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Difference between Business ownership and Self employment

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Prime Dynamics, Mar 11, 2012.

  1. P

    Prime Dynamics JF-Expert Member

    Mar 11, 2012
    Joined: Dec 30, 2010
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    When I used to be employed, niliakikisha kwamba before I left my employer and join another, I was absolutely sure that the new employer will treat me better than the former. My new position could be senior or with more benefits than the former.

    Generally many employed people who leave their stable and well paying jobs to invest lead worse and miserable lives than when formally employed. Many regret quitting employment since they end up being self employed, working harder and earning less. Their high expectation of enjoying freedom and money that comes with success in business fades just after few months or years in business. Even if the venture is successful and profitable, many still feel empty and fatigued. This is why they seek in self employment what can only be found in owning a profitable business. In self employment, no matter how profitable the venture is, it will never give you coveted benefits such as freedom, total security, high growth potential and less stress. When you are self employed, you are technically an employee, but one with so many responsibilities ranging from administration, operations, fund raising, human resource management and all other functions of a business. Basically, this is very stressful with or without money. It becomes a nightmare when you have to work twice or thrice as much as you worked but earn less than you used to in employment. On the other side, when you start a business, which many people have successfully done while in employment, you don’t have to work there. You simply own it and establish systems to ensure that it can run without your involvement.

    Owning a successful business and not self employment is what will give you freedom, financial security and way to become wealthy. It is what many people go for, but end up in self employment, which has limited growth potential. You can only swallow what you can bite. But when you own a business, potential for growth is infinite. When it matures you can use its profits to start many more, unlike self employment where you must always be there. ukisogeza mguu tu umeumia! However, a self employed can become business owner through putting in place systems that ensure you don’t have to be present for things to run smoothly. You need to hire good staff and establish a clear chain of command so that your absence does not hurt the business.

    If you can’t afford to take a week, a month or two away from your business without disrupting its operations, then you are not a business person. You are simply employed by a terrible employer (who is wewe mwenyewe). A business that requires the proprietor to be present to manage its day to day operations is a form of self employment.
    Start thinking of how you can become a business owner to enjoy matunda ya enterprise.
  2. m

    moghaka JF-Expert Member

    Mar 12, 2012
    Joined: May 16, 2011
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    Absolutely true, l like the way you put it simple and clear, but the challenge is formulating cost-effective system,(skilled high committed at low cost as per income earned) and able to compete with self employed rivals (yeye na mke wake tu no sysem, no mfanyakazi) in the same market,,,... in short it depend to situation of the business you are operating and scale, core competencies, competitive advantages etc....
  3. WomanOfSubstance

    WomanOfSubstance JF-Expert Member

    Mar 12, 2012
    Joined: May 30, 2008
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    We need more such discussions so that more young people could take a cue and catapult their lives to greater heights instead of whining all the time.Financial freedom wont be attained if one is not free/independent to do what they like and what they can do.Employment wont give you that freedom!
    Many people think that the employer will turn around their lives, forgetting that an employer is an "extractor" and not a philanthropist.

    "The" question should be "How many people have the "ability to OWN a business" so that they can "extract" from others?
  4. Mkeshahoi

    Mkeshahoi JF-Expert Member

    Mar 12, 2012
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    Perfecto... just a hint... one needs to invest in viable business that will give him/her time to think ways to diversify it...
  5. Raia Fulani

    Raia Fulani JF-Expert Member

    Mar 12, 2012
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    bahati yako hapa mwishoni nimekuelewa. U need to be systematic to own a business, so to become an entrepreneur
  6. Chamoto

    Chamoto JF-Expert Member

    Mar 12, 2012
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    Simply put work ON a business not IN a business - Michael Gerber
  7. Ghost

    Ghost JF-Expert Member

    Mar 13, 2012
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    Spot on....But easier said than done!!