Pros and Cons of Being an Entrepreneur

Starting your own business vs Employment
Hassan Gujjar 08-0244
Muhammad Awais 08-0346
Uzair Munawar 08-0368

Start your own business
Running your own business is a rewarding but engaging career and life choice. It demands your time and focus. Start by expecting to live your work until it is established so it can get off the ground. There are many different opinions about how to start a business from researching and writing a detailed business plan -- to organize it all -- to just jumping into a passion and trying to make money out of it.
Basic Steps
• Think of everyday problems and then think of how to help them.
• Start with your idea.
• Put together a business plan.
• Determine if you need financing.
• Put together your initial marketing plan.
• Build your infrastructure early. * Move forward and get started.
Employment
Employment is an agreement between an employer and an employee that the employee will provide certain services on the job, and in the employer 's designated workplace, to facilitate the accomplishment of the employer organization’s goals and mission, in return for compensation. The agreement can be verbal, implied, or an official employment contract.
In employment, the employer determines the where, when, how, why, and what of the work that is performed by the employee. The degree of input, autonomy and self-directedness that an employee experiences on the job is a by-product of an employer’s philosophy of management and employment. Employment ends at the prerogative of the employer or the employee.
Start your own business vs Employment:
There is no silver bullet for this question. Business and employment are much related to each other, otherwise business owners would never find employees and employees would never get a job. It’s a matter of your personal taste. It’s like a choice whether you want to work in small or large company.
Your Personal Time

Employment – normally, you work from 8 am to 5 pm with one hour lunch break. The rest is your own personal time that you can spend however you want.
Own business – you will have no personal time at all. You will be busy handling your business

Independency

Employment – yes, you have kind of dependency on your employer. But, it’s not very clear who depends on whom.
Own business –In addition to the politics inside your organization, you have to learn the politics your customers play with. Enemies can kill your business, but sometimes you have no other way rather than getting more enemies.

Mobile Phone

Employment – I used to switch off my mobile phone before I went to bed.
Own business – the phone is always on as customers or colleagues can call any time complaining about the eventual issues. Such night calls happened only once or twice for the last year, but still phone is on as you never know what happens next.

Risks

Employment – probably the most risky thing is to get laid off. You also get depression together with eventual financial troubles as it’s not funny at all to get laid off.
Own business – in case your business fails, you might pay your debts back for many years. And you get depression too.

Lifestyle

Employment – you get a paycheque regularly. The amount in your paycheque defines your lifestyle.
Own business – since the majority of income comes back to business, we spend only reasonable amount of money for living, buying things we really need. It’s kind of downgrade for me comparing to my lifestyle when I was employed. Sure, in case of successful business you will probably never remember the financial difficulties, but nobody can guarantee the success.

Career and Power

Employment – there is for sure the fighting for better position, better salary and more power.
Own business – probably, no career issues if you are the only one in your company. If not, then you might face difficulties if you haven’t carefully discussed and signed your partnership agreement.

Knowledge and Experience

Employment – it depends on your job, but it depends even more on how you feel about your job. Even at boring work of making and fixing setup programs you can find something funny to learn and new ways to implement it.
Own business – new experience and knowledge is the most exciting part in running your own business. You learn how to deal with customers, how to keep your accounting in order, how to negotiate and a lot of other stuff.

