I came across a financial hot-take today:

“You will make more money by working really hard and getting promoted at your office job than doing a bunch of side hustles.”

It’s a reasonable point. Plenty of would-be entrepreneurs buy a domain, open an online store, boost a Facebook post, and then quietly let the whole thing fizzle. But what about the people who stick with it? Should they instead channel that energy into climbing the corporate ladder?

Paychecks vs. Ownership

Most American families rely on a paycheck. Salaries, hourly wages, pensions, or Social Security checks sustain the vast majority, especially the bottom 90% of earners, whose income comes primarily — if not exclusively — from labor.

But the game shifts at the top. The highest-earning 10% earn much more of their wealth from assets they own rather than the hours they work. Real estate, stocks, and private businesses generate returns that far outpace wage growth. Risk-taking, it turns out, often pays better than productivity alone.

Americans know this. Social media is littered with complaints that the system is broken — the American dream is out of reach for the majority now. Instead of complaining, ask yourself how you can use the system to your advantage.

The Real Payoff of Owning a Business

Business ownership is at an all-time high. By 2022, one in five American families owned a private company. Yet ownership is far more concentrated among the wealthy: nearly half of families in the highest income bracket own businesses.

For those looking scale their hobby into a successful business, the statistics are there. Solo business operators pull in median incomes around $85,000 annually. Add a few employees (between two and five), and that number jumps to $135,000. But the biggest jump occurs with businesses that have six or more employees. These owners, on average, earn around $237,000 annually.

Beyond annual income, owning a business also contributes to wealth. On average, households that own businesses have net worths two to seven times higher than those that don’t. Even single-employee business owners out-earn typical employees. Business ownership offers additional strategic advantages, such as control over income timing, tax planning, and more effective retirement strategies.

In short, business ownership offers leverage, scalability, and direct equity in the growth you create. Most people won’t take the time to explore their options, but these also aren’t the people starting businesses.

Why Ownership Often Wins

The U.S. economy consistently rewards risk more than hard work alone. From 2021 to 2022, business income grew almost twice as fast as labor income, according to the Congressional Budget Office. While wage-dependent households spend more hours just to keep up, those with ownership stakes watch their assets appreciate.

Jobs can offer stability, but only until inflation outpaces your income or your boss decides you’re too expensive. Long-term financial security usually requires owning at least one asset capable of growth. For many, this is property. But if you are savvy enough, a business is an excellent way to leverage your income.

By all means, work hard in your day job, but think about starting a business, too. It’s about investing in something that grows beyond your immediate effort and may lead to so much more.