• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Advance IT Center

  • Home
  • SEO Bangla Tutorial
  • Courses
    • Graphics Design Course in Dhaka
    • SEO And Digital Marketing Course
  • Blog
  • About
  • Contact
Home » The Difference Between Freelancing and Entrepreneurship – Why the latter is better?

The Difference Between Freelancing and Entrepreneurship – Why the latter is better?

A common mistake that people do these days is that they misunderstand the words freelancing and entrepreneurship. This term is not that surprising because as jumbled as they have become, it is easy to be confused. To clear up the misunderstanding, we will be looking at their differences by understanding what well-established freelancers and entrepreneurs have to say about it and why people think entrepreneurship is better than freelancing.

The meaning of entrepreneurship has become so muddled that even Forbes seems to have gotten it wrong. A Forbes contributor named Brett Nelson stated that “Entrepreneurs are those who identify a need – any need – and fill it”.

But this is very wrong, search for the meaning of the word on Google or in dictionaries, you will find something different. Entrepreneurs are those who set up a business or businesses by taking on financial RISKS in the hope for profit. The key word here is ‘risk’.

This is what many people ignore these days because if you ignore risks, then you get something that is entirely different and you move away from the world of entrepreneurship. Another mistake that people do is that they mistake independence with an enterprise. It is true that entrepreneurs are independent but that is also true in case of freelancers and business owners, and this is why the three may seem closely similar.

Taking Risks

Taking Risks is the most important factor when defining entrepreneurship; entrepreneurs make a considerable risk when setting up their business. When you create a company, you invest a lot of money into it, and if it flourishes you begin to look for investment elsewhere too. The fact here is that you have to have nerves of steel to become an entrepreneur. There a common saying that only one in five businesses takes off, the other four goes to the dump.

The odds are not at all encouraging because opening a business usually requires to invest a lifetime of savings or probably having to mortgage a house. Imagine if these risks do not pay off, what then?

Freelancers, on the other hand, take almost no financial risks at all. If you are a freelancer, then consider your situation and what you do. In freelancing, you offer yourself, meaning your skills to your clients. Here, you don’t spend money for it, and therefore, you don’t risk your money. This is the key to clear the misunderstanding of the topic.

How each view Time

Time is a significant factor for freelancers because basically what they do is trade time for money. This is however not true for entrepreneurs. If you are a freelancer, you will see that you earn to pay for the amount of time you work and if you stop working, the inflow of cash will also end. But if you are an entrepreneur, you will earn money even when you are not working.

Seth Godin

Seth Godin

A former dot-com business executive

“Freelancers get paid for their work. If you’re a freelance copywriter, you get paid when you work. Entrepreneurs use other people’s money to build a business bigger than them so that they can get paid even when they sleep”.

See the difference? Consider well-known entrepreneurs like Bill Gates, Warren Buffet and others. Do they stop earning money when they do not work? They do not, but if you are a freelance writer, you only make money when you work on articles or such that your clients give you, but if you take a month off from writing, you will prevent yourself from earning too.

In short, the difference is that:

  • Freelancers exchange their time for money.
  • Entrepreneurs depend on other people, automated systems for work without their direct involvement. But they are independent of the operations themselves.

Consider another way of looking at things; if you are a freelancer, you are self-employed; you are not committed to one particular company or client. If you move a little past that, you can start hiring other freelancers to do jobs that you have no skills for then you run a small towards business ownership and lastly when you include the risk of money, you enter the stage of entrepreneurship.

MOTIVATIONAL STORY : Jack Ma's Life Advice Will Change Your Life (MUST WATCH)

Why many consider Entrepreneurship the better option

So why do people feel themselves entrepreneurs even when they are freelancers? It is because even without knowing the exact difference, people view it to be the better option. Truth being said entrepreneurship is the better choice among the two albeit the higher risks. But even that hurdle can be overtaken through dedication and careful planning.

First off, as said before, as a freelancer, time dictates all. It depends on you spending the time of your choice that would control how much money you make. Just from this wouldn’t you want a world where you would keep earning even when you are not in active hours? This is enormous benefit entrepreneur has over freelancers.

Freelancers thrive in a market that is already huge, the bigger the market; the more significant your earning would be. But then you have another problem, with a market that big, you would also compete with other freelancers with skills similar to yours. That means that you have to have skills that overshadow all those other freelancers so that clients are attracted to you.

Forbes did get one thing right; business is all about finding people’s need and then finding a way to fulfill it. If you do see such a market where there is the need and the competition is low, then with the reasonable amount of planning and dedication, no one can stop you from being successful, and with success will come to a massive amount of cash inflow that you can never achieve being a freelancer.

Another benefit that entrepreneurs have is the ability to earn even when taking a vacation. Freelancers do not get to enjoy such luxury, the moment they decide that a holiday is in order, their income would stop. Day to day operations of a business is taken care off by managers and employees that enable entrepreneurs such luxuries.

In the end, it depends on you to choose which suits you the most. Entrepreneurship may seem very attractive because of the money, but keep in mind that you have to work a whole lot more than a freelancer if success is in your mind. It is not uncommon for startup entrepreneurs to work 52 hours a week whereas you do not need that much hard work as a freelancer in the beginning. Both require a significant amount of dedication but in the end, what doesn’t?

