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• Wage Employment: It exists as a partnership between two entities : the employer and the employee. In this type of
employment, an employee receives compensation for his/her work in the form of wages or salary. It does not involve
risks and the amount paid is fixed with certain incentives irrespective whether an employer is having loss or profit
in his business. The continuity of the service in case of wage employment depends on the terms and conditions laid
down in the contract between the two parties, as well as the relationship between the employer and the employee.
Let us understand the difference between Wage Employment and Entrepreneurship
Factors Wage Employment Entrepreneurship
Nature of Work Individuals work for an employer or a Initiate and operate their own businesses.
company and receive a fixed wage or Responsible for their own profits and
salary in exchange of work done by losses.
them.
Risk and Responsibility The level of risk is comparatively lower Entrepreneurship involves a higher level of
with stable income and job security. risk-taking. It has uncertainties, financial
risks, and market fluctuations.
Income Structure Employees receive a regular and Entrepreneurs' income is often variable
predictable income in the form of and depends on the success of their
wages or salaries. business.
Job Security Employees typically enjoy job security Entrepreneurs face the risk of business
as long as they adhere to the terms failure, which may result in financial losses
and conditions of their employment and sometimes closing of the business.
contracts.
Work Structure Employees follow a predefined work Entrepreneurship involves diverse roles,
structure with assigned tasks and including marketing, finance, operations,
responsibilities. and strategic planning.
ENTREPRENEURSHIP DEVELOPMENT
Entrepreneurship development is the process of enhancing knowledge and improving skills of an entrepreneur
through structured training and classroom programs. Through this process, a person is equipped with the required
skills and knowledge needed for starting and running the enterprise. Hence, this will be a big effort in preparing new
entrepreneurs which will pave the way for a better economy and make the path for the creation of a developed society.
Entrepreneurial Development Programs have been designed and supported by the government of almost all countries
to develop entrepreneurial abilities among the interested people. These programs help them to identify, develop,
polish and strengthen their entrepreneurial skills so that they play their entrepreneurship role effectively and become
a successful entrepreneur.
Tick ( ) if you know this.
Innovation means doing something in a creative and different way.
Organisation plays an important role if a startup is launched at a large scale with a big investment.
An Entrepreneur is a person who invests his time, energy and money to initiate an exclusive idea
for a new venture.
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