Difference between Self Employment and Entrepreneurship

When it comes to making a living, there are different ways to go about it. Two of them are self-employment and entrepreneurship.

The main difference is that self-employment involves working for oneself as a freelancer or sole proprietor while entrepreneurship involves starting and running a business that creates value for others and can potentially grow into a larger enterprise.

Before we move to the differences, let’s understand what are Self Employment and Entrepreneurship:

  • Self Employment: Self-employment refers to a person who works for themselves as a freelancer or sole proprietor. They typically offer services or sell products directly to clients or customers without being employed by a company.
  • Entrepreneurship: Entrepreneurship refers to starting and running a business that creates value for others. Entrepreneurs typically aim to innovate and grow their businesses over time.

Also check:

Self Employment vs Entrepreneurship

Now, let’s move to Self Employment vs Entrepreneurship:

Major differences between Self Employment and Entrepreneurship

Self Employment Entrepreneurship
Self-employment typically involves working as an individual. Entrepreneurship involves creating and growing a business that can employ others.
Self-employed individuals may work on a smaller scale. Entrepreneurs have the potential to scale their businesses and create larger operations.
Self-employment may be a way for individuals to earn income through their skills or expertise. Entrepreneurship often involves developing new ideas and creating innovative solutions.
Self-employed individuals may have more control over their work and schedule. Entrepreneurs often have to manage a team and balance multiple responsibilities.
Self-employment may involve lower financial risk. Entrepreneurship involves taking on greater financial risk in order to grow and scale a business.


That’s it.

Note that sometimes, the question might also be asked as “distinguish between Self Employment and Entrepreneurship”.

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Final words

Self-employment and entrepreneurship both involve working for oneself, they have different approaches and goals.

Both can be rewarding ways to make a living, depending on one’s interests, skills, and goals.

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