Entrepreneurship vs. Freelancing: What’s the Difference?
Abstract
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.
Downloads
References
Akhmetshin, E. M., Kovalenko, K. E., Mueller, J. E., Khakimov, A. K., Yumashev, A. V., & Khairullina, A. D. (2018). Freelancing as a type of entrepreneurship: advantages, disadvantages and development prospects. Journal of Entrepreneurship Education, 21(S2), 1.
Artisan (2017). 10 Qualities of a Successful Freelancer. Retrieved from https://creative.artisantalent.com/10-qualities-of-a-success-ful-freelancer
Brinkley, I. (2016). In Search of the Gig Economy: The Work Foundation. Retrieved from http://www.theworkfoundation.com/wp-content/uploads/2016/11/407_In-search-ofthe-gig-economy_June2016.pdf
Burke, A. E., FitzRoy, F. R., & Nolan, M. A. (2008). What makes a die-hard entrepreneur? Beyond the ‘employee or entrepreneur’dichoto-my. Small Business Economics, 31(2), 93. https://doi.org/10.1007/s11187-007-9086-6
Burke, A., & Van Stel, A. (2011). The entrepreneurship enabling role of freelancers: Theory with evidence from the construction industry. International Review of Entrepreneurship, 9(3), 131-158.
Burke, A. (2012). The role of freelancers in the 21st century British economy. PCG Report, London: PCG.
Burke, A., & Cowling, M. (2015). The use and value of freelancers: The perspective of managers. In A. Burke (Ed.), The use and value of freelancers: The perspective of managers (pp. 1-14). Dublin, Ireland: Senate Hall.
Darlington, N. (2014). Freelancer vs. Contractor vs. Employee: What Are You Being Hired As. Retrieved from https://www.freshbooks.com/blog/are-you-being-hired-as-an-employee-or-freelancer
Donovan, S. A., Bradley, D. H., & Shimabukuro. (2016). What does the gig economy mean for workers? Washington, DC: Congressional Research Service, (CRS Report R44365).
Ezzedeen, S. R., & Zikic, J. (2017). Finding balance amid boundarylessness: An interpretive study of entrepreneurial work–life balance and boundary management. Journal of Family Issues, 38(11), 1546-1576. https://doi.org/10.1177/0192513X15600731
Fitz (2019). How to Transition from Being a Freelancer to a Solopreneur. Retrieved from https://fitzvillafuerte.com/transition-freelancer-solopreneur.html
Friedman, G.(2014). Workers without employers: shadow corporations and the rise of the gig economy. Review of Keynesian Economics, 2(2), 171-188. https://doi.org/10.4337/roke.2014.02.03
GEM (2019). Global Entrepreneurship Monitor Report. Retrieved from https://www.gemconsortium.org/report. Accessed: 17.07.2019.
Gig Economy Data Hub (2019). What kind of work are done through gigs. Retrieved from https://www.gigeconomydata.org/basics/what-kinds-work-are-done-through-gigs.
Green, D. D. (2018). Fueling the gig economy: a case study evaluation of Upwork.com. Manag Econ Res J, 4(2018), 3399.
Hall, D. T. (2004). The protean career: A quarter-century journey. Journal of Vocational Behavior, 65(1), 1-13. https://doi.org/10.1016/j.jvb.2003.10.006
Huws, U., N. Spencer and S. Joyce (2016). Crowd Work in Europe: Preliminary Results from a Survey in the UK, Sweden, Germany, Austria and the Netherlands. FEPS Studies December 2016.
John L., Utz (2016). What Is a “Gig”? Benefits for Unexpected Employees - ALI CLE. Retrieved from http://files.ali-cle.org/thumbs/datastorage/lacidoirep/articles/TPL1606-Utz_thumb.pdf.
Kässi, O., & Lehdonvirta, V. (2018). Online labour index: Measuring the online gig economy for policy and research. Technological Forecasting and Social Change, 137, 241-248 https://doi.org/10.1016/j.techfore.2018.07.056
Kazi, A. G., Yusoff, R. M., Khan, A., & Kazi, S. (2014). The freelancer: A conceptual review. Sains Humanika, 2(3).
