Entrepreneurship vs. Freelancing: What is the Difference?

 

There has always been misunderstanding among the category of people who are not in formal employment. Some will call themselves entrepreneurs and others freelancers.

So what is the difference between the two? Read on to identify your category.

  1. Time

There are huge differences in how entrepreneurs and freelancers approach time. Freelancers only earn money for hours worked while entrepreneurs earn money round the clock if their business is successful. However, that does not mean entrepreneurship is a cakewalk. Most entrepreneurs start by working for hour’s equivalent to two full-time jobs. Nevertheless, when their idea starts paying off, they are rewarded handsomely even without working.

  1. Skills and ideas

With entrepreneurship, it is all about coming up with an idea that will change the world and your life. It requires you to pursue your creative vision and make it become a reality. The more valuable the idea, the more money you will make.

Freelancing, on the other hand, has their primary value on their skill set. A client will come up with a creative vision and will require your web content skills to deliver what they want. You will need to put in your skills and thoughtfulness into the job.

  1. Products and services

In entrepreneurship, you will be selling products. This could be the latest body lotion, kid’s toys, and the best baking flour or the best beauty soap. The kind that can be couriered. It is a product. The creation, selling, and shipping of products will often cost an arm and a leg in terms of investment. You have to invest in designing of the product, creating prototypes, testing the actual product, getting it manufactured, opening a sales shop, hiring staff, and marketing the product. This is why in entrepreneurship; you require a lot of capital to start with. Digital apps are also products. They equally cost that much when you are trying to set them up.

Freelancers sell services such as photography services, web designing, copy writing, illustration, web content creation, and the likes. Freelancers treat their skills as their investment. They ensure that they have frontloaded the work by investing in the thorough training of their expert areas. If they land a job that, they lack skills for, they either pass it to someone who has the skills or chooses to learn on the job.

The above points clearly highlight the differences between these two categories of jobs. This will enable you to choose what suits you best and works well for you

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