Similarity and difference: freelance and zzp as a concept

In the ever-changing environment of work and entrepreneurship, the terms zzp and freelance are often topics of conversation. Although we regularly use these terms interchangeably, there is a subtle but crucial difference between the two. When is freelance and when is zzp? We address the difference between freelance and zzp: we explore the characteristics, benefits and challenges that each form of self-employment presents.

ZZP: self-employed without staff

ZZP stands for self-employed without personnel. We use this term in the Netherlands to describe a specific form of self-employment. A zzp'er is an individual with a sole proprietorship in which the entrepreneur has no employees. This means that the zzp'er works independently and is responsible for all facets of his or her business.

Characteristics of zzp

Thus, a sole proprietor operates independently and thus is responsible for all business aspects, including administration, taxes and marketing. Since there are no employees, all tasks and responsibilities rest entirely on the shoulders of the entrepreneur himself. A freelancer also bears full entrepreneurial risk. This includes financial risks, such as profit and loss, as well as operational risks such as contractual obligations and responsibilities.

Freelance: flexible collaboration

In fact, a freelancer is also a zzp'er. Freelance usually refers to an employment relationship in which an individual is hired on a project basis for a specific task or assignment. Unlike zzp, which is thus a broader term, freelancing refers to the provision of specific services for a specific period of time.

Characteristics of freelancing

So we usually talk about freelancing when someone is hired for specific projects or temporary assignments. This can range from writing and design to programming and marketing. Freelance assignments often take place within an agreed period of time. Once the project is completed, the collaboration also ends unless there are further agreements. Freelancers often have multiple clients and work with different companies and organizations. This offers diversity in work and experience.

Advantages and challenges of zzp or freelance

So the difference in freelance and zzp is mainly in the context. Both involve self-employment, and with that comes benefits, but also challenges.

Challenges

• Financial risk: Bearing the full financial risk, especially in times of economic uncertainty, can create personal financial challenges. Since freelance work is often project-based, income can be uncertain, especially if there is no continuity between assignments.
• Limited scalability: Since freelancers typically work alone, scalability may be limited. Increasing business size may be more difficult without staff.
• No employee benefits: freelancers typically lack the benefits that traditional employees enjoy, such as health insurance and paid vacation days. For example, unlike salaried employees, freelancers also do not have an automatic retirement plan and must take care of this themselves.
• Acquisition and administration: As a freelancer, you have to acquire clients, draft contracts and perform administrative tasks yourself, which requires extra time and effort in addition to performing the actual assignments.

Advantages

• Autonomy: freelancers enjoy a high level of autonomy and freedom in managing their own business. Consider determining their own working hours and rates.
• Flexibility: The flexibility of freelance work also allows individuals to manage their own schedules and work from different locations.
• Ease of establishment: Setting up a self-employed business is generally easier compared to other business forms. There are fewer administrative requirements and formalities.
• Direct profit: As a sole proprietor, profits accrue directly to the entrepreneur. There are no shareholders or partners with whom profits must be shared.
• Diversity of assignments: Freelancers can enjoy a diverse work portfolio because of the flexibility to work with different clients and projects.
• Specialization: As an entrepreneur, you have the opportunity to specialize in specific skills or niches, which is attractive to companies looking for expertise in a particular area.

Find suitable zzp assignments

Now that you know the difference between freelance and zzp, you can conduct a focused search for an assignment. Want to learn more about how to best use Striive as a professional? Then contact us for the possibilities.