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The differences between freelancers and business owners can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 6-12 months to become a freelancer, becoming a business owner takes usually requires 4-6 years. Additionally, a freelancer has an average salary of $59,367, which is higher than the $50,934 average annual salary of a business owner.
The top three skills for a freelancer include customer service, web content and video production. The most important skills for a business owner are customer service, payroll, and financial statements.
| Freelancer | Business Owner | |
| Yearly salary | $59,367 | $50,934 |
| Hourly rate | $28.54 | $24.49 |
| Growth rate | 3% | 6% |
| Number of jobs | 2,088 | 107,663 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 52% |
| Average age | 38 | 44 |
| Years of experience | 12 | 6 |
A freelancer is a self-employed individual that provides services for multiple clients at one time and usually earns money on a per-job basis. Often known as independent contractors, freelancers usually set their schedules while running their own business and have a flexible lifestyle. They have the liberty to choose their clients that may be less confined to specific markets or sectors. Freelancers usually find work within the creative industries such as graphic design, copywriting, or photography.
Business owners, also known as Entrepreneurs, are responsible for their company and brand's success. There are many areas of responsibility when you're a business owner, such as in the aspects of planning and budgeting, arranging finances and legal documentation, and even hiring the workforce essential for the business to grow. However, these responsibilities will vary according to how a business owner will uphold them. Moreover, building a business from the ground up requires dedication and a vision and mission for the brand.
Freelancers and business owners have different pay scales, as shown below.
| Freelancer | Business Owner | |
| Average salary | $59,367 | $50,934 |
| Salary range | Between $40,000 And $86,000 | Between $27,000 And $94,000 |
| Highest paying City | - | Seattle, WA |
| Highest paying state | - | Washington |
| Best paying company | - | BD |
| Best paying industry | - | Retail |
There are a few differences between a freelancer and a business owner in terms of educational background:
| Freelancer | Business Owner | |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 52% |
| Most common major | Graphic Design | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between freelancers' and business owners' demographics:
| Freelancer | Business Owner | |
| Average age | 38 | 44 |
| Gender ratio | Male, 47.7% Female, 52.3% | Male, 51.4% Female, 48.6% |
| Race ratio | Black or African American, 3.4% Unknown, 5.0% Hispanic or Latino, 10.6% Asian, 10.4% White, 70.2% American Indian and Alaska Native, 0.4% | Black or African American, 6.3% Unknown, 4.3% Hispanic or Latino, 15.5% Asian, 6.4% White, 67.0% American Indian and Alaska Native, 0.5% |
| LGBT Percentage | 13% | 10% |