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But the business bears the risk of running into significant debt if things go bad, as an employee you don't take that risk. Often business owners have invested
by ryan-allen 16y ago
But the business bears the risk of running into significant debt if things go bad, as an employee you don't take that risk. Often business owners have invested significant capital in order to get things going, and they are not guaranteed a return on that investment.
- asmithmd1 16y agoI am not arguing anything about the risks the business owners is taking, I am saying taking a job is not the low-risk, low-reward option it used to be. Years ago there was an implicit agreement when taking a job: work here for 40 years and you will not get rich but at least you will always have a job. That agreement is gone. Work for one company until you are in your 50's and you will be "laid-off" and replaced with a younger worker. Many people still think starting business is high risk compared to working for a company, but over the past 20 years the risks have changed and no longer makes sense to bear all the risk of losing your job with none of the commensurate up side of owning a business.