Do you identify as a freelancer or an entrepreneur in your small business?

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Many people identify themselves as an entrepreneur.

#femaleentrepreneur, #youngentrepreneur, and #entrepreneur are common hashtags I see on Instagram, but what does it really mean to be an entrepreneur compared to a freelancer? If you’re starting your own small business, it can all seem very new and different compared to a desk job or even a remote job.

Working in a business school has taught me many things about starting my new small freelancing business. I considered what I was doing was a small business but never entrepreneurial. I learned a lot when I was asked to photograph my first event for the entrepreneurship program.

Even on the outskirts of the event, I realized more than ever about the new products these business owners were creating. Some seemed different enough to claim the title, while others seemed to be piggy-backing off of others. When you compare new concepts like social media platforms, the internet, or even how the computer was down-sized, it can be a daunting prospect to make a new product or service that no one has researched or contemplated creating before.

As a freelancer, it can be reassuring to have a plethora of companies and small businesses who want to use your services.

Comparatively, an entrepreneur might have more push back by promoting new and, sometimes, unusual ideas.

Whichever your business falls under, it is important to know the differences between the two. Freelancing and entrepreneurship are not interchangeable titles. They are two completely different entities that have been combined into the same category.

So that begs the question: what is the difference between a freelancer and an entrepreneur?

What is a Freelancer?

According to Merriam-Webster, freelance means a person who pursues a profession without a long-term commitment to any one employer.

As a journalist, I know many professionals who’ve persued a route with freelancing. Whether to support their income or make all of the income was usually not the question. It more came to the point of how they would pursue freelance jobs or how they procured them.

My coworkers could do anything such as editing, writing, social media management, photography, or web design depending on what they wanted to search for. They only had so many hours in the day but they were able to charge more as time wore on and had an easier time finding work, the more they practiced doing it.

I think the biggest part of being a freelancer is connected to being unconnected from a company on a long-term basis. You might sign on with a company to do more freelance work for them on a monthly basis, but it can depend on projects you pitch to them or that they hand to you.

I love working on freelance projects because it means I have more control over what types of projects I can work on. In my business, I’m able to turn away clients for a project if they don’t fit my criteria for an ideal client. I can also set my own price, which is a nice adjustment from being told about what I will get paid.

On the other hand, as a freelancer, you have to learn what other people want and how to approach others about what services you can provide their business. You don’t have as much security on having a job at the end of the day.

There are many pros and cons to determine if a freelance career is worth the risk. You can do it as you wish or have a small business devoted to your services, like marketing or graphic design.

What is an Entrepreneur?

As an entrepreneur, you might feel a kinship with a freelancer but an entrepreneur is different in many respects.

Merriam-Webster calls an entrepreneur one who organizes, manages, and assumes the risks of a business or enterprise.

Many see an entrepreneur as a new form of business owner. That is partially true. An entrepreneur is commonly seen as a business owner.

One of the identifying points for identifying an entrepreneur is the organization aspect of businesses. Not only do they organize how the business is run but what and how they run another type of business that differs from its competition.

Many observers see entrepreneurship as establishing a new entity. Not only are they assuming a new name for themselves compared to similar entities, but entrepreneurs are also establishing new ways of organizing their business ideas and products.

When you compare Nike and Under Armour, they seem fairly similar. Some of the key identifiers are what makes them each entrepreneurial pursuits. They are able to be competitors and sell similar products but they are using different products and have different ways of creating their products to their customers. This is what sets them apart as entrepreneurs compared to business owners and freelancers.

Entrepreneurs need to understand how to build their small businesses from the ground up and know how to entice others to believe in their product. They might be building off of another business model, but their unique approach to their product or service will help others believe in their small business and help it grow.

Uniqueness tends to be the defining factor in an entrepreneur. For some business owners, they might see their approach or business plan as a unique approach to their small business, when in reality is another freelance business.

Are you a Freelancer or an Entrepreneur?

Now that you know the difference between a freelancer and an entrepreneur, which category does your small business fall into?

Whichever category you fall into, make sure to identify yourself as such with your clients and customers. Each identifier allows you to showcase your services in a different way.

You might be a hybrid of both. Or your business might change and it becomes one or the other.

Either way, learn how to spot the differences between each and identify it correctly in the future.