You’re an innovator with an exciting business idea. But can you stomach the journey to turn it into a business?
Like any career path, entrepreneurship presents advantages and disadvantages. Compared to traditional jobs, founders tend to experience more of a rollercoaster of highs and lows: Many aspiring entrepreneurs face significant challenges including unexpected setbacks and a low initial salary, but they may also enjoy the freedom of creating their own companies while chasing their dream and, theoretically, unlimited financial success.
Let’s explore the several pros and cons of being an entrepreneur, with insights from Becca Millstein, cofounder and CEO of premium tinned seafood company Fishwife.
Pros of entrepreneurship
- Limitless potential
- Deep relationships
- Job creation and community impact
- Design your own job
- Lean into your passions
The many benefits of launching your own entrepreneurial venture include:
Limitless potential
Entrepreneurship, and your company, can be anything you want them to be. You’re no longer hemmed in by a corporate promotion structure or “the way things are done.” Your new business could be a side hustle, one of several income streams, or an all-consuming 80 working hours per-week venture. Your financial goal could be supplemental income or an exit via acquisition.
“By far my favorite thing about entrepreneurship is the feeling of limitless potential,” says Becca. “In working for a corporation I felt I had a real ceiling over my head. Now I have the ability, autonomy, and power to bring any of my dreams to life. If my team and I are willing to work hard, I truly believe we can make anything happen.”
Deep relationships
Startup life can be a crucible, and the relationships forged in that fire may become some of your strongest friendships. After all, you’ll likely end up celebrating huge wins and battling rough lows alongside the people who join you on your journey.
“The depth of the relationships you build when you’re running a business is hard to describe fully,” Becca says. “You go through so much with people, and we really care about each other. You face challenges together, you overcome them together, and you win together.”
Job creation and community impact
Small business owners sometimes create not only a company, but also a mini ecosystem: They can end up having a tremendous effect on their employees, clients, customers, and suppliers. Becca says one of her favorite aspects of entrepreneurship is the opportunity to have a positive impact on her immediate team and the wider industry.
“I’m so grateful to be responsible for employing people, and hopefully providing an impactful, wonderful work experience for them,” Becca says. “It’s a true privilege.”
Fishwife also plays a crucial role in the business plan for several canneries in the Pacific Northwest, which Becca sees as a humbling and exciting part of business ownership. “For some of these canneries, Fishwife is a huge percentage of their business,” Becca adds. “They can hire more people and grow their own companies, which feels awesome.”
Design your own job
As a business owner, you may have the freedom to decide which areas suit you best, especially once you can hire contractors or employees to take on other roles in your company. For example, maybe you enjoy the invention and innovation, but execution logistics bore you. As your business grows, you might delegate tasks to team members or third-party agencies with complementary skills.
"The most incredible thing about being a founder is that your imperative is basically: Do the jobs you’re good at,” Becca says. “You’re supposed to delegate the rest to people who are way better at that particular skill than you are.”
Lean into your passion
Many businesses are born of their founders’ passion points. And when you have an abiding love for your company and mission, it helps keep you inspired and motivated through the challenging times.
“I can’t imagine working this hard and staying this driven about something I wasn’t totally passionate about,” Becca says. “In my opinion, you have to be completely obsessed with your idea and with your company.”
Cons of entrepreneurship
For all the possible benefits of entrepreneurship, there are also several potential drawbacks. These cons certainly don’t have to be dream killers—but entrepreneurs should be aware of the challenges and have the skills to mitigate them. These include:
Risk
Entrepreneurship and risk-taking go hand in hand. When you create and operate your own company, there are simply no guarantees.
“You don’t have a guarantee of salary or even that you’ll have a successful business,” Becca says. “It’s a hugely financially risky proposition.”
It’s essential to walk into entrepreneurship with clear-eyed acceptance of this risk. Financial preparedness is also key: It can be easier to walk away from traditional employment and pursue your own venture if you’ve set aside a savings fund to cover your expenses for several months. Or, you might consider launching your business as a side gig to start.
Little or no pay to start
Even the fortunate founders who find business success early might need to hold off on paying themselves. “When you get bigger, or get to the point of raising venture capital, you can usually start paying yourself a more reasonable salary,” Becca says. “But when you’re early on and bootstrapping, you’re making so, so little money.”
Take a hard look at whether this is something you can afford and are willing to do. Perhaps you need to wait and build up more savings before launching your company. You might also consider ways to defray your cost of living.
No defined path
This is the flip side of designing your own job. Forging your own path can be exhilarating but also nerve-wracking. Traditional jobs are far more predictable: You execute against a job description and have at least a loose guideline for moving up the ladder.
With entrepreneurship, you have to shape your day-to-day work activities and define your own metrics of success. Some people struggle to structure their time and prioritize, especially when wearing the myriad hats that founders often wear. It’s a beautiful thing to be unfettered from the confines of a well-defined job, but it’s up to you to make the most of your time.
Long work hours and limited social life
“You have to be prepared to work insanely, insanely hard—like you’re in medical school or similar,” Becca says. “That’s just part of the deal as a founder; it will take over almost your whole life."
Aspiring entrepreneurs should be prepared to work long days, including on weekends and holidays, if it’s necessary. Those long work hours could cut into your personal time; for example, Becca sees her fiance only about twice during the week.
“We both wish we could hang out more, but you have to sacrifice things about your personal life,” Becca says.
Setting reasonable boundaries may help you maintain relationships, while still putting in the time to build your business. Perhaps you can sign off every Thursday at 4 p.m. and spend those evenings calling out-of-town family, meeting friends for a weekly dinner, or taking some time for self-care to manage stress.
Becca finds friendship and social connection with her cofounders and colleagues offsets some of the impact her job has on her personal life.
“My team cares about the company as much as I do, so I really don’t have the loneliness that many entrepreneurs talk about,” Becca says. “I’ve had best friends and founder peers from day one of Fishwife, and we’re constantly in communication. I would truly perish without them.”
Setbacks
Failure is a part of success, especially in entrepreneurship. “Challenges aren’t the exception; they are the rule. You have to embrace that,” Becca says.
When you begin your entrepreneurial journey with the mindset that setbacks are an inherent part of the job, you’ll avoid the emotional pitfalls of viewing challenges as unexpected or a sign that you’re failing. It’s why successful entrepreneurs must embrace uncertainty, become adaptable, and remain resilient as they move along to the next challenge.
“Whether you compartmentalize or simply develop a thick skin, you need to find a way to get over things really quickly,” Becca says. “Hard times and hard conversations are inevitable, so you need to get comfortable with them.”
Pros and cons of being an entrepreneur FAQ
Why would someone want to pursue entrepreneurship?
Entrepreneurship comes with many possible benefits including limitless potential, job creation, and pursuing your passions.
What are the risks of entrepreneurship?
Entrepreneurship has many challenges, like low pay and long hours, but the major risk is existential: There are no guarantees that you or your company will succeed.
How can you become an entrepreneur?
Entrepreneurship journeys vary depending on the individual, their circumstances, and the business they’re building, but anyone with an idea and the will to pursue it can work toward becoming an entrepreneur. Aspiring entrepreneurs need vision, passion, confidence, resilience, and creative problem-solving skills, to weather the challenges they’re going to face.
