Entrepreneurship vs. Freelancing: What’s the Difference?

Ivona Huđek, Polona Tominc, Karin Širec


The development of Internet technology (IT) at the end of the 20th century
and its integration into the business sector has led to the emergence of
digital labour platforms that provoke a reorganization of work arrangements
by matching the demand and supply of goods and services, known as
the “gig economy”. The “gig economy” stands for economic activities or
work arrangements related to the performance of very short-term tasks
facilitated by digital platforms and can include freelance work, temporary
work, work on-demand and contract work. Our paper focuses on the new,
growing workforce of freelancers. Freelancers belong to the self-employed
category of entrepreneurial activity who do not employ workers, who pay
their own taxes, work on projects, work for several clients, and work remotely,
usually from home. According to various sources and findings, they are also
referred to as entrepreneurs, solopreneurs, digital micro-entrepreneurs,
hybrids of employees and entrepreneurs, enablers of entrepreneurship,
potential entrepreneurs, etc. The purpose of this paper is to examine the
relationship between freelancers and entrepreneurs. The paper will use a
literature-review approach to highlight the similarities and main differences
between freelancers and entrepreneurs and to find an answer to the question
whether freelancers can be considered entrepreneurs or not. In addition, the
paper provides insights into freelance work and highlights the benefits and
challenges that freelancers face in the labour market.


digital labour platforms, entrepreneurship, freelance work, gig economy

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