Are you a Freelancer or an Entrepreneur?

As you begin your journey towards self-employment, you may often be asked whether you are a freelancer or an entrepreneur. Terms like solo-preneurs which refer to people who work for themselves are also quite common. Though there are many characteristics common to both freelancers and entrepreneurs, there are quite a few differentiators too. According to dictionary.com, ‘freelancer’ is a person who works as a writer, designer, performer, or the like, selling work or services by the hour, day, job, etc rather than working on a regular salary basis
for one employer. An ‘entrepreneur’ on the other hand, is a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.

Most service-based professionals like photographers, videographers, graphic designers, personal trainers, counsellors who venture on their own are usually freelancers who monetise their talent. These are usually time-intensive businesses where a level of personalised attention is required which make it difficult to scale up. The idea of growing a company is usually not appealing to freelancers, who may sometimes be pursuing freelancing just as a stop-gap
arrangement.

An entrepreneur may in many cases offer a product or service that has no proven market track record. Entrepreneurs dedicate time and money towards developing an idea that will generate revenues in future. Entrepreneurs want return on their investments and hence, an appetite for risk and urge to scale is important. Scaling up may require external funding, hiring and investments in business assets and hence a long-term focus is critical.

You have to decide on your self-employment goals. If you’re just interested in earning some extra money on the side or just working from home, freelancing is perfect for you. However, many freelancers evolve to form their own companies. As an entrepreneur, you can be your own boss, develop something new, create jobs, contribute to the growth of the economy, follow a path different from the rest and create a lasting legacy. The choice is yours…