WHY SHIFT FROM JOBS TO ENTREPRENEURSHIP
Introduction
In recent years I have heard a lot more people talking about opening a startup and running a business and when I hear them I used to wonder: why? Most of the startups and business went bankrupt before 5 years of their launch. A lot of money is required to start a business, There’s no fixed income, a lot more time and effort is needed that means less time with family and friends, no job security and the scariest thing is if you fail you are all alone in this cruel world.
All things made sense to me when I came across a very interesting rule called “The 90/10 rule of money” in a book called “Why the Rich are Getting Richer” by Robert Kiyosaki.
The 90/10 rule of money
There is a rule of money known as the 90/10 rule. That rule states that 10% of the people earn 90% of the money.
Q: How to become a part of those 10% people?
A: The good news is that with real financial education, almost everyone can be in the 10% who earn 90% of money.
Q: How to get real financial education?
A: My suggestion is to follow the writings of Robert Kiyosaki.
Q: What is the reason very few people have so much money?
A: Common people’s obsession with jobs.
INDIA’S OBSESSION WITH JOBS
“INDIAN PARENTS OBSESSION WITH JOBS IS DESTROYING THE GROWTH OF INDIA AS WELL AS CAREERS OF THE YOUTH.”
‘Itni mehnat kyun karte ho? Government job ke liye apply kardo. Less workload aur fixed salary, uske baad toh life set hi samjho!’
It’s high time Indian parents started respecting careers other than that of an engineer, doctor and sarkari naukri. Here’s why Indians glamorize these careers & why this needs to end.
When India got its independence in 1947, India was an under-developed country and mortality was very high. Life expectancy was low in 1950s and doctors were regarded as gods, especially to the uneducated. And they continued to do so for a long period of time. It’s no surprise that at the time, any parent would hope for their child to grow up to be a doctor.
It was the 1990s when India was finally liberalized. The industrial production grew rapidly and demand for engineering graduates peaked. For our parents’ generation, the two professions of engineering and medical sciences were proving to be the top-earning security-webs that were taking many families out of the Indian partition-induced poverty.
And the Mindset Continues…
Today most Indian parents are still in the 1980s, mentally at least. They believe what worked then will work now. I may be generalizing here, but most parents and students think that engineering is a place-holder degree. And one can do anything after that, depending on the interest and job-vacancy. Unfortunately, Indian companies have also seconded this, so Indian parents are not entirely to blame.
THE FOUR SECTORS OF PROFESSION
To understand better why the focus of people is shifting from jobs to entrepreneurship in recent years we need to understand why even after giving everything in your job 99% of us would never be the part of top 10%. All the various career options in the world can be categorised into 4 sectors for simplicity. The four sectors are: E, S, B and I.
E- Stands for employee.
S- Stands for self employed, small business or specialist such
as doctors, lawyers, real estate agent.
B- Stands for big business owner with 500 employees or
more.
I- Stands for investor, these are active investors and not passive investors.
For better understanding these sectors can be further divided into two categories based on similar income.
Category 1- E and S
Category 2- B and I
Now the biggest factor that separates the rich from the poor is taxes. You must be thinking that the people from category 2 must be paying highest in taxes isn’t it? Well here are the total percentages of taxes payed by different sectors:
E- 40%, S -50% to 60%, B -20% to 30%, I- 0% to 10%.
Consumers Vs Producers
Think of the E, S, B, I sectors in terms of consuming and producing. Someone in the E sector produces whatever they can produce themselves and consumes an equal amount. Someone in the S sector produces a little more (if they have some employees) and consumes a little less than they produce. Someone in the B or I sector, however, produces much more than they consume. In the B sector, they are creating hundreds or thousands of jobs and in the I sector they are producing energy, food and housing. They still only consume the same amount as someone in the E or S sector. The government encourages and rewards these activities through tax breaks because the producers stimulate the economy and produce the fuel, and housing that the rest of the citizens need to live happy, productive lives.
THE TRUTH
There are rich people in all four quadrants. These are many rich employees and self-employed specialists such as doctors, lawyers, sports stars and artists. In the E and S sectors there are both rich and poor people.
The richest people in the world live in the B and I sectors. There are no poor people in the B and I sector. The amount of wealth they have may vary, but no one is poor.
Q: So why do they pay the least in taxes if they are rich?
A: Because of the golden rule: “He who has the gold makes the rules”
I request all of the readers to please think about are they happy with their profession and if this the way they want to live for the rest of their lives.
CONCLUSION
As you must have understood by now that employees are just a tool used by the government and companies for the proper functioning of the society and their companies. Most of the employees can easily be replaced. Almost all of us aspire to be on the top of the world and are not commanded by others and only way to achieve this is to become the part of the top 10%. And the most viable career option we have to break into the Top 10% is to become a part of B and I sectors of the society that is to choose Entrepreneurship as our career.
To see some links where I took a bit of inspiration from, check out
· https://www.youtube.com/user/RDdotcom
· https://www.youtube.com/watch?v=abMQhaMdQu0
· https://careernuts.com/indian-parents-obsession-engineering-medical/
