What if founder risk and employee risk become similar?

 If there are two major means to solve ‘eatenism’, it would be the life of a founder and the life of an employee. And it’s probably risky to tell the difference between the two lives.

[caption id="attachment_4570" align="alignright" width="300"] profit share of boss vs of the employee[/caption]

In other words, the founder risk is very high and the employee risk is very low. Of course, on the contrary, the founder’s reward (reward) is very high, and the employee reward is very small.

Thus! If you want to do something even if you fail, you can choose the life of a founder, and if you just want to live long and thin, you can choose the life of an office worker.

Shall we make a hypothesis here? What if the founder risk is decreasing and the employee risk is increasing recently?

“From the point of view of the founder, the risk is decreasing as the business environment is getting better.”
“From the point of view of office workers, it is said that the risk is increasing as job insecurity is getting worse.”
Looking at the recent trends in the IT industry, I think it’s not unusual to just overlook them.

PROS AND CONS OF AN ENTREPRENEUR VS OF A OFFICE WORKER

Let’s take a look at the founders first.
1. It has become easier to obtain capital
“There is a saying that money and people are all you need to run a business.”
“In the past, to finance a start-up, I had to live in a good house, or if it wasn’t, I had to borrow all the money of my relatives, in-laws, and acquaintances to my family and get a loan if it wasn’t enough.”
“Now, there is a lot of angel investment, and venture capital and government support are active.”

2. The start-up environment is becoming more and more efficient.
“And how much money and time did it take to start a business?”
“I have to find an office, I need to find furniture, I need to buy special equipment such as servers and workstations, I have to prepare administrative documents, I have to process taxes”
“Now, when you enter the startup support centre or co-working space (communal office space), everything is done at once and the server can be processed in the cloud, and programming is also possible with a regular PC or laptop.”

3. It has become easier to save people
“It’s terrifying when you think about it.”
“If you ask us to start a business together, it causes a lot of competition. My parents told me never to run a business. I had to get my ears pierced by a story that said no.
“It’s different now. Of course, there are still psychological barriers, but it’s much better than before.”
“If you are at a certain level of growth, you can attract ambitious young people with various carrots, including stock options.”
“If you think about it, the term startup is pretty sexy, but I have to say I took advantage of it.”

4. The risk of failure is decreasing.
“You went bankrupt while doing business? It’s a disgrace. You owe something you can’t help but become a debtor if you go out of business.”
“It’s the same these days when a business goes bankrupt. But what’s encouraging is that companies and owners are becoming increasingly segregated!”
“If it’s a corporation, it’s quite natural. In Korea, there was a vicious practice of joint guarantee.”
“And even if the company cannot make money right away, it can receive investment if it has growth potential, and the risk control method is also being advanced, such as seeking an appropriate time to sell (M&A).”

This time, let’s take a look at the reality that the risk is getting worse from the perspective of the office worker.

1. Severe fluctuations due to trend changes.
“The pace of change is limitless. The reality of the industry is that it is impossible to predict a few years from now.”
“What will happen if the ups and downs (up and down) become severe?”
“From a company’s point of view, restructuring will often be carried out in the name of management efficiency improvement.”
2. The IT industry has a large proportion of labour costs.
“If there is a restructuring? What do you cut first? Of course, it is the person. If you look at the cost structure, it is said that the labour cost accounts for the majority.”
“The only thing that can’t be done is because IT goes back to people and heads. The manager will eliminate each department starting with no money.”
3. The era of low growth has come.
“It’s the only one that goes against the saying that it grows by more than 10%, but it’s not as good as it used to be.”
“Hardware and software are both in the maturation stage, so it’s rare to see the growth of tens of percent per year like in the past.”
“Of course, innovation can create new markets and industries. But! It is unlikely that it will come from established companies.”
5. What if technical unemployment appears?

[caption id="attachment_4567" align="alignright" width="300"] DISTINCTION BETWEEN ENTREPRENEUR AND MANAGER[/caption]

“It’s a bit of a difficult story, but simply put, technology is eating jobs.”

“This has been a long-standing debate in economics, but the mainstream theory is that technological unemployment is temporary and that as production increases, demand also increases, reaching equilibrium in the long run.”

“That is, no problem! The logic is that even if the number of blue-collar workers decreases, the number of white-collar workers increases.”

 

THE STRUGGLE OF AN OFFICE WORKER 
“However, objections are emerging now.”
“The pace of technological change has to be slow so that there is time for demand to catch up with production.”
“What if the pace of technological change is rapid?”
“The fact that demand does not have time to catch up with production and that the length of the unemployment period for the unemployed naturally increases.”
“And if this state is structured and prolonged, the link between demand and production may collapse. In the end, the damage is to the worker, that is, what choice should we make?”
“What is it? Are you talking about starting a business unconditionally?”
“It’s not that, but the general trend is that there are more opportunities for creative and independent people, whether they start a business or not.” How would you like to prepare?
“If you become an office worker who can’t be cut with excellent skills and management skills, or if you don’t have the confidence to do that, you’ll have to prepare until you can run something creative and independent.”
“But I don’t think I need to become the owner or do everything with my own money just because it’s a start-up.”
“You can find someone smarter than me or think of a joint venture.”
“Several start-up methods and risk control strategies have already been introduced, and I think it will continue to be subdivided and advanced.”
Whether we become a founder or an office worker, I think we have to adjust ourselves well in the changing world in our way.