Solopreneur Vs Entrepreneur: What's The Difference?

Understanding the differences between a solopreneur and an entrepreneur is essential for making informed decisions before setting up your own business.

While both reflect various types of small businesses and the ability to be your own boss, solopreneurs and entrepreneurs have different roles and responsibilities.

If you're a new business owner or expanding your horizons, this guide will help you determine which is right for you.

Solopreneur Vs. Entrepreneur: What's The Difference?

If you're considering going into business independently, you'll need a clear plan of action to help finance your venture and get it up and running.

To help you deliver a strong business model, we've broken down the difference between a solopreneur and an entrepreneur with examples of how each works.

So, let's explore the differences between a solopreneur and an entrepreneur and break down everything you need to know:

What Is A Solopreneur?

A solopreneur is an individual who builds their own business independently while organizing and managing the day-to-day operations.

Working alone, solopreneurs function without the assistance of a business partner and don't employ any staff to assist with the business.

The types of small businesses set up by solopreneurs can vary, although they typically provide services and consultation for other businesses.

While a solopreneur shares many things in common with a freelancer, a few core differences separate the two types of roles.

If you're looking into becoming a freelancer, you're more likely to offer your services to clients on a per-project or per-hour basis.

You may also roll in various services for potential clients that offer flexibility compared to focusing on one product or service.

Solopreneurs also build their brand around a business, while freelancers typically center the promotion of their work around particular skills.

There's also a degree of flexibility to freelancing that their solopreneur counterparts don't always have due to their tighter work schedules.

With that said, solopreneurs can vary wildly; for example, the best virtual assistant jobs for beginners can fall under the solopreneur umbrella.

Solopreneur Business Examples

Now that we've outlined what a solopreneur is, it's time to present a few real-world examples to help you contextualize the concept.

The best solopreneur business ideas are easy to set up and reach out to potential clients, with the possibility of bringing in significant revenue.

Here are ten solopreneur business examples that are popular among people looking to set up a new company on their own:

1. Graphic designer. Working alone as a freelance graphic designer is a popular example of a single business focus that applies to solopreneur businesses.
2. Personal trainer. A solopreneur business owner with the relevant qualifications in fitness can set up a company offering their personal training services.
3. Web designer. Many solopreneurs with web development and design experience set up alone to provide these services to a range of clients.
4. Event planner. While event planners collaborate with other service providers for corporate and private events, their core work is performed alone.
5. Pet grooming. With a low setup cost and flexibility, pet grooming is a popular solopreneur idea for people who love spending time with animals.
6. Content creation. YouTubers and podcast hosts creating online content often work solo to write, record, and edit their videos and podcasts.
7. Affiliate marketing. Solopreneurs with a strong presence on social media platforms like Instagram and TikTok can generate a steady income through affiliate marketing.
8. Freelance writing. Working alone as a freelance writer covers a wide range of content, from producing copy for advertising to writing blog posts and articles.
9. Software development. While large-scale software requires teams of programmers, many apps and mobile games are developed by solopreneur coding experts.
10. Photography. Whether you're working as a wedding photographer or in a studio taking family portraits, photographers often work independently.

These and other examples of solopreneur ventures are popular side hustles to pay off debt without the need to hire employees for their work.

Additionally, should you find yourself with more work lined up than you can manage, you can switch up and become an entrepreneur and hire staff to help.

Pros & Cons Of Being A Solopreneur

Whether you're looking into the best virtual assistant jobs or a solopreneur marketing agency, there are advantages and disadvantages to consider.

Before you decide to launch your new solopreneur business venture, consider the following pros and cons so you can make informed decisions.

Solopreneur Pros

• A flexible working schedule. Working for yourself means you can choose when you take time off and when you want to dedicate long hours to building your solopreneur business.
• Career choice and freedom. As a solopreneur, you'll have complete control over your career direction and the freedom to make decisions you consider best for your future.
• Potentially high profit margins. As the only employee for their business, solopreneurs typically enjoy the lion's share of all profits they make through their work.
• Low overhead costs. Without the need to pay employees and rent office space, solopreneurs tend to have very low overheads compared to standard companies.
• Quick decision-making. Since solopreneurs are a one-person show, they can make instant decisions without being run by business partners and other interested parties.

The advantages you can enjoy as a solopreneur can give you an edge over more established companies and the ability to react quickly to market trends.

Thanks to its streamlined nature, it's one of the most flexible business models, making it ideal for smaller startups looking to exploit a niche.

Solopreneur Cons

• Uncertain level of income. When first starting as a solopreneur, it can take time to ascertain the level of income and revenue your new venture will bring in.
• Feelings of loneliness. While some people are self-motivated, those who prefer interaction may feel isolated being the only person in their business.
• Lack of benefits. Like other forms of self-employment, solopreneurs lack the benefits associated with regular employment, such as paid holidays and health insurance.
• Higher financial risk. While a successful solopreneur can enjoy huge financial rewards, they risk financial ruin if their business venture fails.

These potential downsides are undoubtedly challenging, but if you're prepared for all outcomes, you can manage your expectations accordingly.

Limitations regarding benefits and time off can be transformed into opportunities to improve your workflow and effective time management.

What Is An Entrepreneur?

Like solopreneurs, entrepreneurs start businesses, offering customers various products or services in a marketplace.

Many of the best small business ideas come under the entrepreneur umbrella, with various staff members handling different day-to-day tasks.

