Many people use these terms interchangeably, but they are radically different. I’ve been both a freelancers and an entrepreneur at various times in my life. Both can be a good way to make a living, but the difference between the two  is important.

It has nothing to do with size, capital or available resources. It has to do with focus.

Freelances make money by performing a service directly — programming, web design, consulting, etc. If you are a freelancer, you make money when you work. When you stop working, you stop earning. Your primary concern is getting more work for your and your team to do.

Entrepreneurs, on the other hand, focus on building scalable systems. If you are an entrepreneur, most of your work will not generate much direct revenues. This is because once your activity starts generating revenues, your primary concern is how to remove yourself from the process.