However, it is true that in general, entrepreneurship is better. Why? The answer is simple. You get to earn a whole of a lot of money, and you can scale up later on when the business gets bigger than you. So, now that you know the fundamental differences between freelancing and entrepreneurship, you can differentiate what you are and if you are a freelancer, try moving towards enterprise, trust me, it would do you well in the future.

April 29, 2022

Primary Sidebar

Recent Posts

  • Why is Digital Marketing Important for Business Growth?
  • What is content://com.android.browser.home/
  • The 20 Best Graphic Design Schools in the US
  • Tasks You Should Outsource to Virtual Assistants
  • How Brands Can Use Animated Videos to Grow Conversions
  • How to Fix Windows “Error Code: 0x0 0x0”
  • Best Known Google Ranking Factors in 2022
  • আমাকে দিয়ে কিচ্ছু হবে না….
  • আউটসোর্সিং কোর্স করার পূর্বে যে বিষয়গুলো অবশ্যই জানতে হবে
  • How to Become a Motion Graphic Designer
  • User Experience, Conversion Optimization, and Copywriting
  • How to Get Debt Consolidation Loans: Everything That You Need to Know
  • What is the BERT Google Update And Why Should You Care?
  • How To Kill Google Chrome Helper – Your Guide For Macintosh
  • Top 20 3D Animation Software for 2022 and Beyond
  • I’m Feeling Curious : Google Tricks and Fun
  • How to Change Spotify Username [100% Working Method]
  • 50 Best Graphic Design Books for Aspiring Digital Designers
  • What is Google Birthday Surprise Spinner & How to Play it?
  • How to do Upside down Question Mark ( ¿ ) [Complete Guide]
  • The 50 Most Famous Graphic Designers & Artists
  • Top Features of E-Commerce CMS Platforms You Need To Look Out For In 2022
  • How to Rank Fiverr GIG – Tips and Tricks – How To Get First Order
  • A Quick Guide to Broken Link Building
  • The Pathetic Truth behind Online Outsourcing: Things you should know
  • How to Rank Content in Google Without Backlinks : A Start-to-Finish Guide
  • Great Communicators: How To Connect With Your Employees
  • 10 Practices to Keep a Healthy and Happy Freelancing Lifestyle
  • 7 Ways Freelancing Can Be Terrible For Your Mental Health
  • Pros and Cons of Employee Monitoring: Does It Increase Productivity?
  • What is DevOps and Why You Should Consider Using It
  • How to Keep a Steady Freelance Income: Step by Step Guide
  • 14 Ways to Go From Freelancing to Passive Income
  • 8 Employee Retention Strategies for 2021
  • Voice Search SEO Tips: How to Optimize in 2022
  • How To Select The Right Type Of SSL Certificate For Your Website
  • 10 Benefits of the Press Release Marketing
  • Content Marketing Tips for Startups
  • Everything You Need to Become a Freelancing WordPress Whiz
  • Precautions to Take When Switching WordPress Theme to another
  • The Benefits of Using Social Media to Promote Your Business
  • Free Project Management Software for Freelancers
  • 8 Email Marketing Tips to Grow Your Business
  • 7 Effective SEO Tactics that still work in 2021
  • How to Increase Social Media Engagement
  • 10 Tips You Should Know For Getting Hired as a Content Writer
  • Should You Hire a Digital Marketing Agency to Run your Business Online?
  • Choosing the Right Partner and De-Risk Your Online Training Initiative
  • Top 6 Mistakes Avoid When Outsourcing a project To Freelancers
  • How to Make Money as a Freelance Writer
  • What is Freelance SEO and How Much Can be Earned from it?
  • Full-time or Part-time Freelancing | How to Make the Exact Decision
  • The 20 Best Freelance Websites for Finding Jobs from Home
  • The Difference Between Freelancing and Entrepreneurship – Why the latter is better?
  • 10 Tips for Protecting Your Data When You’ve Outsourced It to a Third Party
  • 7 Warning Signs that Freelancing is NOT for You
  • Beginners Guide to Freelancing in Bangladesh [Updated – 2022]
  • How to Start Freelancing Right Now With No Experience (Quick Tips)
  • The Realities of Freelancing – How to Know if it’s Right for You
  • Startups and Outsourcing: Ways to Accomplish Progress and Innovation
  • Xoom vs PayPal Controversy in Bangladesh
  • In-sourcing Remotely: A Closer Look at an Emerging Outsourcing Trend
  • Quick Ways of Outsourcing from Bangladesh
  • Outsourcing Learning Opportunities
  • Google AdSense Guide for Beginners
  • How to Write SEO Optimized Content
  • CPA Marketing for Beginners – Step by Step Guidelines 2021 (Updated)
  • Affiliate Marketing for Beginners: A Step-by-Step Guide
  • How to Make Money With Social Media Marketing
  • Effects of outsourcing income on unemployment
  • How Productive is Bangladesh in Online Outsourcing Work?
  • Steps for Easy Income Online
  • Why You Should Love The history of internet marketing
  • Future of Online Freelancing in Bangladesh
  • Prospects of online outsourcing
  • Disclaimer
  • Privacy Policy

Copyright © 2023 — Advance IT Center • All rights reserved.

Last Updated on April 29, 2022 by Alim Tasnim