Why do people start businesses? Ask around, and you’ll get different answers.
Some think it’s about freedom of not needing to work for someone else. But talk to any business owner, and they’ll tell you the truth: you’re eventually still working for someone. Only now, it’s your clients, customers and sometimes even your investors or shareholders calling the shots.
Others believe it’s the fastest way to wealth. After all, many of the richest people we know are business owners. But that view ignores an uncomfortable reality: that most small business owners don’t make as much as they could in a stable corporate job. Some even lose money, and in Singapore, plenty of salaried professionals in senior management are already financially well-off without ever having to take such risks. In fact, I would say that investing in a business (or buying stocks of quality, listed companies) is probably an easier and even faster way to grow wealth than starting your own business.
And what about working less? That’s probably the biggest myth. Most business owners clock longer hours than employees, sacrificing weekday nights, weekends and sometimes even their health just to keep operations running. It’s really not as glamorous as you think.
Still think running your own business sounds great? Then here’s one more thing to consider. And that is the physical and mental toll of compliance.
Running A Business Means Complying With The Law
The best way to think about business compliance is to see your business as a living entity. Just like how we have an NRIC to identify ourselves in Singapore, every business — whether local or foreign — needs its own identity, which comes in the form of a UEN number.
And just like individuals who must obey the law, businesses also have to follow strict rules. This goes beyond simply running your day-to-day operations. You need to file annual returns with ACRA, pay corporate and GST taxes to IRAS, and keep proper accounting records. If you hire staff, the list gets longer. CPF contributions, fair employment practices and mandatory work injury compensation insurance are all part of your responsibilities.
Depending on your industry, you may also need other forms of insurance, like public liability or professional indemnity, and you have to ensure compliance with data protection laws under the PDPA.
On paper, these sound like simple checkboxes. But in reality, it is tiring, stressful, and eats up valuable time you would rather spend actually running your business. Nobody starts a business because they enjoy paperwork, chasing deadlines, or deciphering legal jargon — yet that is exactly what you sign up for. Starting a business means dealing with business law and compliance, whether you like it or not, and often before you fully understand it.
Worse still, it exposes you to problems you might never have considered. Disputes with customers, clients, or even employees can easily escalate into legal issues or litigation, adding another layer of personal stress to an already demanding journey. If you have too few problems in life and want more, starting a business is a surefire way to ensure that.
Being the Boss Doesn’t Mean Freedom. It Means Responsibility
What many aspiring entrepreneurs fail to realise is that business compliance requirements apply regardless of size. Whether you are running a large corporation or operating as a small business with a small handful of employees, the rules remain the same, and the obligations are equally binding.
Once you hire employees, your personal weight of responsibility increases significantly. Your staff become your responsibility, not just financially but also in terms of their welfare and working conditions. It is no longer simply about paying salaries; you are expected to ensure fair treatment, provide a conducive working environment and comply with employment laws.
The reality is that employees would rarely share the same level of enthusiasm or personal stake in the business as you do. For most, it is a job first, and possibly if you are lucky, a passion next. This means you need to constantly motivate them, manage performance, and handle workplace issues, all while ensuring salaries are paid on time, even when the business is going through a challenging period.
In many cases, holding a managerial role in a multinational corporation can be less stressful and often more financially rewarding than being an employee in a small business.
The Hard Truth About Running a Small Business
Most of us, and rightly so, expect companies to follow the rules. Authorities hold businesses accountable, and society assumes that every company, regardless of size, will meet these standards. That is fair, but if you are the one running a small business, you carry the full weight of these responsibilities alone.
From compliance to employee welfare, every requirement ultimately falls on your shoulders. And quite often, the benefits of being a business owner simply do not outweigh the physical and mental toll. The long hours, constant pressure and never-ending responsibilities can (and will) drain even the most passionate entrepreneur.
The hard truth is that many small business owners are likely better off investing their time, talent, and energy into building a strong corporate career instead. If you can create a semi-successful business in Singapore, chances are that you will likely do pretty well (and earn more) in the corporate world. Climbing the corporate ladder in a good company can often provide better financial rewards, more stability, and far fewer personal sacrifices compared to running a small business in Singapore on your own.
Read Also: Don’t Fall Into The Trap Of Entrepreneurship
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