A lot of individuals tend to mistake one for the other, in this article we’re going to be showing you the differences between being an Entrepreneur and being Self Employed
DIFFERENCE BETWEEN SELF EMPLOYMENT AND ENTREPRENEURSHIP
- Self employment typically involves working as an individual .
1a. Entrepreneurship involves creating and growing a business that can employ others.
- Self employed individuals may work on a smaller scale.
2a.Entrepreneurs have the potentials to scale their businesses and create larger operations.
- Self employment may involve lower financials risk.
3a .Entrepreneurs often involves developing new ideas and creating innovation solutions.
*In conclusion, both can be rewarding ways to make a living, depending on one’s interests, skills and goals.
BENEFITS OF ENTREPRENEURSHIP
- Flexibility: Entrepreneurs have the freedom to set their own schedules and work hours, which can be especially beneficial for those who need to balance work with other responsibility.
- Financial rewards: Entrepreneurs have the potential to earn more money than they would working for someone else.
- Independence: Entrepreneurs are their own boss and have complete control over their business.
- Personal growth: Starting aa business can be great way to learn new skills and gain experience in areas like marketing, finance and management.
- Innovation: They are often driven by a desire to create something new or improve upon existing products or services.
- Job creation: They create jobs not only for themselves but also for others.
- Social impact: They can use their business as platform for social change by creating products or service that address social or environmental issues.
THE CHALLENGES OF ENTREPRENEURSHIP
1. Financial uncertainty: Starting a business can be expensive, and it may take some time before you start generating money
2. Lack of experience: Many entrepreneurs are new to the business world and may not have experience in the areas like marketing, finance, or management. This lack of experience can make it difficult to make informed decisions and navigate the challenges of running a business.
3. Competition: Entrepreneurs often face stiff competition from other businesses in their industry. It can be challenging to differentiate your business from others and attract customers.
4. Time management: Entrepreneurs often have to wear many hats and juggle multiple responsibilities which can make it difficult to manage their time effectively.
5. Risk management: Starting a business involves taking risks and entrepreneurs need to be able to manage those risks effectively.
6. Marketing: Marketing is an essential for any business, but it can be challenging for entrepreneurs who may not have experience in this area.
7. Hiring employees: As business grows, entrepreneurs may need to hire employees to help them manage their operations.
BENEFITS OF SELF EMPLOYMENT
1: Control: Owning your own business provides you with full control over every aspect of your company and allows you to structure your work environment the way you want it.
2: Passion: Self employment allows you to engage in work that interest you, you have the opportunity to turn your passion, hobby, and strengths into business.
3: Flexibility: Being self employed allows you to create your own schedule and decides when and how much you work.
4: Variety: One of the advantages of self employment is experiencing more variety in your day to day routine.
5: Independence: Being self employed means that you are your own boss and do not have to answers to anyone else.
6: Personal growth: Self employment can be a great way to develop new skills, learn about different industries and grow as an individuals.
THE CHALLENGES OF SELF EMPLOYMENT
1. Unpredictable income: Unlike traditional employment, self employed individuals do not have a guaranteed income.
2: Lack of employee benefits: Self employed individual do not receive employee benefits such as sick pay, holiday pay, or health insurance.
3:Potentials for loss : Self employed individuals are responsible for their business expenses out of pocket and may face unlimited liability.
4. Long working hours: Self employed individuals often work long hours to ensure the success of their business.
5. More paperworks: Self employed individuals are responsible for keeping track of their finances and filling taxes on their own.
NOTE: Its important to know that these challenges/risks can be managed carefully when you plan and prepare a budget that you can use in managing your finances, purchases in other to protect yourself from liability.