Welcome to another article, this time on a topic that probably affects me personally more than anything else—entrepreneurship. Specifically, we’ll talk about why you should start a business in the first place, what it can bring you, but also about something that isn’t discussed much—the downsides that await you.
We’ll discuss what to expect if you’re just starting out, but I think even more seasoned entrepreneurs will certainly recognize themselves in my tips and agree with them.
So let’s get started.
Why do people start businesses in the first place?
Before we dive into the advantages and disadvantages themselves, let’s pause for a moment to consider an interesting fact. Entrepreneurship as such has existed for thousands of years—the first documented commercial transactions date back to ancient Mesopotamia, where people exchanged goods and services in markets around 3000 BC. Essentially, the desire to be independent and do business on one’s own has always been deeply rooted in people.
Entrepreneurship also has its own history in the Czech Republic. After the revolution in 1989, thousands of new companies and sole proprietorships began to emerge—people finally had the opportunity to do things their own way. And that boom continues to this day. According to data from the Czech Statistical Office, there are more than a million active sole traders in the Czech Republic. That means roughly one in ten Czechs runs a business. And that’s quite an impressive figure.
But let’s get to the heart of the matter.
Advantages of entrepreneurship
Independence
As a sole trader or business owner, you are your own boss. No one can fire you, and you have the freedom to decide what you will and won’t do. And that is crucial—because this very freedom to choose projects, clients, and the direction you want to take is often the driving force behind the success of your business. You don’t have to wait for approval from a superior or push your ideas through three levels of management. You simply make a decision and get going.
Incidentally, according to a FreshBooks survey, as many as 97% of respondents who started a business said they would never want to return to traditional employment. That is quite a telling figure.
Lifestyle
Having your own business gives you certain advantages in life that employees simply don’t have. Because you are your own boss, you can decide when you will and won’t work. If you want to spend more time on non-work activities, such as being with your family, you don’t have to ask anyone. You don’t have to request vacation time or explain why you need to leave early.
Likewise, if you want to, you can easily work from home. With today’s technology, it’s quite simple—all you need is a laptop, an internet connection, and a few good tools. I personally know many entrepreneurs who work from cafés, Bali, Thailand, or simply wherever they happen to be. And that is something a traditional nine-to-five job simply won’t allow you to do.
Financial rewards
Entrepreneurship naturally involves financial risk—we won’t pretend otherwise. But it also gives you the opportunity to earn really good money. You have the chance to earn far more than you would working for someone else. Your hard work is usually rewarded accordingly, and that reward is determined by no one but you.
Honestly—consider what the average monthly salary is in the Czech Republic. It is around 45,000 Czech koruna gross, but the median is several thousand lower. Many employees simply hit a ceiling they cannot break through, no matter what they do. No such ceiling exists in business. Your income directly reflects how much value you can create and, in my view, how much you can automate, especially at a time when AI is ubiquitous.
You’ll learn a lot
As a business owner, you will need to understand every aspect of running a business. And that is actually a huge advantage, even if it doesn’t seem like one at first glance. This may include accounting, management, dealing with people, marketing, or even programming.
Interestingly, according to a Babson College study, entrepreneurs learn faster and more effectively than their employed peers—simply because they have to. No one else will do it for you. And the skills you acquire in business are transferable virtually anywhere. Even if your business doesn’t work out (which, of course, happens quite often), you will come away with a skill set that is extremely valuable in the job market.
Freedom and satisfaction in life
As an entrepreneur, you can choose the field in which you will work. You can make full use of your abilities and knowledge and gain a certain sense of satisfaction from everything you accomplish—especially when the business is doing well. That feeling when you see something you built from scratch working and helping people—that is priceless.
Psychologists call this a “flow state”—a state of complete absorption in an activity, when time passes differently and you feel a sense of purpose. Entrepreneurs experience this state significantly more often than employees because they have direct control over what they do and why they do it.
Disadvantages of entrepreneurship
And now for the less pleasant part. Because it wouldn’t be fair to talk only about the advantages and pretend that entrepreneurship is a walk in the park.
Financial risk
Starting certain types of business can be financially demanding. This is especially true if you manufacture products, need to purchase goods for an online store, and so on. In that case, you will have to use your savings or perhaps banking products such as loans, overdrafts, and credit cards in order to get started.
And here is one statistic worth mentioning—according to various studies, roughly 60% of small businesses close within their first five years. That doesn’t mean you shouldn’t start a business, but it does mean you should be prepared for the possibility that not every idea will succeed on the first attempt. Most successful entrepreneurs have several failed attempts behind them before they truly succeed. I’m no different.
Stress
As a business owner, you essentially are the business. There are many things in business that can cause concern—competition, employees, bills, or customer issues, for example. As the business owner, you are responsible for all of these things.
And it isn’t just work-related stress. Entrepreneurship also affects your relationships, health, and overall well-being. According to a University of California study, entrepreneurs exhibit higher levels of anxiety and stress than the general population. On the other hand, they also report greater overall life satisfaction—the paradox of entrepreneurship.
A major time commitment
Honestly—people sometimes start businesses so they can have more free time, devote themselves to what they want to do, or spend more time with their families. Unfortunately, running a business takes an insane amount of time.
In theory, entrepreneurship gives you the option to take time off whenever you want, but in reality, you won’t be able to stay away from the business for very long. In practice, you are more likely to have far less free time than when working for someone else. The reality is that a 40-hour workweek is a complete fantasy and nonsense for most entrepreneurs.
It will also often be difficult to take a vacation, and it will frequently be interrupted—by phone calls, emails from customers and employees, and so on. And in recent years, taking a vacation has become much more difficult with all the new phones, tablets, and laptops, especially when you are constantly connected.
Incidentally, a Harvard Business Review study showed that the average entrepreneur works around 52 hours a week, with roughly one-third working more than 60 hours. And those are only the official figures—many entrepreneurs don’t even count the time spent thinking about the business, replying to messages in bed at night, or planning their next steps in the morning shower.
Unwanted responsibilities
If you have a new business, you are usually responsible for absolutely everything. For everything that needs to be done in the company. You may also be surprised by how many things you have to do that you may not even enjoy. These may include bookkeeping, communicating with government authorities, hiring or dismissing employees, and so on.
This is particularly pronounced in the Czech Republic—the bureaucracy surrounding business is relatively demanding compared with some other countries. Tax returns, VAT control statements, EET (although that was ultimately abolished—for now, as of 2026), GDPR, various record-keeping requirements... Simply put, administration that often distracts you from running the business itself.
So, should you start a business or not?
To sum it up—entrepreneurship has its advantages and disadvantages. Of course, it can also be done without unnecessary anxiety, stress, and substantial financial resources.
For example, we create SaaS software that, at least initially, I program myself, and it costs us nothing—apart from my time.
Honestly, thanks to this digital age, you really can run a business from anywhere in the world with nothing more than an internet connection and minimal costs. You can offer digital services or consulting, run an online store without holding any inventory (through dropshipping, for example), or create an online application that helps people. There are plenty of possibilities.
And one interesting fact to finish—did you know that some of the world’s largest companies were founded in a garage or a dorm room? Apple, Amazon, Google, Facebook—all of these giants began as small projects created by enthusiasts who had an idea and the courage to make it happen. And today? Today, they are companies worth trillions. Of course, not everyone will build the next Apple, but it shows that your starting conditions are not the most important thing—what matters is the idea, determination, and willingness to learn.
So make up your own mind, but in my opinion, the positives outweigh the negatives. Personally, I can’t imagine doing anything other than running an online business.
So I won’t keep you any longer—go for it!
