Issues arise as light entrepreneurship surges in Finland

Issues related to light entrepreneurship have become increasingly common in Finland. Over the past five years, the number of light entrepreneurs has nearly tripled, yet many are unaware of how this model differs from traditional employment. This ignorance can lead to abuses where companies shift business risks onto their workers to avoid costs.

Take the case of Aki Kämäräinen, who three years ago thought he was fortunate to land a job as a light entrepreneur at a grocery store in Hämeenlinna. He initially felt optimistic, billing €20 an hour plus VAT. However, as time went on, he discovered that the actual take-home pay was far less after deductions for social security, service fees, and taxes. Eventually, he received shocking reminders for unpaid pension contributions, revealing that he had underpaid significantly.

Kämäräinen calculated his effective earnings to be less than €10 per hour, prompting him to question the nature of his employment—was it genuine entrepreneurship or disguised labor? Officials from the Tax Administration and regional authorities indicated that ambiguities around light entrepreneurship are rising. Many cases involve individuals, particularly immigrants and younger workers, who are not fully aware of their status as entrepreneurs.

The growing trend of light entrepreneurship has also brought issues to sectors like customer service, where it might not fit well. Companies have been found employing foreign workers who mistakenly believe they are simply receiving payments through a billing service rather than engaging in entrepreneurial work.

The concept of light entrepreneurship remains misunderstood, leading to greater risks for workers. Authorities have noted that many arrangements that appear entrepreneurial are merely misinterpretations of employment. Kämäräinen’s findings ultimately led him to transition back to traditional employment, feeling more secure as a salaried worker while keeping the option of light entrepreneurship open for the future, provided he understands the implications.