Business vs Employment

[asriloni]

An employee has limitation in how much he can earn by doing his job. Meanwhile, a business man can have unlimited income as long as his business is always crowded. It's the reason why an employee will never be rich.

If an employee can earn as much as a business do. So there would be no a minimum wage that became guarantee for an employee to get a minimum salary for their effort.

Let's say you get a job and you receive 3k bucks monthly. So it's gonna be last as long as you're still working there. Meanwhile, a business man can get like millions or billions sales from his business. So let's assume he get only 10% profit margin from his sales. It's still cosniderably big, very very big.

No doubt an employee still always getting stuck, and he get eaten by inflation.

[dezoel]

Even though most of the richest people in the world are from the business world, I have seen people that very rich that are working and earning salaries without owning businesses. There are multibillion dollars establishments that pay their employees very well to point that they are very rich, they can afford everything they ever want in their life. Let’s take footballers for example, they earn big money from salaries without owning businesses and they are rich.

If you are a CEO of a huge company, then you do not own a business yourself, and hell you may not even own any stock at all, but you would be able to actually make it worth something and that should be the most important thing.

I think that is the most important part of this and should not be all that complicated and we could be happily doing something like that and shouldn't be worried about it. I get that it may not look like we should be doing this in a different from this and should be happy about it. I get that it is not that simple but we need to realize it's very good decision.

[Finebone]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Their is nothing magical about this mate, because as a business owner, you earn by performance, like the numbers of goods and services that you were able to sell out, and you can even use a single day to make times ten to fifty of what a salary earner earns in a month, unlike salary earner that their take home salary are fixed, even if they are over used, or they did overnight. So you should not be surprised by it because anything that you are into that makes you to earn by performance, just know that you can easily get rich through that.

[Qhunman]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

I think it is because only few companies pay their employees very well. I'm saying this from experience in my country. They are not many companies who can afford to pay their staff big salaries like upto a million. it is rare to see someone who became a millionaire through salary in my country because only few jobs pay high salaries, employees who do not earn high salaries engage in multiple businesses because investing in business  is only possible means they might become millionaires and billionaires since they do not earn huge salaries.

[YOSHIE]

What are the reasons for this?

The reason is easy, employees only receive a monthly salary, nothing more, for example the monthly salary is $1000, all the needs there are, according to the employee's monthly calculations, only $200 is left, the rest is spent on necessities, a situation like this is felt by almost all employees in this world.
Meanwhile, business owners have monthly/annual profits. If their turnover is large, of course their profits will also be large. Long story short, in one year the company owner will become a billionaire.

So, if you want to become a billionaire you have to be an entrepreneur/business owner, don't be an employee.

[pawanjain]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

It's obvious that most people will say that business is what generates billionaires and that is true.
In some rare cases though there are some people who have become millionaires just as an employee at bigger tech firms.
Google, Meta, Apple etc... has had some early employees who got stock options and hence became millionaires later in life.
But that said, business is still the first and foremost option which generates many millionaires and billionaires.

[The Cryptovator]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Because a job has limited earnings, but a business doesn't have a limit of earnings. It doesn't matter what your salary is from your employer, but from the business, you can expand it. Because you can't join multiple companies, you have to focus on a single company for the fixed salary. That's the main reason why the world's biggest, richest person is a businessman. An employee can't come out from the comfort zone and can't take the risk.

If someone, an employee, could take the risk and succeed in his business, then he would probably become the richest person. It really depends on how he is doing business and how it has been expanding. Remember, investing and doing business aren't the same things. So don't expect to become the world's richest person by just investment. Everyone won't become Warren Buffett.

[Findingnemo]

An employee gets a fixed salary which is just a part of the total profits if the company is making profits but the whole thing goes to the one who invested and made it profitable. I am sure an employee contributes to the development of the company but the risk is minimal since he get salary whether the company is making profits or not while the one who owns take the risk.

That justifies why they get bigger cut and when they get bigger revenue then they are going to pile up with money compared to an employee.

[qurbanshah02]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

According to my and most people's views, business is more profitable than employment. It is not that employment is not right, but some people like jobs and consider them profitable. If you look at it, in business you get the reward of many tasks, as you are the owner yourself, even if there is some loss, you are not afraid of anyone, if you want, go to work, you get unlimited money, while in jobs you are limited to many things, as you can only do two holiday in a month, you have to reach on time, if there is any loss, your salary will be deducted, etc. Therefore, a person gets tired of jobs due to their limitations your considers doing business as the right decision, therefore business is preferred over jobs.

[Botnake]

Simply because when you're an employee, despite of your hard work and countless overtime, the rate of your salary still the same, while the productivity of the company continues and brings more income to the employer, and that could make the owner richer than ever, while leaving the employee tirelessly working.

