Employee vs. Entrepreneur

Monthly Income

At one point in your life, you will have to choose a career path. You might remember the time when you were given career assessment tests in school for you to have an idea of the career you want to pursue in the future. Either way, you can have your own career by being an employee to a company or being the boss of your own company. These two are literally opposite ends of the spectrum. But choosing to become one has its own advantages and disadvantages. How do you differentiate the two? Which one is better?


An employee is someone who is hired by a company to render his or her service for the benefit of the business. When you are an employee, you can either sell the goods of the company or render office work. Your income is called wage and it is regular. You have fixed working hours every day. You are entitled to leave credits and other company benefits. The most rewarding part of being an employee is you get paid regularly but you are not responsible for the decision making aspect of the company. You don’t need to interfere or worry with how other people are performing their jobs. You will have regular evaluation and can be subject for promotion which can give you a better working opportunity.

On the other hand, being an employee has its own disadvantages. You can be dependent on your job to provide for your family. Also, your income is limited since it is fixed. You also have limited development in your career because you only get to perform a portion of the whole process in a company. Lastly, there is no job security. Your employer can hire someone better if he thinks you are not fitted for the job. Being an employee will not give you a guaranteed security for your job.


Someone who manages his own business is called an entrepreneur. Unlike an employee, being an entrepreneur gives you flexible working hours since you are the owner. Your income is called profits. You are independent and can affect the decision making process. You can also have career growth because you can explore many things and learn from them. Entrepreneurs are often out networking and making new business contacts and opportunities. This means they are the creators of their own destinies when it comes to the financial aspects of their lives.

While being an entrepreneur can bring you career growth, it can also give you a lot of stress. Your decision making can affect everyone because they depend on you. Also, you can have high profits or low profits. Being an entrepreneur is also an investment since it involves money. If you mismanaged your business, you may have to apply for a loan or worse, go bankrupt. Lastly, an entrepreneur bears all the risks and rewards of having a business.

Whatever choice you make, always remember to excel in what you pick. Be the best employee in your company. Be the best entrepreneur. In that way, you can be successful in your chosen path of your career.