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  You become wise when you can look across three generations, understand them all, and defend each of them independently.  Allan Bukusi

Sunday, March 8, 2020

Employment and Enterprise are the same thing!


Employment and enterprise are the same thing!

I have spent many years trying to help employees come to an understanding that employment and enterprise are the same thing. No, I am not about to give up on this quest because the more employees we have who are able to grasp this concept, the more wealthier people we will have in society.

Unfortunately, many employees firmly believe that they are not in enterprise and therefore never benefit from the wisdom they could learn from the enterprises they work in. Let me clarify five major similarities between an entrepreneur (employer) and an employee.

  1. Both are human beings. There is no special genetic code that makes one different from the other. They may have different gifts and talents, but there is no saying that one cannot take up the role of the other.
  2. They work together. Whilst an entrepreneur may work alone in the beginning, he soon realizes that he can only expand the business if he employs other people to do more work. In other words, entrepreneurs rely on employees with the capacity to create wealth to expand their business.
  3. Both work! An employee who does not apply him or herself to the job is unlikely to last in that job for a very long time. Similarly, and entrepreneur who does not put in his time cannot expect the enterprise to thrive.
  4. Both earn an income. The operative word here is “earn”. The capacity to “earn” is an entrepreneurial competence.
  5. Both aim to make a profit. Entrepreneurs need to make a profit to stay in business. Employees need an income to create wealth.   
The only significant difference between an entrepreneur and an employee is clearly observable in number five. Entrepreneurs are very focused on making a profit and creating wealth for themselves and their families. Employees, on the other hand, are only desperate to make enough money to pay the bills at the end of the month! Both usually achieve their goals.

An entrepreneur is acutely aware of the capital and the energy he must put into the business to receive a return (profit). Unfortunately, not many employees are aware of the capital and the energy they have put in to receive an income at the end of the month. While the entrepreneur uses his capital to accumulate his profits, the unwise employee uses his salary to defray his expenses. He does not have the sense to save, profit or create wealth from his income. The wise employee treats his income as capital. The foolish employee consumes all his income!     




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