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Blog-en news-en 03.10.2023

Entrepreneur vs. Employee in Austria: Advantages and Disadvantages

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Austria, with its robust economy, offers numerous opportunities both for individuals seeking employment and those wishing to venture into the entrepreneurial world. The decision to become an entrepreneur or an employee in Austria depends on numerous factors, and each has its advantages and disadvantages. This article outlines the pros and cons of each to provide a clearer understanding of what it entails in the Austrian context.

Entrepreneur in Austria


  1. Flexibility and Autonomy: Entrepreneurs in Austria have the autonomy to make their own decisions and shape the direction of their business. This independence often translates to flexibility in terms of work hours and business strategies.
  2. Unlimited Growth Potential: There is no cap on the profits an entrepreneur can make. If the business thrives, the entrepreneur benefits directly from the success.
  3. Tax Benefits: Austria offers several tax incentives and support structures for startups and small businesses, making it easier for entrepreneurs to establish and grow businesses.
  4. Personal Satisfaction: Creating and growing a business from scratch provides a profound sense of accomplishment.


  1. Financial Risk: Entrepreneurs often need to invest their own money, making them more vulnerable to financial losses if the business fails. Take your time and think before you want to take this risk!
  2. High Responsibility: Entrepreneurs are responsible for all facets of the business, from management to financial obligations. You must obey all the labour laws and other tax issues, but for the latter, you can get yourself a tax accountant.
  3. Uncertainty and Instability: The entrepreneurial world is fraught with uncertainties, and there are no guarantees of success. In times of pandemics, climate change and wars in Europe, there can always come complications.
  4. Time Commitment: Establishing a business often requires longer working hours and fewer holidays, especially in the initial stages.

Employee in Austria


  1. Stability: Employees often benefit from regular monthly salaries, social security benefits, and contractual protections against abrupt job terminations.
  2. Work-Life Balance: Set working hours can make it easier for employees to maintain a work-life balance compared to entrepreneurs.
  3. Training and Development: Many Austrian companies invest in employee training, providing opportunities for growth and skill enhancement.
  4. Health and Retirement Benefits: Employees are entitled to statutory health and retirement benefits, providing security in the long term.


  1. Limited Growth Potential: Salaries have a ceiling, and promotions can be limited based on the company’s size and structure. You are secured through unions, collective agreements, and other benefits. 
  2. Less Autonomy: Employees often need to adhere to company policies and procedures, which might limit creativity and decision-making capabilities.
  3. Job Insecurity: Economic downturns, mergers, or company downsizing can lead to job losses. Despite this issue, there are some professional fields, where employers always look for employees due to a shortage of skilled workers. 
  4. Routine and Repetition: Being an employee can sometimes become monotonous if the job does not offer variety or new challenges.


Choosing between entrepreneurship and employment in Austria is not a one-size-fits-all decision. Both paths offer their own set of rewards and challenges. Potential entrepreneurs should consider their risk tolerance, financial situation, and passion for their idea, while those leaning towards employment might value stability and structured growth opportunities. Whatever the choice, Austria offers a supportive environment for both endeavours.