What is light entrepreneurship?

Light entrepreneurship is for those who want to sell their skills as a service and try entrepreneurship on a small scale at the same time. In this article, we take a closer look at what light entrepreneurship is and what it involves.

Light entrepreneurship is an easy way into the world of entrepreneurship. It is, simply explained, self-employment without owning a business or a business ID. A light entrepreneur outsources billing and accounting a specialised billing service. In this case, the light entrepreneur only needs to focus on work and paying the bills.

Light entrepreneurship is, as the name suggests, an easy way to find employment and is particularly suitable for new entrepreneurs. Unlike a trading company, it provides an efficient platform for entrepreneurship without the bureaucracy and stress of accounting, invoicing and taxation.

While self-employment as an entrepreneur has become more common, invoicing services have also taken over in Finland. And no wonder, as it is a flexible and risk-free way to try your hand at entrepreneurship.

Me, a light entrepreneur?

Do you have a skill or idea you'd like to sell? Are you new to entrepreneurship or would you like to do it, for example, alongside your day job? Are you otherwise interested in entrepreneurship? If yes, then light entrepreneurship might be for you.

Being a light entrepreneur is risk-free, as it is free to register as a user of the billing service. You only pay for it when you invoice the work you do. So if you don't invoice, you don't pay. It's that simple!

Light work is particularly popular in the cultural sector, but it can be used in almost any sector. Even during your studies, you can take advantage of the opportunity to try it out and see what it's like to work in your own field. However, it is not suitable for everything, as it is not suitable for sectors that require a licence. This is the case, for example, in the health and taxi sectors.

Above all, light entrepreneurship is easy and practical the way to be an entrepreneur. Becoming a light entrepreneur does not require a ready-made network of clients or a fully developed business idea. Light entrepreneurship provides an excellent gateway to the secrets of entrepreneurship.

What are the benefits of being a light entrepreneur?

As noted, light business relies on the help of a billing service. Above all, an outsourced service gives the entrepreneur more time to concentrate on his work and develop his own business.

Light entrepreneurship provides an easy and inexpensive way to start a business. The start-up costs of a light entrepreneurship are exactly zero euro, and there is no need a large amount of start-up capital to get started.

As a light entrepreneur, you can work in many different areas without worrying about accounting, financial management and paying business taxes. You can start and stop a light business at any time.

Finnish billing services are generally very reliable. Not once has a situation arisen where a customer has had problems getting money from the company providing the invoicing service.

What are the disadvantages of light entrepreneurship?

Light entrepreneurship is not just about dancing on the roses, where the entrepreneur wraps up the money and the billing service humbly does its job. Even the companies that do the billing have to make a profit from somewhere, as reflected in the percentage of revenue that is billed to the billing service. The percentage of a light entrepreneur's income that the billing service charges depends on the service provider, but generally it is around 5%.

This means that the net income received will be slightly reduced. But the amount is ultimately negligible, given the time saved that would otherwise be spent on billing and bureaucracy.

Light entrepreneurs lack some benefits that belong to businesses. A light entrepreneur is not eligible for business financing for equipment purchases because it is not a business. Similarly, as a light entrepreneur, you cannot get start-up money to start a business. However, this is possible later if you become a full-time entrepreneur with a trading name or limited company.

Light entrepreneurship is also not suitable where the activity is subject to authorisation. Despite these negative aspects, light entrepreneurship is a very practical form of entrepreneurship that gives more than it takes.

What are the insurances for the light entrepreneur?

There are few compulsory insurances, but depending on the activity, it is worth considering the most useful insurance policies for themselves. For example, a physiotherapist should consider statutory patient insurance, while a graphic designer can manage without it.

YEL insurance is compulsory for light entrepreneurs if certain conditions are met. As insurance, it is the main provider of social security and pension cover for the self-employed. YEL insurance is required when:

• Entrepreneur is aged 18-67
• Employment income from business activities of at least €8 575,45 per year (2023 figure)
• Business will continue for a minimum of four months

In addition, motor insurance is compulsory if vehicles are used for business purposes. The list of voluntary insurances is extensive and allows the light entrepreneur to choose the most suitable insurance for him or her. It is possible to take out accident insurance, disability insurance, legal expenses insurance and light entrepreneur's liability insurance, among others.

How to become a light entrepreneur?

The first step to starting a light business is to price your work. It's worth asking more experienced people for help, and almost invariably the customer service team at the billing service will be able to help. It is then time to find the most suitable billing service.

When comparing billing services, you should pay attention to the price of the service and what exactly you get for your money. When competing for a billing service, it is not advisable to choose the cheapest option. It may be that the dog is buried there. The cheapest billing services may, for example, include narrower insurance or obscure hidden charges - which is not desirable at all.

When choosing a billing service, you should pay attention to the level of service, pricing and the image of the service provider. If the billing service as a whole or the services they offer seem vague or too good to be true, it probably is.

But fortunately, Finnish billing services are almost universally reliable, and mischievous surcharge companies are in the minority. The most important thing when competing for a billing service is to find the service that suits you best, both in terms of price and service.

Towards light entrepreneurship!

Starting a light business is not binding and is as risk-free as it can be. The threshold is so low that you can start even if you are not yet sure of your business model.

Starting a light business is free of charge and you can get out of it at any time. And not even YEL contributions hassle at the beginning, but only when the conditions are met.

Light entrepreneurship is the best and easiest way to earn extra income, find a new career or discover that a business idea works and leads to even greater income.

Kevyesti.fi supports you throughout your journey

By reducing the obligations on entrepreneurs, we want to increase their innovation, imagination and freedom. In essence, this is what light entrepreneurship is all about - the freedom to realise your own ideas and express your own innovation in the way you want. At Kevyesti.fi, you avoid the pitfalls of light entrepreneurship and get the chance to be the best version of yourself.

We'll make sure your finances run smoothly, so you can focus on what you do best. We're with you every step of the way, and can be contacted at any time with a low threshold. Registration is free, and you only pay a service fee when you make a sale.