FINANCE

Building More Than Wealth: The Case for Choosing Entrepreneurship Over the Stock Market

Verified Article
May 13, 2024
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Starting a Business Could Be a Smarter Bet Than the Stock Market Right Now

In the face of ongoing inflation, geopolitical tensions, and civil unrest that we’re seeing globally, those of us looking to build and safeguard our wealth are encountering an increasingly unpredictable economic environment. Over time the stock market has historically been a decent long-term investment, but the current uncertainties have made it an especially risky bet. Lately, I’ve been leaning more towards the idea of entrepreneurship. It seems to offer not only a potentially higher return but also more control over one’s financial future. Here’s why I think starting your own business might just be a better option than the stock market at the moment.

You’re in the Driver’s Seat
When you invest in the stock market, you’re essentially putting your financial fate in the hands of market forces and boardroom decisions—elements outside your control. On the other hand, running your own business puts you firmly in control. You make the calls on everything from your business strategy and staffing to how you market your products and interact with customers. This control is invaluable, especially in today’s volatile world, as it allows for quick adaptations that could be crucial for survival and growth.

The Returns Can Be Substantial
The potential for earnings from a successful business can far surpass what you might see from stock investments. While stocks can certainly provide good returns, they also come with the risk of sudden devaluation. A business you build and grow, however, not only generates daily income but also accrues value as an asset over the long term. Plus, there’s something incredibly rewarding about watching something you built from scratch succeed and flourish.

Strengthening the Economy and Creating Jobs
Starting a new business does more than just potentially enrich you—it also creates jobs and helps stabilize the local economy. This is particularly crucial during times of economic strain. If your business provides essential services or goods, it might even thrive during tough times. Entrepreneurs can quickly pivot to meet new market demands, a flexibility that many larger companies often lack. This not only helps your business but also supports your community.

Tax Benefits Galore
As a business owner, you can access several tax advantages that aren’t available to stock market investors. These range from deductions on start-up costs and operational expenses to potentially more favorable treatment of assets and retirement savings. These financial perks can significantly boost the overall effectiveness of your investment in your business.

Fulfillment and Legacy
Perhaps one of the most overlooked aspects of starting a business is the personal satisfaction it brings. There’s something deeply fulfilling about pouring your passion into an enterprise and watching it take shape. It’s not just about money; it’s about creating something lasting that you can possibly hand down to your children. This sense of building a legacy is something that stock ownership just can’t offer.

Weighing the Risks
Of course, starting a business is no walk in the park. It demands a great deal of time, effort, and capital. The risk of failure is real and higher than in passive investments. But if you’re prepared to tackle these challenges head-on, the rewards can be much more than just financial—they can be life-changing.

Wrapping It Up
Given the rollercoaster state of global markets today, fuelled by inflation and instability, starting your own business could be a smart strategy. It offers control, potential for higher returns, resilience during economic downturns, tax benefits, and personal satisfaction. It’s not an easy path, but for those of us ready to dive in, the rewards could be well worth the effort. After all, there’s no greater investment than one in your own vision and capabilities.


Photo Credit: Envato Elements

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