So you’re self-employed but are you an entrepreneur?

Since the recession, the number of self-employed workers has increased dramatically and both the media and government have highlighted the importance of entrepreneurs in our economic recovery. However, most self-employed workers don’t think of themselves as entrepreneurs. So, how would they describe themselves and do these definitions matter?

Types of self-employment

There are many different types of self-employment. The legal operating modes are sole trader, partnership and limited company, but there are plenty of other forms, such as co-operatives, franchises and social enterprises. You may simply refer to yourself as self-employed or you could define yourself by your trade, as a photographer, marketer, builder or accountant for example.

Many people use the term freelancer or consultant, indicating that they offer a skill or expertise to other businesses for a specific project or period of time. While freelancing covers a wide variety of skills and type of work undertaken, the term is specific enough for the public to understand. However, terms like entrepreneur or solo entrepreneur (often shortened to solopreneur) are a little more vague. For example, the Oxford Dictionary’s definition of an entrepreneur is “a person who sets up a business or businesses, taking on financial risks in the hope of profit”.

It is this ambiguity that leads the terms to be used interchangeably with others such as self-employment. However, while entrepreneurship is a form of self-employment, not everyone who is self-employed is an entrepreneur.

Positive associations and negative stereotypes

Perhaps the heart of the matter for all these definitions is how they are perceived. Whether you refer to yourself as an entrepreneur, a sole trader or a freelancer doesn’t affect what you do or the quality of your work, but can affect the perception people have of you. Therefore, you may say you’re an entrepreneur in one situation and self-employed in another.

Entrepreneurs are generally associated with words like innovation, success and are considered bold and fearless. This really defines entrepreneurs as people who create something new, do something in a radically different way or see a new opportunity. This is why they have been lauded as vital to our economic recovery.  However, they can also be perceived as aggressive and not caring about anything other than money.

Popular misconceptions of freelancers include notions that they:

• don’t get out of their pyjamas (the most common stereotype according to a survey by Crunch Accounting)
• are only freelancing because they can’t find work
• are not as reliable as temps or agency workers
• are ‘starving artists’ – sacrificing making proper money for the lifestyle and type of work they want to do.

Of course, this isn’t true of most freelancers, but the perceptions of your would-be clients do matter. If the term ‘freelance’ automatically turns clients away, it may be best not to use it, but then you’re not helping to combat the stereotype. So how can you change these negative views?

Changing perceptions

Changing perceptions takes time and it also depends on how those opinions were formed. However, you can help.

• Make sure you have the right perception of yourself. If you view yourself as less professional than your employed friends, that will colour how you behave and how your clients view you. Read our short guide to becoming a freelancer.
• Market yourself professionally. If you want to be taken seriously, you need to appear professional and knowledgeable in all spheres. Make sure your website, social media accounts and freelance profiles are up to date and well-written. Don’t have a website? Here’s why you should have one. Showcase your work, the skills that you have or the idea that you are selling. Make sure your appearance is professional (in person and online and that you communicate professionally at all times.  
• Have the work/knowledge to back up your assertions. If you define yourself as an entrepreneur you need to have sufficient knowledge and evidence that your product or idea will work. If you rely on your expertise, make sure it’s up to date and that you’re continually learning. Never forget that every client interaction can make a difference to how you’re perceived and the work that you’re offered.  

Ultimately, the best way to change perceptions is to be confident and proud in whatever you want to call yourself and ensure that your work speaks for itself. 

Don’t forget, however you want to define your self-employment status, if you’re looking for business space, take a look at our sites nationwide.