What Denmark can learn from the Swedish freelance market
Freelancing's image problem
The story is almost always the same when it comes to freelancing (and its close cousin, gig work): uncertain income, no rights, no future. It's the image of the bike delivery boy or the Uber driver struggling to make ends meet.
But what if that story is only part of the truth?
A new scientific study from Stockholm University, published in the renowned journal Journal of Vocational Behavior, questions the conventional wisdom. The researchers followed 26 freelancers employed in Swedish umbrella companies – companies that operate in exactly the same way as Factofly in Denmark – and found something remarkable: most people thrive.
They have created a way of working that gives them meaning, freedom and career sustainability. Not despite the hybrid model, but because of it.
Sweden is far ahead, but Denmark is on its way
In Sweden, the umbrella company model is not a niche phenomenon. There is 30-40 providers in the market, and around 30,000 freelancers uses the model every month. 70% of them are affiliated with a single company – a sign of how consolidated and mature the market has become.
The model is anchored in legislation and recognized as a legitimate path between traditional employment and self-employment.
In Denmark we are not there yet. The model is younger, awareness is less widespread, despite the infrastructure being in place. A broad social legitimization of the model is exactly what Factofly is working to change.
The Swedish study is therefore interesting not just as research, but as a look into the future of Danish freelance culture.
It shows what is possible when the model matures and becomes a natural part of the labor market.
Forget the food delivery picture
One of the study's most interesting findings is who actually uses umbrella companies.
The notion of the typical freelancer as a young, low-educated person with no other options simply doesn't hold up.
Among them 26 participants you find journalists, photographers, psychotherapists, craftsmen, TV producers, a captain at sea and a dog trainer. The majority have a higher education, and many have decades of professional experience behind them.
The average age in the study is 53 years old – but the researchers themselves point out that this reflects their selection method rather than the industry as a whole.
They directly call it a limitation and call for future research that compares younger and older users. In Denmark we see a broader age profile, and the model is also widely used by younger professionals who want flexibility early in their careers.
One of the participants puts it bluntly:
“This is not the gig economy. It's not the same. It's when you bike deliver food to someone. What I do, it's a profession. I'm a project manager for something. It's not a side job or a summer job, it's a profession.”
They didn't choose the umbrella company because they were desperate. They chose it because it suited them. It's an image many Factofly users will recognize.
Three reasons why the model works
The study identifies a number of patterns across the very diverse participants, three of which stand out in particular.
1. The freedom to shape one's own working life
Many of the participants describe previous jobs as limiting. Not because the work itself was bad, but because the framework did not suit them. Fixed meeting times, predictable weekdays, overtime without control.
One participant describes it directly:
“I have tried being a wage slave in the truest sense of the word. After five years in that job, I felt like I couldn't take it. It was better to take control of the situation myself before my body did it to me.”
The study shows that 10 out of 26 participants use the model as their primary income. It is not a stopgap solution, but an active choice.
2. Focus on what you are good at – outsource the rest
A common theme in the study is what the researchers call “liberation from independence.” Many participants are effectively self-employed – they find their own clients, set their own prices, and do the work themselves – but don't want everything that comes with running a business.
VAT, tax, invoicing, accounting. One participant puts it this way:
“And all the other, boring aspects I would have had as a business owner – I cut that out. Even though I pay a little for it, it’s definitely worth avoiding.”
Another goes even further:
“Even if someone says I'm losing a lot of money this way – yes, it's very possible. But I'm buying myself peace of mind.”
3. A stepping stone, not a trap
The model offers the opportunity to try things out without committing. One participant describes it simply:
“With umbrella company employment, it’s just so easy to test. I might have an idea that it would be cool to do one or the other. Well, try it. Take on some tasks, send some invoices, and see how it feels. And if it doesn’t feel good – then stop. And if it feels good? Then keep going.”
16 out of 26 participants in the study combine freelance work with either salaried employment, pension or both. Many use it to add tasks they are passionate about but cannot make into full-time jobs, or to extend an active working life after official retirement age.
The honest part: It's not for everyone
The study wouldn't be credible if it only told the positive side. And it doesn't.
Participants are open about the fact that the model does not offer the same security as traditional employment. Income is unpredictable. Social security is not fully comparable. One participant puts it bluntly:
“Compared to a permanent position, this is quite precarious. You don’t do it for security.”
