I know an industrial engineer who, after only a few months on the job, quit his highpaying position as a manager in a multinational company to start his own business.

As an employee, he was described as a nice and intelligent gentleman.   He had excellent communication skills, which was one of the reasons why he would always pass interviews and quickly  get  hired. Employers  liked  him  because  of  his  assertiveness,  leadership,  usefulcontributions and quality output.

However, he also had a history of running into conflict with his co-managers who often competed with him.  Some felt intimated by him.  Others felt that he was always favored by the CEO and President.   Some conflicts were extreme—in his former job he had started receiving death threats, which left him no choice but to quit.

Because of his experiences, he realized that the corporate world was not for him.   He finally chose to go into a business so that he could be his own boss.  With limited capital, he started  a  paint  retail  business. He  became  one  of  the  distributors  of  the  major  paint manufacturers and earned 30% profit from sales as well as extra profit from mixing paints.

His only expenses at the time were the rent of store space and the salary of his two employees (paint mixers), which was given every the 15th and 30th of every month.

His business was doing good.  He paid his two employees well and even shouldered their medical expenses when they got sick. He also provided his employees with the government mandated benefits.  He had a good relationship with them.  In return, they were loyal and did not look for other jobs.

Since his paint business was running fairly well, he ventured into other businesses.   He started a trucking and bus operating business.   In his trucking business, the drivers who worked for him were on an on-call basis.   He paid them above the minimum wage since in his view; truck driving can only be done well by skilled drivers.

This business also ran smoothly because of his ability to satisfy the financial needs of his drivers.  They were well paid and he enjoyed a good relationship with them.   He always ensured that they were happy in their work.    His only addition to the operating expenses was the maintenance of the buses.  No accidents happened in the entire operation because he hired cautious drivers.

Because of his business acumen, he was able to raise his family well and buy properties. He was also able to build his dream house and own a family car and condo unit. His success in small scale businesses were due to his hard work and treating his employees more than fairly and with dignity.

This  story  made  me  realize  that  there  are  people  who  can  be  very  successful  as entrepreneurs yet have a hard time as employees.   For anyone in the corporate world, technical know-how is not an assurance of success.

The skills and mindset needed in starting businesses are sometimes similar to being a manager or corporate employee. However, there are also times when different skill sets are needed.

For both entrepreneurs and employees, these skill sets are a must-have to succeed in their work environments: the ability to relate well with different people, understand cultural diversity and be creative in strategizing solutions.    They should also have the passion to strive for excellence all the time.

In terms of identity, a manager is often considered as the Small Boss in the company hierarchy.    Meanwhile, an entrepreneur is both the Big Boss and a Small Boss of his or her business.   The entrepreneur is the Big Boss because he or she owns the business and has the overall authority in the running of the small scale business.    He or she delegates tasks and decides what is best for the business.  However, he or she is the Small Boss when dealing with or serving the needs of clients.

When it comes to his or her own business, an entrepreneur only competes with his or her own skills to better solve the clients’ needs.  There is no competition between colleagues because entrepreneurs are owners of their business.   This is different from being an employee within a company. Employees in the corporate world tend to compete with their co-workers so they could get ahead.   The competition is often unhealthy and results in conflict.   It can become the root cause of corporate politics because the goal is move up in the corporate ladder and earn more money.

On the other hand, outside of the company, the competition can be even fiercer for the entrepreneur.   Fighting for the lion’s share in profits can mean getting into conflict with market competitors.   In this situation, the stakes are often higher and often related to the sustainability and bottom-line of the business.

Whatever environment you are in, to succeed you must learn to compete with your own skills and not with others.   Whether you are an entrepreneur or employee, you must continue to upgrade your skills for personal and professional growth.   Doing so will serve your purpose of giving the best service to your clients and customers.

Let me end my post by sharing not only the different skills and mindsets needed by entrepreneurs and employees, but also how these skills can result to harmony for both of them in the workplace.

Entrepreneurs are innovators of new business ideas.    Their services and products are meant to solve people’s problems.    They are passionate about finding ways to make their business ideas a reality.   They see this as their personal mission which is why their experience of work, while hard, is still satisfying.

When these entrepreneurs succeed, it means that more Filipino employees can have jobs. Employees will have more choices in terms of the organizations they wish to join, the careers they can pursue and the work available for them to live a meaningful and satisfying life.

A successful  entrepreneur  plans  the  step  by  step  process  of  building  the  business meticulously.   The entrepreneur has plans written down and well documented so that he or she could monitor business progress.    He or she is a risk-taker, innovative and creative in the implementation of business ideas.

To consistently build on the growth and success of his or her business, the entrepreneur should ensure that the employees are well paid and that he or she establishes a very good interpersonal relationship with them.  The entrepreneur involves them in the overall operations of the business to foster trust and ownership—after all, these are keys to a prosperous business.   In turn, happy employees greatly help the entrepreneur so that he or she can fully serve business clients, which results to prosperity for all.