Cradle of Fish, on 21 July 2012 - 11:06 AM, said:
I think they take as big a risk as you would. Consider the fact that the workers in a small business are more affected by the overall performance of the business. Working for a small business means less job security, less benefits and depending on how well the business is doing, potentially less pay and worse hours. They might in fact lose everything if they are reliant on the wage and can't get another job if the business fails.
I have to disagree, building a business from the ground up, especially one that starts out with no employees, is like raising a child. The people who are employed later are like babysitters. It is a lot tougher losing your own child than losing a babysitting job.
I'm not discrediting the difficulties someone would experience if the place they work goes out of business...but it's more risky owning a business. Employers want to see that you've worked consistently for someone else without time spent unemployed... putting on the resume that you were unemployed for years because you had your own business can sometimes cause them not to want to hire you. (and conversely it can also cause them to respect you, depends on the interviewer) There is also significant risk in businesses that aren't incorporated, as if the business is sued they can go after the business owner and their personal property as well. Not to mention that if a business tanks, the person who started it usually has a lot of time and money in it that can't be recovered.