Like solopreneurs, entrepreneurs focus on a limited selection of products or services, take on much of the financial risk, and arrange startup costs.

However, while entrepreneurs manage their company's day-to-day tasks, they are only partially responsible for some aspects of their business.

Because they hire additional employees to assist with this work, entrepreneurs are responsible for managing financial obligations such as payrolls.

At the same time, they have access to funding and investment resources to help entrepreneurs begin their companies on the right foot.

While both solopreneurs and entrepreneurs add value to the economy, entrepreneurs focus on providing leadership and management to their employees.

There are plenty of great resources on how to succeed as a first-time entrepreneur for those planning to hire staff and expand their company.

Entrepreneur Business Examples

We've covered how small business owners and entrepreneurs hire employees and delegate tasks, distinguishing them from solopreneur businesses.

Some of the best service-based business ideas fit into the entrepreneur category, particularly those that involve serving food and drinks to customers.

Here are ten examples of entrepreneurial businesses to give you some food for thought if you're happy hiring employees at your company:

1. Retail services. Whether selling sporting equipment or opening a fashion store, you'll need to hire employees to help with customer services and sales.
2. Video game development. While a solopreneur can develop mobile games, most require teams of artists, animators, and coders to build them and make them ready for release.
3. Building and construction. The construction industry is another example of how entrepreneurs typically work with teams with expertise in building, plumbing, and other areas.
4. Social media platform. Like software development, building a social media platform requires multiple employees to handle programming, marketing, and other core tasks.
5. Financial services. Banks and other financial institutions employ a range of people to help them interact with their customers and manage their finances over time.
6. Online e-commerce platform. Running an e-commerce platform can be achieved alone, but larger operations will hire employees to manage inventory, customer complaints, and shipping.
7. Corporate design services. Designers who work on large projects for corporations typically work in teams who can offer a range of designs to meet their client's specifications.
8. Cafes and restaurants. As with the retail industry, the service industry surrounding cafes, restaurants, and establishments such as bars need workers to run effectively.
9. Catering providers. With the need to manage large orders and deliver services at events with many guests, catering providers often employ staff to fulfill their obligations.
10. Delivery services. Online and offline delivery services with large volumes of orders to fulfill will hire multiple drivers and warehouse operatives to meet the role's demands.

Becoming an entrepreneur can be challenging, but starting a podcast and other promotional drives can be used to help pick up new business.

If you're happy working with and motivating people, having a team of staff can be a rewarding experience when running your own company.

Pros & Cons Of Being An Entrepreneur

As with the best freelance business ideas, some advantages and disadvantages must be considered before becoming an entrepreneur.

Here are some pros and cons entrepreneurs typically have to factor into their decision-making process when deciding how to proceed.

Entrepreneur Pros

• Potential for massive financial rewards. Like solopreneurs, entrepreneurs can earn significant sums of money if their business venture succeeds.
• Bringing value through employment. Creating job opportunities that allow employees to develop new skills and advance their careers can be incredibly rewarding for entrepreneurs.
• Creative decision-making. Entrepreneurs typically have excellent levels of creative control running their organization and can shape the company's future direction to match their long-term vision.
• Opportunity for personal growth. Just as becoming an entrepreneur delivers feelings of satisfaction through hiring employees, it is also an excellent opportunity for personal growth and development.
• Possibility of scaling up your business. Many entrepreneurs enjoy the challenge of building up their company over time, with great potential for scaling up and taking on more clients and employees.

If your vision for your company is broader and includes considerable expansion through success, an entrepreneurial model could be for you.

While there's a lot of competition, entrepreneurs can enjoy personal and professional satisfaction by bringing value to the economy.

Entrepreneur Cons

• Potentially long working hours. Whether setting up a new ecommerce business or a retail chain, entrepreneurs usually work longer than most other employees working for regular companies.
• The risk of firing employees. When times are tough, entrepreneurs have to make hard decisions about their workforce and let staff go even if their performance has been great.
• Finding financial backers and investment. Whether it's tax time or handling payroll for employees, entrepreneurs need to make sure they have enough money to cover their business expenses.
• High levels of stress. Having complete control of a business's long-term direction can be liberating but can also be a source of constant anxiety and worry.

Entrepreneurial business ventures can be hugely rewarding, but the additional responsibility of staff adds an extra emotional burden to consider.

If you aren't prepared to make tough decisions about the future of your employees, becoming an entrepreneur might be something to avoid.

Solopreneur Vs. Entrepreneur Vs. Freelancer Key Differences

Before we wrap up this guide to the differences between a solopreneur vs entrepreneur, let's quickly recap the key differences you need to know.

First and foremost, the main thing to bear in mind is whether or not you'll be hiring employees, and solopreneurs typically work as the sole owner.

While their work bears similarities to some of the best freelance jobs for beginners, they also tend to focus more on a single product or service.

Since entrepreneurs work with employees, the potential scope for their companies is much larger than either solopreneurs or freelancers.

This means they can hire individuals for specific tasks, such as sales or marketing, while solopreneurs will perform such duties themselves.

Summary

We hope you've found this article exploring the key differences between a one-person business as a solopreneur vs entrepreneur a helpful resource.

Your business growth, financial management considerations, and startup costs will depend on which you choose and how you implement your business idea.

If your solopreneur business grows over time, you can consider taking on employees, expanding as an entrepreneur, and setting ambitious business goals.