Taking Pride in “Be Your Own Boss”

self-employed, entrepreneurship, entrepreneur, be your own boss
The trend is spreading so wide, but the impact is not felt yet, the “Be Your Own Boss” myth is the order of the day. But just as the industrial age created people who take pride in the white collar job that eventual seen as a big problem, the same might be happening to entrepreneurship in this information age.

My ministry is one of those who preach the gospel of entrepreneurship but not for those who are just in the system for the pride but those who contribute to the benefit of free enterprise. While some are not in it for the pride, they are self employed rather than being an entrepreneur, but they lack the understanding. I have met people who remain in business at the same place in the same cubic for more than 20 years and are not thinking otherwise. Will you call such an entrepreneur? In many instances I question the 99% business closure within 10 years and realised it’s not applicable to this set of people. At last I found out that this set of people only subject to it as sources of income till they cease to exist and they can do anything to protect rather than expand it.

When we are talking about expert on personal finance and entrepreneurship, there is no way we can skip Robert Kiyosaki. His Cashflow Qaudrant spells it out easily.

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Image Credit: Richdad.com

He emphasis always in all his book and discussion that you have to move from the left side; the world for employees and self- employed to the right side; the world of Business Owners and Investors. In other word the alphabets in the cashflow quadrants signify;

E       -        Employee
S       -        Self-Employed
B       -        Business Owner
I        -        Investor

Indicating that, there is big difference between self-employment and business; being the subject matter of this article.

Difference between Entrepreneurship and Self-Employment
Entrepreneurship is an act of setting up a business or businesses taking up the effort and risk of providing and coordinating available resources with the aim of making profit. In a recent time entrepreneurship is being refer to by effort made towards transforming the world by solving big problems.

You may be asking, is self employment not about taking risk or solving problem in order to make money? Yes, but in a different way compare to entrepreneurship.

Self-employment is a status of working for oneself as a freelance, contract or own business instead of working for an employer.

There are lots of points in the definitions that differentiate entrepreneurship from self employment.

  1. A self-employed person believes there is no one smarter to handle the job, as a result, wants to be in control of everything. His absenteeism means the business can stop immediately or in a few days or months. This is directly opposite to what entrepreneur does. They look for smart people (team) who can get the job done without them and set a system around such activity but take responsibility for the outcome. 
  2. In term of risk, entrepreneur knows there is need to take a calculated risk for bigger profit negating the self-employed person ideology that lead to limitation of activities and expansion.
  3. Entrepreneur can do business with lots of people at the same time with team which is impossible for self-employed, although there might be employee but the presence is always required most of the time to get the job done.
  4. While entrepreneur can do business globally if the resources and willingness is there, self-employed can only do business locally.
  5. Self-employed person receive payment directly from clients and customer and pocket all the revenue with formality of preparation of account, while entrepreneur, apart from receiving salary where applicable only receive profit if available.
  6. Entrepreneurs build business that live longer than the founder since in most cases they only own part of the business but for self-employed the business they established fold immediately or few months or years after their demise.

Personally, I subject the concepts to the slogan “Who You Help?” If you are taking pride in been your own boss, how many people are you able to help with that status not as a philanthropist but as a job creator? Because that is what entrepreneurship is all about.

Real entrepreneurs don’t associate themselves to the status or concepts of be your own boss because they know they are more than that. The slogan is reserve and do intoxicate self-employed people.

Now that you are aware of the differences, there is one more thing you need to know before you quit your job because of the ecstasy of “be your on boss”. Whether you will become entrepreneur or remain self-employed, you need to know that, your beautiful idea does not guarantee success but your ability to provide, execute and manage your resources judiciously. And most importantly, you should be driven, passionate, savvy and ready to go extra mile.

There is nothing wrong in starting as self-employed but if your desire is to be financially free through your effort by creating job rather than taking it, you should try within a reasonable period to migrate from the left side to the right side as entrepreneur or investor using the Robert Kiyosaki cashflow Quadrant as a guide.

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