Diverse entrepreneurship

The various forms of entrepreneurship

Being an entrepreneur doesn’t mean following the same path as other entrepreneurs. It can be full-time or part-time activities, performed alone or together, a traditional small business or a growth-oriented startup. For some people, being an entrepreneur is their calling and the main source of income, while for others it is a part-time activity in addition to paid employment or studies. Some might start as a light entrepreneur or freelancer, while others aim for rapid growth from the outset or continue existing business operations. In social entrepreneurship, some of the profits are directed at the business and the remainder towards promoting societal and environmental targets.

Different forms of entrepreneurship

Full-time entrepreneurship – The business activities are the entrepreneur’s main source of income. This requires that the company’s income covers all expenses and enables the entrepreneur to earn a personal income. Full-time entrepreneurship often requires greater investments and risk tolerance, but it also offers an opportunity to build the business in the long term.

Part-time entrepreneurship – Entrepreneurship is carried out alongside paid employment, studies or some other main income source. It can be a good way to try out a business idea and gradually build a customer base. Even if the business activities are part-time, the pricing must cover the costs and the entrepreneur’s own work input.

Startups – Startup companies aim for rapid growth and often try to renew the sector with a new idea, innovation or technology. Startups are typically associated with risk-taking, a scalable business model and applying for external funding, such as investments. Running a startup requires courage, patience and the ability to attract partners and financiers.

Partnership and team entrepreneurship – You can set up and run a company with other people. The team members share their expertise and resources and make decisions together, which can strengthen the company’s chances of success. In family-owned companies, partnership may also mean that family members work in the company. In this case, the family members may also be considered to entrepreneurs in terms of unemployment security on the basis of ownership and control.

Social entrepreneurship – A social enterprise can operate in any form of enterprise, and its activities are based on business activities that promote social or environmental targets. A company established for a social purpose may apply for the Finnish Social Enterprise Mark, which shows that it spends most of its profits on promoting this goal.

Light entrepreneurship – Light entrepreneurship means business-like activities without a business ID, usually through an invoicing service. This is not an official form of enterprise, but a practical way of managing invoicing and payments for people who want to run their business flexibly and on a small scale.

Note: The term light entrepreneurship is also often used in connection with entrepreneurs who have a Business ID (Business ID-based light entrepreneurship). Despite the name, this refers to operating as a sole trader (self-employed person with a Business ID).