Entrepreneurial Advantage Starting One\'s Own

Entrepreneurial Advantage

Starting one's own business or working for somebody else, notably a large organization with financial and personal benefits, is a dilemma many of us face throughout one's working life. This paper will aim to objectively analyze some of the advantages and disadvantages that a working individual faces in each case. The conclusion may show that being an entrepreneur holds an extra asset as compared to working for someone else and that starting a business is a personally and financially rewarding venture.

The first important advantage of entrepreneurship we should mention (and the order has nothing to do with the relevance of each argument) is the fact that being one's boss is also equivalent with designing your own life and schedule around the activity that you have set our to perform. This means that you may decide that this Wednesday you will take off and spend in a library for documentation or that a certain day of the week will be spend team building in a pub. You are the boss and you make the rules. These are your rules and the only responsibility you carry is towards your employees and towards yourself as a person and as a business person.

Deriving from this, we may draw out the relevancy of following one's dream and passion and putting a lot of hard work into achieving it. No matter what people may say, working with passion is often something that is more important than the person's skills or aptitudes. Your own business will be like your own car or a personal object you care about: you will be careful not to break it and you will protect it against any adversities that may appear. For a business, it is probably not even important in the beginning whether or not your venture is making a profit. You will be more likely to stick with it and attempt to pull it through tough times rather than when you are in a position you don't like at a company. And this because you feel you have a responsibility towards something you have created, an ambition to see it pull through.

A third advantage is the financial aspect. No matter how hard you work in a company and no matter how much you produce, you will always be limited by the amount of money your respective position pays. If you are a junior consultant, you will never be paid the amount a senior consultant gets paid, no matter how much more work you do.

On the other hand, being one's own boss means that there is no financial limitation (of course, this is to be discussed. People may say that one is limited by the actual performances the company obtains). As an entrepreneur, you can use your knowledge and imagination to produce as much as you are able to or the market allows you to at a certain time or other.

This brings me to a somewhat different aspect of the financial advantage worth mentioning when referring to private entrepreneurship: you will be the person profiting entirely from the work you perform. This means that you will be in charge of distributing part of the revenues to the employees, but that you will be enjoying the actual results of your work.

On the other hand, we should mention some of the disadvantages of being one's own boss. First of all, there is no financial safety or not in the way one has at a company that he works for. Indeed, any financial burden and any significant change in the external environment factors that may affect the company will have full reverberations on the personal budget. 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.