Entrepreneur vs. Employee: Why Entrepreneurship Might Be Safer Than You Think

I recently posted a summary of the book “Antifragile” by Nassim Nicholas Taleb.

It’s an excellent book and I recommend you read the whole thing. You can get it here: https://amzn.to/3xjmjuq

One idea in the book that I want to expand on is about job security and the perceived risk of entrepreneurship.

I consider myself an entrepreneur, and although I am not monetarily rich, I have succeeded in accomplishing my original reason for becoming an entrepreneur, which was to be able to travel and live anywhere in the world.

During my travels, I meet a lot of people who wish they could do what I do. Of course they could, anyone could. I’m not special or gifted by any means. The difference is that I am willing to take the risk of not having a steady paycheck.

But is being an entrepreneur really riskier?

Honestly, I think being an employee is far more risky for most people.

The first risk is financial.

When the financial world collapses, as it does from time to time, businesses go bankrupt. The entrepreneur loses his business and all the employees lose their jobs.

However, thanks to all the skills the entrepreneur learned while building her successful business, she (or he) will be much more resilient in starting fresh. Even if the entrepreneur needs to get a job flipping burgers until starting the next business, the entrepreneurial mindset will carry them until they get back on their feet.

On the flip side, the highly skilled employee may find it tough to find another job in his or her field of expertise, especially when the financial world is in a rut. Skilled professionals also often have a harder time taking on jobs they believe are below them. They also find it harder to adapt to such jobs since they don’t have a varied skill set.

Another point on the financial side is the actual accumulation and holding of wealth. A savvy entrepreneur knows how to keep down costs and have her money work for her. If the business was financially successful then hopefully the entrepreneur was able to build up personal wealth, stay relatively debt free, and transfer the idea of cost cutting from business into her personal life.

The professional employee may also be money-wise, but in comparison to the average entrepreneur is probably more likely to be in large debt with a mortgage, a car loan, and credit cards.

The second risk is the risk of not living the life you truly want.

Assuming you know what type of life you want, the entrepreneur has a greater ability to pivot towards that dream than the professional employee. This is especially true when the dream changes, as it may do several times during a lifetime.

Being dependent on the “steady and secure” job often puts you in a rut. It may be your dream job when you first start your career but who knows how long that will last.

Thankfully, it is never too late to pivot, and although you may not be ready to make the switch right now, that doesn’t mean you can’t in the future.

There is also a third option which kind of straddles the middle road between the entrepreneur and the worker: the freelancer.

Being a freelancer with a steady gig can give you that job security while gaining the skills to run a business. Then, when you get your next big idea, you will be more equipped to branch out and capitalize on it.