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Ten (10) Differences Between The Employed and The Entrepreneur

For those that do not know their meanings, An employee is simply a person who works for another person or one who is employed by someone called an employer. A self employed is an entrepreneur or better put as the name implies, one who works for himself. In other words, he is his own boss. Below are ten (10) interesting differences that exist between the two and most likely why some folks say they can never work under anyone. Enjoy.

 

LEVEL OF FREEDOM:

Obviously the self employed folks, own their buisness and for this reason are free to move about at will. They are their own boss and so can resume and close work at their own convenient time. Most employees on the other hand, are given strict rules regarding time which limits their movement, they probably can only move about freely during their lunch breaks or at the close of work.

For a mother who has to pick her kids from school at a time that isn’t her break time? She’d find it tough or better still find a nanny, and we all know what recently happened to the kids that a new nanny gotten from OLX was brought to care for, really funny story.

Furthermore, Nigerians who are known to love attending functions and fall under the category of self employed folks always have smiles on their faces, as they are free to close up work and meet up with these activities at will, as opposed to the employees who have to take long protocols to gain permission to leave, which may not eventually be granted them. This seems like bondage to me and a lot of bankers today have this complain.

ACCESS TO CASH:

This is one of the reasons why many tend to start up businesses of their own because the self employed own and receive all the proceeds from the business, giving them liberty to spend it as and when needed. The employess however, don’t own the business and so they only receive the portion that is owed them, hence their access to cash is limited to when they are paid.

SAVING HABIT:

Ok, this is a plus for the employees, since they receive cash at the end of the month, they tend to be wary of what they spend their money on, in other words being an employee teaches you a kind of “Saving Habit” discouraging you from impulse buying and from being a debtor. This is not the case with the self employed folks. Since money comes in on a daily basis, those who aren’t disciplined likely become extravagant in their spending.

DECISION MAKING:

Decisions regarding location and other changes to be made in the business are taken sololy by the owner of the business. The employee depending on the decision is kept out of the decicion making process and he/she is only intimated with the conclusions reached.

INNOVATION, CREATIVITY AND INPUT:

Being self employed allows you to be creative, innovative and think out ideas that will make your business grow. As an employee, depending on the position, you live a “come”,”work” and “go” lifestyle, hindering you from enhancing your creative thinking skills.

BENEFITS:

This may be another plus for the employees because they receive numerous benefits especially during festive periods. But while they smile with lots of benefits their counterparts only enjoy much bonus when they make huge profit, and as most businesses are seasonal, there’s a possibility that they may not record any profit at some periods of the business. RISK BEARING: All the risks are borne by the self employed and he incurs many loses in the advent of a wrong move made. The employees have no problems here as any risks will be borne by the company they work for

DIVERSIFICATION:

This can be done with ease by the self employed, they can own chains of businesses and still monitor them all. It is almost impossible for an employee to diversify.

OPPORTUNITY TO EMPLOY OTHERS:

The self employed are potential employers of labour. As the business grows they will require more hands, thus enabling them to engage family, friends and neighbours to achieve greater results. Working as an employee does not come with this privilege and even if it is possible, the protocols involved are usually rigorous.

LIFE EMPLOYEMENT:

The employee remains employed as long as his services are required and can be retrenched at any time. For the self employed they are employed for life. The aforementioned are simply my perspectives on this matter, feel free to disagree or add yours in the comment section.