As an individual with an entrepreneurial mindset, you may be exploring various options to start your own business or work independently. One of the options that have gained popularity in recent years is light entrepreneurship. In this article, we will explore what light entrepreneurship is, how it works in Finland, and whether it is a good option for you.

WHAT IS LIGHT ENTREPRENEURSHIP?

Light entrepreneurship refers to a new way of working, which allows individuals to work independently without the need to register a company. It is a form of self-employment where an individual can provide services as a freelancer or consultant without all the administrative hassle.

In this arrangement, the light entrepreneur is an independent worker, and the clients pay for their services. The light entrepreneur is responsible for their own invoicing, taxes, and social security contributions. This is a good option for someone who wants to try out a business idea alongside full-time employment or studies. 

As a light entrepreneur, it means that your side business is just that, a side business. It is not your main, full-time wage gainer. Then you would be a full-time entrepreneur. As a light entrepreneur, you are also not eligible for a start up grant. 

HOW DOES IT WORK IN FINLAND

Light entrepreneurship has gained popularity in Finland in recent years due to its flexibility and ease of use. The Finnish government has also introduced legislation to encourage this form of working. In Finland, light entrepreneurship is known as "kevytyrittäjyys" and is regulated by law. Anyone in Finland can work as a light entrepreneur regardless of their nationality, as long as they have a valid personal identity code.

As a light entrepreneur in Finland, you can provide various services such as consulting, design, marketing, programming, or work with services such as Freska, Wolt or Foodora. You get paid for your work through an invoicing agency. Sometimes, you can register your light entrepreneurship business as a limited liability company or private trader. However, most don't go this route as it requires some initial capital or filling out a lot of paperwork. 

BENEFITS OF LIGHT ENTREPRENEURSHIP

Light entrepreneurship has several benefits that make it an attractive option for many individuals. Here are some of the benefits:

• Easy to start: Unlike setting up a company, light entrepreneurship is easy to start. You do not have to worry about registering your business or dealing with the legal requirements of setting up a company. All you need is a personal identity code and a client.
• Flexibility: As a light entrepreneur, you have the flexibility to work for multiple clients simultaneously. You can also choose when and where you want to work. This gives you the freedom to balance your work and personal life.
• Lower costs: Light entrepreneurship is cost-effective as you do not have to worry about the costs associated with setting up and running a company. You only pay a small fee to the service provider who handles your invoicing and other administrative tasks.
• No fixed-term contracts: Unlike traditional employment, light entrepreneurship does not require fixed-term contracts. You can work with your clients on a project-by-project basis, giving you more control over your work.
• Tax benefits: As a light entrepreneur, you can deduct various expenses related to your work, such as travel expenses, from your taxes. This can help you reduce your tax burden and save money.

SHOULD YOU PURSUE LIGHT ENTREPRENEURSHIP?

Whether you should pursue light entrepreneurship depends on your personal circumstances and preferences. Here are some factors to consider:

• Skills and expertise: As a light entrepreneur, you need to have a specific skill set and expertise to provide high-quality services to your clients. If you have a specialized skill set that is in demand, then light entrepreneurship can be a good option for you.
• Financial stability: Light entrepreneurship does not offer the same level of financial stability as traditional employment. You may have to deal with fluctuations in income, and you will be responsible for your own taxes and social security contributions. This is why it's smart to have a main source of income and your side hustle. 
• Administrative tasks: While light entrepreneurship is easy to start, you still have to deal with administrative tasks such as invoicing and bookkeeping. If you do not enjoy administrative tasks, then light entrepreneurship may not be the best option for you. You can pay for someone to handle these for you, but it can be expensive.

CONCLUSION 

Light entrepreneurship is a flexible and cost-effective option for individuals who want to work independently. It provides the freedom to work for multiple clients and offers tax benefits. However, it also requires specific skills and expertise.

If you are considering light entrepreneurship, it is important to do your research and understand the legal and financial aspects of this form of working. You can consult with a tax expert or an accountant to help you navigate the tax and social security obligations of pursuing this type of employment. 

Furthermore, it is essential to choose a reliable service provider who can handle your invoicing and administrative tasks efficiently. There are several service providers in Finland who specialize in light entrepreneurship, and you can choose the one that best suits your needs.

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