What is light entrepreneurship? 10min

Light entrepreneurship is a form of work, where you are able to invoice the work you do, without having to form an official company or send your tax card to your clients. With the help of our FREE! services, light entrepreneurs can avoid the unnecessary bureaucracy and focus on the important: your work. Light entrepreneurs do not need a business ID so there won't be any running costs. Light entrepreneurship is not officially recognized by law since it's a kind of a hybrid, between entrepreneur and employee. You can be a light entrepreneur if you work as a freelancer, gig worker or contractor.

With other words, anyone can be a light entrepreneur, without exception! If you want to sell your expertise for a payment, light entrepreneurship will suit you perfectly. The best thing about light entrepreneurship is that you don't have to worry about the bureaucracy or the obligations of normal entrepreneurship with business ID’s. Light entrepreneurship is especially a great form of working, because it will suit any situation in life: you can be unemployed, a student, on parents leave or retired to be a light entrepreneur. Light entrepreneurship can be a full or part-time job. As a part-time light entrepreneur you can invoice your work along your full-time job. If you want to use your expertise and you don't have any plans on scaling your business up, light entrepreneurship is for you. Also if you have plans to grow your business and scale it up to be a large enterprise with hundreds of employees, with a large footprint on the society, FREE! light entrepreneurship is a safe way to test your business and to learn how to run it properly. Later on you can always educate yourself in the FREE! entrepreneur service.

As a light entrepreneur you can invoice as little as once a year, so having a full-time job is not an obstacle for light entrepreneurship. It's important to notice that you as a light entrepreneur will form a client relationship to your client, not an employment status. The client will give you a commission for a fee. A light entrepreneur doesn’t have a contract of employment with the client, so it's recommended to form a commission agreement that you as a light entrepreneur will commit to. The commission agreement will most likely include the terms of the work, invoice price and what this price includes - be sure to make an agreement with your client. The company that offers invoicing services for your work, for example FREE!, will not have an employer relationship with you either.

Establishing Client relationships are possible when few key conditions are met. These conditions are monitored by the Tax administration and The Central pension security institute. Employment relationship cannot be masked as Client relationship in any circumstance.

Client relationship identifications are:

  • The right to choose when and how much you will work
  • The client doesn’t have the right of direction, where the employer has right to supervise and lead the work
  • You can have many clients at the same time
  • Commission agreement
It's good to acknowledge that subcontracting will not suit all industries and fields of work. These fields might include works that require a permit, such as professional radio transmitter or electrical installations which require an electrical contracting permit.

Light entrepreneurship is especially popular with:

  • Creative works
  • Restaurant and tourism industry
  • Construction industry
  • Sales professionals
  • Consults and trainers
Minors can also work as light entrepreneurs.

Full or part-time entrepreneurship?

If you plan to scale your business, are insured by YEL, and you are unable to work full-time while working as a light entrepreneur, you are officially a full-time light entrepreneur. Your earned income doesn’t matter, only the working hours, when considering if you are a part-time or full-time light entrepreneur.

You are full-time entrepreneur when:

  • The time you spend working as a light entrepreneur prevents you getting a full-time job
  • You have plans to scale your business
  • You are YEL insured

You are part-time entrepreneur when:

  • You are able to have a full-time job while working as a light entrepreneur
  • You are employed as a light entrepreneur for less than 2 weeks at a time
  • You are just starting your light entrepreneurship carrier
  • You are not YEL insured

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