Kirk, B. (2020). Top 6 Advantages of Hiring a Freelancer. Retrieved from https://www.writingassist.com/resources/articles-3/top-6-advantages-of-hiring-a-freelancer/
Malaga, R. (2016). Digital Micro Entrepreneurship a Preliminary Analysis-Case studies from the gig economy. In United States Association for Small Business and Entrepreneurship. Conference Proceedings (p. CA1). United States Association for Small Business and Entrepre- neurship.
Malt and EIPF (2019). The state of European Freelancing in 2018 – results of the first European freelancers’ survey. Retrieved from https://news.malt.com/en-gb/2019/02/12/the-state-of-european-freelancing-in-2018-results-of-the-first-european-freelancers-survey-2/
McKinsey Global Institute (2016). Independent work: Choice, necessity, and the gig economy. Retrieved from https://www.mckinsey.com/featured-insights/employment-and-growth/independent-work-choice-necessity-and-the-gig-economy
Milenković, M. (2019). The Future of Employment – 20 Telling Gig Economy Statistics. Retrieved from https://www.smallbizgenius.net/by-the-numbers/gig-economy-statistics/#gref
Mould, O., Vorley, T., & Liu, K. (2014). Invisible creativity? Highlighting the hidden impact of freelancing in London‘s creative industries. European Planning Studies, 22(12), 2436-2455. https://doi.org/10.1080/09654313.2013.790587
Nation1099 (2020). The Gig Economy Glossary. Retrieved from https://nation1099.com/what-is-freelancing/
Dam, R. (2019). 11 Characteristics of Successful Freelancers and Entrepreneurs. Retrieved from https://www.interaction-design.org/literature/article/11-characteristics-of-successful-freelancers-and-entrepreneurs
O‘Donell R. (2020). Freelance vs. Full-time: The Pros and Cons of Hiring an Independent Contractor. Retrieved from https://recruiterbox.com/blog/freelance-vs-fulltime-pros-cons-hiring-independent-contractor
Parker, P., Khapova, S. N., & Arthur, M. B. (2009). The intelligent career framework as a basis for interdisciplinary inquiry. Journal of Vocational Behavior, 75(3), 291-302. https://doi.org/10.1016/j.jvb.2009.04.001
Partington, R. (2019). Gig economy in Britain doubles, accounting for 4.7 million workers. Retrieved from https://www.theguardian.com/business/2019/jun/28/gig-economy-in-britain-doubles-accounting-for-47-million-workers
Sapsed, J., Camerani, R., Masucci, M., Petermann, M., Rajguru, M., & Jones, P. (2015). Brighton fuse 2: Freelancers in the creative, digital, IT economy. Arts and Humanities Research Council.
Sorensen, J., & Chang, P. (2006). Determinants of successful entrepreneurship: A review of the recent literature. Available at SSRN 1244663.
Stone, D. L., Deadrick, D. L., Lukaszewski, K. M., & Johnson, R. (2015). The influence of technology on the future of human resource management. Human resource management Review, 25(2), 216-231. https://doi.org/10.1016/j.hrmr.2015.01.002
Sullivan, S. E., & Baruch, Y. (2009). Advances in career theory and research: A critical review and agenda for future exploration. Journal of management, 35(6), 1542-1571. https://doi.org/10.1177/0149206309350082
Tran, M., & Sokas, R. K. (2017). The gig economy and contingent work: An occupational health assessment. Journal of Occupational and Environmental Medicine, 59(4), e63. https://doi.org/10.1097/JOM.0000000000000977
Ucbasaran, D., Westhead, P., & Wright, M. (2001). The focus of entrepreneurial research: contextual and process issues. Entrepreneurship Theory and Practice, 25(4), 57-80.
Van den Born, A., & Van Witteloostuijn, A. (2013). Drivers of freelance career success. Journal of Organizational Behavior, 34(1), 24-46. https://doi.org/10.1002/job.1786
Webster, J. (2016, September). Microworkers of the gig economy: separate and precarious. In New Labor Forum (Vol. 25, No. 3, pp. 56-64).
Sage CA: Los Angeles, CA: SAGE Publications. https://doi.org/10.1177/1095796016661511