Freelancing vs. Entrepreneurship: What’s The Difference?

If you are working a 9-to-5 job, the thought of shifting to another career can pass your mind in critical instances when you feel the job is not working well for you. When it does feel like it isn’t working for you, there are several ways you can go about it: pick a new job from a different company with better working conditions, and be a freelancer or entrepreneur. 

While picking a new job in a new company sounds straightforward, some prefer the latter option because of their flexibility and freedom. But, some confuse entrepreneurs and freelancers with one another even though they are different. 

So, what are their differences? Here’s a short guide to help you decide if you should go for freelancing or entrepreneurship: 

Type of Jobs They Take

The first notable difference between freelancers and entrepreneurs can be seen in the jobs they take. Freelancers earn from doing projects for various clients, and the tasks they do for these clients aren’t limited. Unfortunately, they have no control over what they can work on as each client differs. 

Meanwhile, entrepreneurs invest in starting a business, and they have full control over how they go about their business. As a result, they know exactly what they need to focus on and can even expand the business once they gain momentum. 

Growth of Income

As a freelancer, one can build their income quicker than entrepreneurs. Depending on their task, they could be paid immediately after completing it. Conversely, they only get paid once because they will not receive royalties for their work. 

Compared to entrepreneurs, they would have to wait a few months before seeing a steady income. But, they can continue earning even while they sleep, as the business can run independently if you set it up correctly. 

End Goal

Freelancers and entrepreneurs also vary in terms of their end goals. Freelancers aim to have a stable career and not have any boss ordering them around. They are also able to increase their workload at their own pace and, later on, adjust their rates. 

Meanwhile, entrepreneurs have two possible end goals: sell a lot to get a lot of money or build a profitable income stream in the long run. 

In Other Words..

Both freelancing and entrepreneurship have their pros and cons, and it will depend on your goals to see whether one works best for you compared to the other. Look at the tasks you want to complete and if you have the mindset to stick with it. Freelancing may be the best option if you love to earn money immediately and only focus on one task. Meanwhile, entrepreneurship may be the way to go if you want to develop your business first so it becomes a powerhouse in the future. Whatever you select, both will give you more freedom in how you work and help you achieve your goals at your own pace. 

Whether you are starting out as a freelancer or as an entrepreneur, it’s good to read up on these:
Do You Think Business Ethics Is Important?
5 Key Questions to Ask Yourself When You’re Struggling to Grow Your Business
4 Solid Pieces Of Business Advice For Young Professionals

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