Solo business ownership is on the rise. Independent workers have a projected growth of 3.6%, and no wonder why. With added work flexibility and high job satisfaction, solopreneurship is a tempting career path.

But if you’ve ever wondered how solopreneurs differ from traditional entrepreneurs, you’re not alone. There are a few common threads between them, as well as some key differences. Here’s what you need to know.

What Is a Solopreneur?

At its most basic level, the solopreneur definition is someone who founds and runs their own independent business alone. Unlike an entrepreneur, they perform their duties alone without the help of any co-founder or employees.

Of course, this isn’t to say that they don’t have to tackle some of the same issues entrepreneurs face. For example, both groups have similar options when it comes to saving for retirement. Furthermore, depending on the type of business they create, they may pay taxes using similar forms.

They also must secure their own health insurance. This can often be tricky for solopreneurs who are also struggling to manage their day-to-day operations alone. For short-term options, this great guide can help you decide your next steps.

Common Examples of Solopreneur Business Ideas

Entrepreneurs may work to guide their startup team with or without the support of a co-founder, but a solopreneur produces all of their own work.

For this reason, many solopreneurs are freelancers or consultants. Whether they act as virtual assistants, graphic designers, or accountants, they’ve created their own business—often a single-member LLC or sole proprietorship—to make it happen.

Solopreneurs vs. Entrepreneurs

There are a few key differences between entrepreneurship and solopreneurship:

Solopreneurs are workers running a one-man (or woman) shop. As a result, they cannot delegate any part of their responsibilities to others

Entrepreneurs hire and manage employees to carry out day-to-day business tasks

Solopreneurs offer services or products in a specific niche. On the other hand, entrepreneurs might have a team that offers a wider range of products or services

Solopreneurs are simply trying to live off their business. Entrepreneurs may want to expand and eventually sell their business empire for a profit

Solopreneurs often work remotely and need few business tools. Entrepreneurs may need a dedicated office for employees as well as physical production equipment

Some of these differences may seem minor, but taken together they can impact the inner workings of a solopreneur’s day-to-day lifestyle. The solopreneur tends to have simpler work requirements than the entrepreneur. This can make solopreneurship an attractive option for those wishing to strike out on their own.

Choosing the Right Career Path

With increasing numbers of professionals making the leap to solopreneurship, it’s likely that the term will only increase in usage and popularity as time passes.

As seen above, the mindset of solopreneurs has subtle differences from that of entrepreneurs. This means that knowing the distinction between the two can help you decide which path is right for you.

If you’re interested in learning more about the latest workplace and office trends, check out our other posts for more!