Solopreneur Vs. Entrepreneur : What’s the Difference?

Solopreneur is not a term that is brand new, but it is one that is seen more often in recent years than before. Many solopreneurs are passionate about their work and what they can provide to the world and their customers, but figuring out the difference between a solopreneur and an entrepreneur can be challenging.

Some common differences between Solopreneur and Entrepreneur includes :

Solopreneurs are Founders and Employees

Someone who is considered a solopreneur is able to manage all aspects of their business, without delegating tasks out to others. They create the business and are the main person responsible for delivering and producing the products. They may occasionally hire a freelancer to get some work done, but most is done on their own. On the other hand, an entrepreneur will hire a team and manage that team to get work done.

Solopreneurs Have One Business Focus

Most solopreneurs are excellent at niche offerings to their customers. This helps them to find their own space in the industry that they choose, while also ensuring that they do not take on too much at once. An entrepreneur will often focus on many things and diversify themselves to make their company bigger. Looking at a social media company, a solopreneur may have a few packaged services to offer, while an entrepreneur would offer a lot of individualized options for the client.

Solopreneurs Do Not Build Businesses to Scale

Entrepreneurs often dream of making their companies large. So they design them in a way that it is easy to keep it growing and getting bigger without more work later. For solopreneurs, their goal is to make the business profitable and keep it there just for themselves, without scaling the business.

Financial management is Different

As an entrepreneur grows their business, there will be more financial responsibilities to take on. They have to handle payroll, taxes, benefits, and profits along with other financial goals. For those who are solopreneurs, there are fewer things to consider financially. They can go with something as easy to manage as a sole proprietorship, which allows them to handle all of the profits and everything else that comes with the financial decisions of the business.

There are a lot of benefits to being both an entrepreneur and a solopreneur. Understanding how each of these works and deciding what kind of business you want to run can make the decision easier.