Frankly, I am so over all this debate over whether self employment is better than working for someone. Oh, and I am so going brain the next person who calls me a wage slave.
To me, the types of employment are just different ways of earning income. The various methods, by themselves, does not a wealthy person make. I know bankrupt ex-entrepreneurs and multi-millionaire dudes who have worked for others their whole lives (and not in highly paid positions either!).
The time flexibility of self employment part may also be overrated for some people. I personally would never be able to live with the free-and-easy kind of schedule my free-lance translator sister keeps, since I need structure of sorts. My parents can choose to take off or go in late to their small manufacturing business now and then, but not before worrying about skiving employees, delivery of major supplies, clients calling for various reasons, etc etc, kind of like an employee! And there are two of them! I cannot imagine it would be any easier for those one-person set ups.
Just know that regardless of whichever you choose, do it with consideration of your strengths and weaknesses, and the overall economic situation. A career working for others may not always be dead-ended; an entrepreneurship may not always be limitless, at least not without corresponding capital injection and hard work. There are pros and cons for each choice, don’t believe those who tell you only the positives; it just means they are out to sell something.
Most importantly, no matter what your choice is, do remember that there you are only choosing your method of earning income. That is just one part of the wealth equation:
Wealth = (Earn – Spend) x Investment Returns
2/3 of that equation is independent of the type of employment.
My parents are frugal entrepreneurs who never thought about that last part, and are feeling the pain of lost opportunities only now. My parents also had to plough most of their earnings back into the business, and to keep serious liquidity at hand, which means they were hardly diversified in their investments. It also limited their risk appetites and tolerances, and in turn their gains.
My mentor, Mr C, who is several years younger, worked for others all his life, and never made more than my parents from his day job. However, he put a great deal of effort in his investments. He was also able to take a lot more risks and leverage more than my parents in his investments. He lost all his money in 1997 Asian crash, but the job kept food on the table, and his children in school. The job allowed him to accumulate capital and try again. And today, he is a multimillionaire.
Believing that working for others will limit you is self fulfilling prophecy as it keeps you from putting effort in the other 2/3 of the wealth equation. On the other hand, don’t be so quick to assume that you are on the way to riches just because you have become an entrepreneur. There is still 2/3 of that equation to take care of.