Difference Between an Entrepreneur and a Freelancer

Difference Between an Entrepreneur and a Freelancer

There is a lot of debate about the difference between a freelancer and an entrepreneur, some people consider themselves one OR the other and not both. I would like to shed light on what these two words mean. An entrepreneur is a person who sets up a business taking on financial risks in the hope of profit (Dictionary.com). A freelancer is a person who is not necessarily committed to a particular employer long-term (Wikipedia). Basically if you don’t get salary regularly from one person, you’re a freelancer. This article helps to point out some major differences between an entrepreneur and a freelancer.

Entrepreneur

1. An entrepreneur is a CEO (owner) of a business, controlling the affairs of the business, and not a person with skills to sell. They take on the financial risks of the business and work together with their employees for the good of the company.

2. The goal of an entrepreneur is to build a company that is capable of expansion, hiring other workers and bringing in a large income.

3. The focus of an entrepreneur is to create demand, this is the basis of their work as they get to sell based on consumer’s wants. They find a gap in the market and look for solutions to bridge the gap, this helps them to establish their markets.

4. An entrepreneur’s business works without him, it can thrive in his absence. He doesn’t have to be physically present every step of the way but put things in place for things to still be fully functional.

Freelancer

1. Freelancers have skill that they exchange for money. They continue to work on their skills because that is what they “sell”.

2. A freelancer’s work time is flexible, they can choose the best time for them to work on projects, and they can even decide to work part time. They could have different clients and work for them all at the same time. They have to learn to manage their time to work effectively.

3. The common goal of freelancers is to come up with content good enough for their clients and their company.

4. As a freelancer, you have to find clients, talk to them, showcase your skills and get them to pay you.

5. Freelancers identify needs, but instead of looking for a gap in the market place like entrepreneurs, they look for established markets and become competitors in the market place.

6. Freelancers don’t take on big financial risks, they look for clients then do the work for the client in exchange for payments.

Basically, Freelancers build on their skills while entrepreneurs build on their ideas. Freelancers work hard for their money while entrepreneurs work hard so they can make money while they sleep. However, it is possible to move from a freelancer to an entrepreneur. That doesn’t say being an entrepreneur is a catwalk, because it isn’t and it requires full commitment.