

Second of all, you have to put up with all sort of nasty colleagues, who are generally vicious in achieving higher positions or a better salary and will probably stop at little in achieving this. Third of all, any complaints you may have related to the two things previously mentioned have to be kept quiet, because you never know who will go telling the director. You may hate the climate in which you work in, you may hate the things you do and you may even become less proud of the salary you have after the conversation you have had with your friend, who is his own boss.
Being your own boss means that you never have to answer to anybody else and that you can take responsibility for all actions that you have helped produce. Being your own boss will also give the satisfaction of exploiting your imagination and achieving something from it, something palpable as a creation.

One of the essential principles in economics states that generally the return of an action is equal to the risk you take in achieving that respective action. To a larger scale, it is the same here. Taking the chance and risk of being on your own can certainly mean failure, but the prospective personal ad financial rewards are so large that may cover the potential risk.

Bibliography

1. Patty Tascarella C.(1995, Oct) Pittsburgh From employee to entrepreneur. Business Times, Oct 30, 1995 v15 n13 p. 15(1).

2. The America's Intelligence Wire C. (2004, March) it's a good time to be an entrepreneur. Business Times, Oct 30, 1995 v15 n13 p. 15(1).