Keywords: entrepreneurship, asset wealth, employee income, personal wealth, wealth creation, small business owners, entrepreneurs, net assets, reinvestment, wealth protection
Who's wealthier: Entrepreneurs or employees?
Wealth creation is not necessarily a major outcome from owning your own business. Australian Bureau of Statistics data (2005-2006) reveals that employees earn slightly more in income than small business owners/entrepreneurs. However, small firm entrepreneurs have significantly more net assets (wealth) than employees ($797,000 vs. $527,000). These findings occur because small business owners/entrepreneurs reinvest a lot of their business income back into the business itself. These entrepreneurs will need different business advisory services when considering future wealth protection strategies.