Interestingly, this is not surprising to them. They have chosen the model with their eyes open and have taken active steps to compensate: building up a buffer, keeping expenses down, combining with other work or retirement. It is a conscious strategy.
The participants themselves are also honest about the fact that the model is not for everyone – neither all people nor all industries.
Places that require long-term continuity, like schools or hospitals, are not designed to be filled with freelancers. It's a nuanced view that shows that people who use the model well also understand its limitations.
What awaits Danish freelance culture?
The research from Sweden gives us more than just a snapshot, it gives us a benchmark for where Denmark is heading.
In Denmark, the infrastructure is actually in place. Through Factofly, Danish professionals can today invoice customers, get paid salaries and handle taxes and social security – just like their Swedish colleagues have been able to for years. The technical and legal foundation exists.
The real gap is cultural.
In Sweden, the umbrella company model is socially legitimized. People know others who use it, talk openly about it and don't have to explain themselves. There is an established language for what it is, and a cultural acceptance that it is a real career choice, and not a gray area or a stopgap solution.
In Denmark we are not there yet. Many freelancers are still navigating the question “what do you actually do?” without a good framework to answer within.
The model is not widely understood, which means that even people who would benefit from it never consider it as an option.
That's the gap that needs to be closed. Not through more technology, but through more visibility, more conversations, and more professionals speaking openly about how they have built a working life on their own terms.
What does this mean for you as a freelancer in Denmark?
The research points to something we already see at Factofly: the model works best for those who have consciously chosen it and who know what they are exchanging for.
You get freedom, flexibility and the opportunity to focus on the work itself. You get rid of the administration. You can try new things without much risk.
On the other hand, it requires that you take responsibility for your own finances, build relationships with your customers, and be comfortable with things not being predictable from month to month.
Are you there? Then there is every reason to believe that you can create a way of working that is not only sustainable – but also meaningful.
At least that's what the research shows.
The study on which this article is based is called “"Under my umbrella? Gig workers' perspectives on career sustainability as employees in Swedish umbrella companies"’ and is published in the Journal of Vocational Behavior in 2025. It is written by Franziska Müller, Linda Weidenstedt, Claudia Bernhard-Oettel and Constanze Eib from Stockholm University and Stockholm School of Economics.
What Denmark can learn from the Swedish freelance market
Freelancing's image problem
The story is almost always the same when it comes to freelancing (and its close cousin, gig work): uncertain income, no rights, no future. It's the image of the bike delivery boy or the Uber driver struggling to make ends meet.
But what if that story is only part of the truth?
A new scientific study from Stockholm University, published in the renowned journal Journal of Vocational Behavior, questions the conventional wisdom. The researchers followed 26 freelancers employed in Swedish umbrella companies – companies that operate in exactly the same way as Factofly in Denmark – and found something remarkable: most people thrive.
They have created a way of working that gives them meaning, freedom and career sustainability. Not despite the hybrid model, but because of it.
Sweden is far ahead, but Denmark is on its way
In Sweden, the umbrella company model is not a niche phenomenon. There is 30-40 providers in the market, and around 30,000 freelancers uses the model every month. 70% of them are affiliated with a single company – a sign of how consolidated and mature the market has become.
The model is anchored in legislation and recognized as a legitimate path between traditional employment and self-employment.
In Denmark we are not there yet. The model is younger, awareness is less widespread, despite the infrastructure being in place. A broad social legitimization of the model is exactly what Factofly is working to change.
The Swedish study is therefore interesting not just as research, but as a look into the future of Danish freelance culture.
It shows what is possible when the model matures and becomes a natural part of the labor market.
Forget the food delivery picture
One of the study's most interesting findings is who actually uses umbrella companies.
The notion of the typical freelancer as a young, low-educated person with no other options simply doesn't hold up.
Among them 26 participants you find journalists, photographers, psychotherapists, craftsmen, TV producers, a captain at sea and a dog trainer. The majority have a higher education, and many have decades of professional experience behind them.
The average age in the study is 53 years old – but the researchers themselves point out that this reflects their selection method rather than the industry as a whole.
They directly call it a limitation and call for future research that compares younger and older users. In Denmark we see a broader age profile, and the model is also widely used by younger professionals who want flexibility early in their careers.
One of the participants puts it bluntly:
“This is not the gig economy. It's not the same. It's when you bike deliver food to someone. What I do, it's a profession. I'm a project manager for something. It's not a side job or a summer job, it's a profession.”
