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Risks Taken: What kind of risks did the business owner take? Sometimes, taking on too many risks or not
managing them well can lead to problems and eventual closure.
By looking at these factors, we can better understand why some businesses succeed and others don’t.
Wage Employment
Wage employment means working for someone else and getting paid a fixed amount of money, usually
called a salary or wage. When you have a wage job, you work for a company or organisation, and they pay
you regularly, like every week or month. Your job will have specific duties and responsibilities that you need
to follow, and you usually work set hours each day.
In wage employment, you might also get extra benefits, such as health insurance or vacation time, depending
on the company. One of the advantages of wage employment is that you don’t have to worry about the
financial risks of the business—your income is steady and not directly affected by the company’s profits or
losses. This kind of work provides stability and predictability in your earnings and job role.
Difference between Wage Employment and Entrepreneurship
The differences between wage employment and entrepreneurship are as follows:
Aspect Wage Employment Entrepreneurship
Income Fixed salary or wage, regularly Income depends on business success
Job Role Specific tasks assigned by the Runs the whole business and makes all decisions
employer
Work Hours Set by the employer, usually fixed Flexible, depending on business needs
Responsibilities Defined by the employer Includes all aspects of running the business
Financial Risks None, income is stable High, as income can vary based on business
performance
Business Decisions Made by the employer Made by the entrepreneur
Job Security Typically more stable Less predictable, depends on business success
Control Over Work Limited to specific tasks Complete control over all aspects of the business
Benefits of Entrepreneurship
The benefits of being an entrepreneur are as follows:
Follow Your Passion: Entrepreneurship lets you start a business based on what you love doing. You can
turn your hobbies or skills into a business that you enjoy.
Empower Yourself: As an entrepreneur, you are your own boss. You get to choose what kind of work you
want to do and how you want to do it, instead of working for someone else.
Control Your Earnings: You decide how much money you want to make and how you want to make it.
Your income depends on how well you manage your business.
Higher Risks, Higher Rewards: Although running a business comes with risks, it also offers the chance to
make more money. Often, the bigger the risk you take, the greater the potential profit. You get to choose
how much risk you are willing to take.
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