Employment Islamic References
It is we who divide among them their livelihood in the life of this world, and We exalt some of them above others in rank, so that some of them may command work from the others (Qur 'an, 43:32)
Labor and Capital need not be two hostile camps working against the interests of each other. They have to mutually supplement each other for the common good of prosperity. Some of the very simple, yet fundamental concepts of Islam are:
Brotherhood
Holy Prophet (S.A.W.) said: "Your brethren whom Allah has placed in your custody; Let him who has made custodian of his brother by Allah feed him from what he himself eats, clothe him out of what he clothes himself, and impose not on him work that will overcome him".
Although this tradition primarily refers to the treatment of slaves, it nevertheless contains some very pertinent directives for employers: * Your employees are your human brothers * Treat them with dignity and equality * Do not create animosity by flouting your wealth in a manner that will stir feelings of jealousy and greed.
Minimum wage
The minimum wage should be high enough to meet the basic essentials and requirements of the worker. Anas who served the Prophet (saww) for a long time specifically states, The Prophet never paid a low wage to any person. One of the three persons that the Holy Prophet (S.A.W.) will argue against on the Day of Judgement is a man who engaged a labourer and enjoyed full benefit from him, yet did not pay him (his due) wages.
Prompt Payment
Holy Prophet (S.A.W.) said: "Pay the labourer his wages before his sweat dries".
Compassion
The worker should not be given a task beyond his physical capabilities.
The Holy Prophet (saw) stated: " ...... and do not impose upon him more than he can bear". Good Treatment
Holy Prophet (S.A.W.) said: "Good treatment of those under you brings fortune, whilst bad treatment brings misfortune".
Employment is a trust
Employment is a trust that has to be discharged with absolute commitment. Punctuality and proficiency are the two basic requirements for the discharge of this trust. The Holy Qur 'an refers to these qualities in the following words: One of the two daughters (of Shoa 'ib) said: O my father, employ him; surely the best of men for you to employ is he who is strong and trustworthy (Qur 'an: 28:26).
Honesty
Prophet Muhammad (saw): "A body nourished by ill-gotten gain shall not enter paradise". The Holy Qur 'an states, Man is entitled to no more than what he works for. (Qu 'ran, 53:93)
Commitment
The Holy Prophet (saw) said: "When any man does any work, Allah wishes him to give it perfection and grace (i.e. the man is expected to do his work in the best possible way)".
The beautiful Deen of Allah has regulated every facet of man 's activity. Divine directives are both perfect and compatible to every age and era. Adherence to these directives will ensure peace and stability, whilst aversion to the same may perpetuate strife, loss, and oppression.
Starting your own business Islamic References
The Holy Prophet (SAW) has said:
"There are 70 parts of Ibadat. The best part of it is that of earning in a Halaal way, the best action is to work and earn livelihood by Halaal means. If a person earns by Halaal means then he will get the Thawab equal to the Prophets (A) on the day of Qiyamat."
The Shariah of Islam encourages Trade. There are 10 parts of earning, out of which 9 parts are in business.
However, the Imams (A) always said that a person engaging in trade must know its Masails to avoid falling into sinning.
It is Wajib for a person to earn enough so that he may be able to feed his wife and children.
Six types of trades are Haraam:
To buy or sell intoxicating drinks, non-hunting dogs, pigs, dead animals e.g. meat, skins, hides of non-zabiha animals, etc. Other dealings involving Najis items is allowed if a good and logic use of it is being made e.g. fertilisers, etc.
To buy or sell wild animals.
To buy or sell Ghasbi (usurped) things.
To buy or sell goods used for Haraam purposea, e.g. instruments of gambling, etc.
To receive or give interest during transactions.
To sell adulterated (mixed) goods with full prior knowledge - for example, seeling a bag of flour that contains chalk as well, etc.
Types of trade which are Makruh are:
To sell ones estate or buildings, unless if one is going to buy a new estate (It is recommended in Shariah of Islam that one should live in one’s own house).
Just slaughtering animals (It is said that in doing so one’s mind becomes very hard).
Just to sell Kafan (shroud). As a side business it is allowed.
To do transaction with people of low morals e.g. thieves, smugglers, etc.
To do any business during the time from Dawn to Sunrise. It is the time reserved for the Ibadat of Allah.
To sell grains of foods, because if hoarding is committed then the consequences to be faced from Allah are grave so it has been made Makruh.
To swear during a transaction even when it is true.
INTEREST AND USURY
The basic element of Interest is the exchange of one commodity for the same commodity with an increase in payment. The Islamic law strictly prohibits Usury (the practice of lending money at a rate of Interest). The practice of Usury is equal to acting with hostility against Allah and the Holy Prophet (S). The Holy Quran says:
"O Believers, have fear of Allah and forego what is still due to you from usury, if you are (true) believers; but if you do not do so, be warned of war against you by Allah and His Messenger" (al-Baqarah, 2:278)
Our 8th Imam, Imam Ali ar-Reza (A) has said:
"Usury is unlawful, for Allah, the Almighty has forbidden it because it brings ruin and leads to the wastage of the property of the people. Everybody becomes interested in making easy profit and gives up the practice of advancing Interest-free loans, though it is an act of virtue to help the needy and to lend them money without Interest. In any case, Usury leads to corruption, injustice, violation of the rights of others and the wastage of property."
EVIL RESULTS OF USURY
The above Hadith clearly mentions the evil results of Usury. Other common effects of Usury are:
1. Exploitation and destruction of the poor in a society
2. Strengthening the rich society
3. Discouragement towards helping a fellow Muslim
4. Creation of unemployment
5. Inflation
TAKING INTEREST FROM KAFIR:
According to fatwas of Ayatullah Seestani, a Muslim cannot take Interest from Kafir-e-Zimmi (those kafirs who are under the protection of Islamic state).
It is Ehttyate Wajib not to take Interest from all other Kafirs who are known as Kafir-e-Harbi.
However, in case the Kafirs in both the above cases, agree to pay the Interest on there own free will, then the amount may be accepted not as Interest but with other intentions.
Conclusion/Recommendations
Employment vs. your own business isn 't a formulaic decision that comes out the same for everyone. It depends on your personality and circumstances. Do you have a clear-cut business idea? Have you researched its potential market and competition? Are you passionate about making it work? Do you have (the absolutely essential) support of your loved ones? Are you prepared to risk the loss of your employee benefits and (most likely) your own capital? Are you prepared to work your socks off, quite likely giving up short-term pleasures, with no guarantee of success? These answers to these questions should point you in the right direction.

References: http://www.wikihow.com/Start-Your-Own-Business http://ezinearticles.com/?Employment-Vs-Your-Own-Business&id=1251351 http://www.imamreza.net/eng/imamreza.php?id=3264 http://www.romankonovalov.com/2008/01/13/your-own-business-vs-employment/
http://www.imamreza.net/eng/imamreza.php?id=5630

References: http://www.wikihow.com/Start-Your-Own-Business http://ezinearticles.com/?Employment-Vs-Your-Own-Business&id=1251351 http://www.imamreza.net/eng/imamreza.php?id=3264 http://www.romankonovalov.com/2008/01/13/your-own-business-vs-employment/ http://www.imamreza.net/eng/imamreza.php?id=5630