That is why if you remain an employee forever, do not expect to get rich or become a millionaire. But expect your employer to be more richer. The only way you will create a big difference in your life is when you start getting out from your comfort zone and start your dream business, and who knows with proven passion and skills, your life after 5 or 10 years will completely change.

[Churchillvv]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Wealth creation doesn’t come from being a servant, only those who are served are the wealthy, so you have to create a system where people serve you and not you serving. That’s exactly why entrepreneurs are the most successful people because wealth can’t come from what someone pays you, they say big money never comes clean and clean money doesn’t come big . Clean money is the one you get paid by someone else and the dirty money is the one you decide what to pay yourself not what others decided.

[Rabata]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

The very simple and common reason is that an employee depends only on his monthly salary and his income is limited. And with limited income, there is no opportunity to do anything like that. If he is given some increment at the end of the year, it also becomes worthless due to inflation over time. With limited income, no one can ever participate in any additional work. But in the case of business, the matter is completely different. Because in that business, the owner works himself and also enjoys the fruits of the hard work of those whom he associates in his business. That is, the daily hours of a person who comes from business are more than those of an employee. For this reason, the amount of wealth will definitely increase through business.

Many employees have also become rich by doing jobs, those who have saved money for a long time and made good investments have also become rich, but the amount is definitely very negligible. In the normal sense, the amount of wealth is more among businessmen, one of the reasons is that there is no limit to the income in business.

[Zlantann]

Wealth creation doesn’t come from being a servant, only those who are served are the wealthy, so you have to create a system where people serve you and not you serving. That’s exactly why entrepreneurs are the most successful people because wealth can’t come from what someone pays you, they say big money never comes clean and clean money doesn’t come big . Clean money is the one you get paid by someone else and the dirty money is the one you decide what to pay yourself not what others decided.

I thought dirty money was related to fraud and other illegalities. While clean money comes from legal means like jobs and businesses. I never knew that there is a classification of money based on its sources but I still think that there are some profit business that make genuine profit so I can't call it dirty.

The reason why entrepreneurs earn more than workers is risk-taking. The search for funds through loans, personal savings, the sale of assets, and risking it in business. If the business fails, they risk going bankrupt. If it succeeds that could easily make you rich.

[tbterryboy]

It looks like you already answered your own question there OP. It is because it is hard to be rich by being an employee, so a former employee try their luck by doing a business and if they get lucky, then they are now rich. Not all are lucky to have a wealthy ancestor. So they can start with the basic like you said there> get study, get a job, save, and lastly, spin your luck in a business.

There are still that got rich only by working. That is if they got promoted a couple of times and now attained a higher position and a higher salary on their job. But these people usually invest their money too on other things, in order for them to earn more income.

[Cookdata]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Somethings are common sense and not because what, why and how but that's how it's supposed to work. There is no amount of work with a another person that will give you wealth even if it's a bigger unless you set aside your own business with the money you have earned while running your primary job. Working for another person is working fot your self to pay bills and be able to take care of yourself and that of your immediate family and friends if you care about them.

However, as you are giving much attention on working for another person is the same way you should talk about how hard it's to raise a business from nothing to a wealthy business. Let's be real for once, the fact that everyone says you should start your business to become a wealthy person doesn't mean it will always work out, you have 1% chance of success of going zero if you try a business you have never treid before, what makes the percentage depend on you as a factor.

[Shinpako09]

Because in business, you keep growing your money, while as an employee, you are mostly stuck with fixed wages. But there are still some high paying jobs that make people millionaires. If you’ve watched Daniel Mac, not all multimillionaires or billionaires come from old money. Some came from humble beginnings and later built a business empire. But not everyone has a knack for business. It’s not just about timing, location, or opportunity. If business is not for you, then it’s really not for you. That’s why some people prefer to stay as employees and just invest in stocks, crypto, and other assets instead.

[programmer3666]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Lots of workers out there, earn a fixed monthly salary, but business owners can keep growing their income if the business keeps expanding. That is why many rich people usually become wealthy through business and investments instead of only depending on salary. Imagine someone working in a restaurant and getting paid every month, while the restaurant owner makes money from all the customers and can even open more branches. With time, the owner has a bigger chance of becoming very rich. But jobs are still important because many people use their salary to save money, learn skills and later start their own business.

[mirakal]

Employees rarely acquire substantial wealth because the amount of their income is only tied to fixed hours, and no matter how they are seen valuable in their own jobs, the rate of their income is only limited. I am speaking from a minimal wage earner, but if you are working as an executive of a big company, the path to get rich and make more of wealth is always certain.

However, if you really aim to elevate the current status of your life, be a business owner and be the boss of your own. Lack of asset ownership is a big barrier towards wealth acquisition, that's why you have to improve what you have and start adopting the rich mindset.