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Employees do not take the same risk as owners/founders. If a startup fails: Founder loses two years, his life savings, and gets paid nothing. Employee loses
by jlawson 6y ago
Employees do not take the same risk as owners/founders.
If a startup fails:
Founder loses two years, his life savings, and gets paid nothing.
Employee loses two years, keeps his life savings, and gets paid salary for that time.
Completely different risk propositions.
- toyg 6y agoOwners can (and do) draw a salary in the same way as employees, and don’t lose any life saving they have not invested, same as employees. If the business die they end up without a source of income, same as employees. If the business succeeds they reap much bigger rewards than employees. I should know, I was one.