Better to be an employee or an entrepreneur in Canada?
To all the Canadians out there, do you feel like going the entrepreneur/self-employed route makes more sense compared to the U.S.? We get paid way less but work just as much. It feels like we’ve got European salaries with American work-life balance, so what’s the point of staying an employee?
U.S. comp in real estate seems way better in general, which makes going out on your own less attractive down there. In Canada, you’re basically earning half of what Americans make while paying more in taxes.
I don’t know, maybe it’s just because I’m early in my career, but it feels like the regular 9-to-5 grind isn’t worth it here. Comp is lower and life’s expensive, so going out on your own seems like the only real way to make it.
Based on the most helpful WSO content, here are some insights on the topic of entrepreneurship versus traditional employment in Canada:
Key Points:
Compensation Disparity:
Work-Life Balance:
Entrepreneurship Benefits:
Challenges of Entrepreneurship:
Cultural and Economic Context:
Conclusion:
For many Canadians, the lower compensation and higher cost of living make traditional 9-to-5 jobs less appealing. Entrepreneurship offers a viable alternative with the potential for greater financial rewards and personal satisfaction, despite the inherent risks and challenges. This decision ultimately depends on individual circumstances, career aspirations, and willingness to embrace the uncertainties of self-employment.
For further discussion and personal experiences, you might find the following WSO threads helpful: - https://www.wallstreetoasis.com/forum/investment-banking/overlooked-tru…</a">Why You Should Launch a Startup Instead of Going to the Buyside - https://www.wallstreetoasis.com/forum/investment-banking/overlooked-tru…</a">6 Lessons Learned After Leaving Finance For Entrepreneurship
Hope this helps!
Sources: Why You Should Launch a Startup Instead of Going to the Buyside, Canada to NYC Lateral, Why You Should Launch a Startup Instead of Going to the Buyside, IBD Barriers to Entry For Canadians and How to Overcome Them, Any fellow Canadians going to the States in 2019 for FT/SA start? How confidant do you feel about your visa?
Bump
There's no "better" - everyone seems to think they can just go out and be an entrepreneur, in reality very, very few of us are equipped to do that and be successful to a degree that you'll make more money than you would have climbing the corporate ladder. It's a totally different skill set.
Yes, you potential comp is better as an entrepreneur, obviously. That's true in the US as well.
I would actually argue that going out on your own is more attractive in the US than Canada simply because its a larger, more fragmented market. It's extremely difficult to carve out a meaningful niche for yourself in Canada unless you're willing to risk it in deep secondary/tertiary markets, because there are so few solid markets here and the industry is insanely consolidated/institutionalized compared to the US.
Great insight, although a bit depressing.
What do you think about self-employed folks in the industry whose income doesn't depend on actually buying/building? Like architects, market consultants, appraisers, ...
Seems like if you build up a good client base, contract work can be way better than the corporate slog. Income potential is reduced versus 'pure' entrepreneurship, but the risk is wayyy lower, and if you're good, you get more freedom and better tax advantages vs. a typical employee setup.
Sure, but its still going to take an entrepreneurial skillset to get really successful at (going out and building a client list requires a similar process). Lots of folks out there make a killing just working on the consulting side. But I would argue you're actually more of a corporate slave in that type of role because you always answer to the client, not just yourself, so you don't set your own hours and schedule the way you would buying/building (not to say you're not going to work more in one or the other, but you'll have greater flexibility when you aren't beholden to client deadlines).
Being an entrepreneur is fucking HARD and requires a different kind of talent. The best entrepreneurs in this industry, and any really, have an amazing talent for the big picture, influencing others/sales, and leading teams of more technically competent individuals. Most people who start off in corporate then try to branch out are in the latter group and not equipped to do the start-up portion.
Self employed 100%. Worked in banking prior to leaving to join the family business. Lifestyle is way better, earning more money and have a lot more control over my earnings trajectory. If I put in more work I make more money - it’s simple. In banking, I had to battle politics, navigating promos and a bunch of other bs that I don’t get here. Leave as quick as you can and start something. Eventually the business begins to work for you to keep there from selling it.
Good stuff. Do you get scared of missing out on the potential 'career growth' and brand name that would come with a corporate career? Or do you ever miss the stability of a corporate life?
ah yes, how could I forget about my family's business! It was there all along...
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