They didn't choose the umbrella company because they were desperate. They chose it because it suited them. It's an image many Factofly users will recognize.
Three reasons why the model works
The study identifies a number of patterns across the very diverse participants, three of which stand out in particular.
1. The freedom to shape one's own working life
Many of the participants describe previous jobs as limiting. Not because the work itself was bad, but because the framework did not suit them. Fixed meeting times, predictable weekdays, overtime without control.
One participant describes it directly:
“I have tried being a wage slave in the truest sense of the word. After five years in that job, I felt like I couldn't take it. It was better to take control of the situation myself before my body did it to me.”
The study shows that 10 out of 26 participants use the model as their primary income. It is not a stopgap solution, but an active choice.
2. Focus on what you are good at – outsource the rest
A common theme in the study is what the researchers call “liberation from independence.” Many participants are effectively self-employed – they find their own clients, set their own prices, and do the work themselves – but don't want everything that comes with running a business.
VAT, tax, invoicing, accounting. One participant puts it this way:
“And all the other, boring aspects I would have had as a business owner – I cut that out. Even though I pay a little for it, it’s definitely worth avoiding.”
Another goes even further:
“Even if someone says I'm losing a lot of money this way – yes, it's very possible. But I'm buying myself peace of mind.”
3. A stepping stone, not a trap
The model offers the opportunity to try things out without committing. One participant describes it simply:
“With umbrella company employment, it’s just so easy to test. I might have an idea that it would be cool to do one or the other. Well, try it. Take on some tasks, send some invoices, and see how it feels. And if it doesn’t feel good – then stop. And if it feels good? Then keep going.”
16 out of 26 participants in the study combine freelance work with either salaried employment, pension or both. Many use it to add tasks they are passionate about but cannot make into full-time jobs, or to extend an active working life after official retirement age.
The honest part: It's not for everyone
The study wouldn't be credible if it only told the positive side. And it doesn't.
Participants are open about the fact that the model does not offer the same security as traditional employment. Income is unpredictable. Social security is not fully comparable. One participant puts it bluntly:
“Compared to a permanent position, this is quite precarious. You don’t do it for security.”
Interestingly, this is not surprising to them. They have chosen the model with their eyes open and have taken active steps to compensate: building up a buffer, keeping expenses down, combining with other work or retirement. It is a conscious strategy.
The participants themselves are also honest about the fact that the model is not for everyone – neither all people nor all industries.
Places that require long-term continuity, like schools or hospitals, are not designed to be filled with freelancers. It's a nuanced view that shows that people who use the model well also understand its limitations.
What awaits Danish freelance culture?
The research from Sweden gives us more than just a snapshot, it gives us a benchmark for where Denmark is heading.
In Denmark, the infrastructure is actually in place. Through Factofly, Danish professionals can today invoice customers, get paid salaries and handle taxes and social security – just like their Swedish colleagues have been able to for years. The technical and legal foundation exists.
The real gap is cultural.
In Sweden, the umbrella company model is socially legitimized. People know others who use it, talk openly about it and don't have to explain themselves. There is an established language for what it is, and a cultural acceptance that it is a real career choice, and not a gray area or a stopgap solution.
In Denmark we are not there yet. Many freelancers are still navigating the question “what do you actually do?” without a good framework to answer within.
The model is not widely understood, which means that even people who would benefit from it never consider it as an option.
That's the gap that needs to be closed. Not through more technology, but through more visibility, more conversations, and more professionals speaking openly about how they have built a working life on their own terms.
What does this mean for you as a freelancer in Denmark?
The research points to something we already see at Factofly: the model works best for those who have consciously chosen it and who know what they are exchanging for.
You get freedom, flexibility and the opportunity to focus on the work itself. You get rid of the administration. You can try new things without much risk.
On the other hand, it requires that you take responsibility for your own finances, build relationships with your customers, and be comfortable with things not being predictable from month to month.
Are you there? Then there is every reason to believe that you can create a way of working that is not only sustainable – but also meaningful.
At least that's what the research shows.
The study on which this article is based is called “"Under my umbrella? Gig workers' perspectives on career sustainability as employees in Swedish umbrella companies"’ and is published in the Journal of Vocational Behavior in 2025. It is written by Franziska Müller, Linda Weidenstedt, Claudia Bernhard-Oettel and Constanze Eib from Stockholm University and Stockholm School of Economics.
