It’s a tough question to answer, because each side of the argument has valid points that seem to cancel each other out. On one hand, you have entrepreneur-turned-employee Jim Collins, who says that entrepreneurs can often earn more than employees because they take full responsibility for their success and failures rather than passing blame on to their companies.
The answer isn’t always clear
It depends on the type of business, how long they’ve been in the workforce and other factors that can’t be generalized by company, but in general, the answer is yes. Entrepreneurship is one of those things where you get out what you put in; if you work hard and take risks, then chances are good that you’ll earn more as an entrepreneur than working for someone else.
It depends on the industry
The answer to the question of whether or not an entrepreneur makes more money than an employee is difficult because there are many factors that go into it. Many people believe that starting your own business means you’re going to be richer, but in reality, it may depend on what industry you’re in. For example, someone who has their own restaurant will likely make less money than the owner of the fast food chain down the street because they don’t have as many customers and thus less revenue for them to profit off of.
Location also plays a role
The short answer is, yes, most likely they do. But it really depends on who you are and what you’re doing. Let’s break it down:
First, there are many different ways to measure success–financial success is just one of them– so it is difficult to definitively say that entrepreneurialism always leads to better outcomes for everyone involved.
The amount of experience an entrepreneur has can make a difference
It can be hard to say if an entrepreneur will make more money than an employee because it depends on the experience level of the entrepreneur and what type of work they are doing. If someone is just getting started, it is unlikely that they will make as much as a seasoned business person who has been in the field for many years.
The bottom line
It depends on what type of entrepreneurial venture you’re talking about, but in general, people who are self-employed do tend to earn more money than those who work for others. Of course, being self-employed also means there are many other factors that come into play and can affect your earnings–including risk tolerance, how much time you want or need to spend working, and whether you have any outside income sources that don’t depend on your business’s success.
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