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A trade or a job, which is better for me?

Trade or business? - A question that occupies the minds of many of us.

As children, we dreamed that "when I grow up, I will be a fireman, a pilot, a doctor, a garbage collector ...". But childhood dreams have passed and adult reality has set in. With it came the first serious decision - where to go to school? And when we thought that after graduation we can easily handle all the obstacles, we were faced with a choice - get a job?, start a business?, what to do next?

Surely the preceding words have reminded you of your own story. Whether you are happy with your choice or not is a question that everyone has to answer for themselves. Today, as in the past, many people are dealing with this question. Well, let's take a look at what it means to be an employee and what it means to be a sole trader, what are the pros and what are the cons of each status.

Being an employee means:

  • have fixed working hours, have a stable income,
  • have social security benefits such as cash benefits during incapacity for work,
  • take advantage of various benefits provided by the employer, such as a contribution from the social fund for meals, a contribution for services used for the regeneration of the workforce, a contribution for transport to and from work, a contribution for various types of social assistance from the employer, a contribution for recreation, a contribution for supplementary pension savings,
  • other benefits include, for example, a company car, a company phone and a PC, which in some cases are also provided by the employer for private use.

But being an employee also means:

  • accept slow career growth,
  • accept the corporate hierarchy - i.e. having a line manager,
  • the need to plan your leave, and to be aware that your employer has the right to determine when you take your leave,
  • have no affect on the amount of the tax burden,
  • have less opportunity for self-fulfilment.
Let's take a look at what it means to be an entrepreneur

Being a sole trader means:

  • do work that fulfils me and that I enjoy,
  • not having any supervisor, be the master of your time,
  • have the possibility of a higher income and thus a more prestigious position in their surroundings,
  • work from home (if the nature of the work allows it),
  • regulate the level of the tax burden and your income,
  • creating your own working environment,
  • have the opportunity for self-fulfilment.

But being a sole trader also means:

  • solve all tasks and problems and be accountable for them,
  • the need for an initial investment in the business (the amount depends on the nature of the work),
  • have fluctuating, uncertain income and associated stressful situations,
  • bear the full risk of the business - failure,
  • being an economist, lawyer, accountant, manager, marketing specialist and often a worker in one person,
  • not being paid overtime and often being a slave to your time,
  • manage competition, customer behaviour, business environment,
  • pay contributions even in a bad year, but according to your income in a year when you did much better,
  • more complex impacts in the case of work-related injuries and disability.
Whatever a person's decision, the most important thing is that he should feel good in his position, that his work should be fulfilling and, apart from material goods, should bring him joy and satisfaction.

Janka Jarošová, Back Office Specialist at the free debt counselling centre