Final answer:
A self-employed individual who provides services to others is known as a freelancer. Freelancers offer their services on a project basis, unlike entrepreneurs who start and manage businesses.
Step-by-step explanation:
An individual who is self-employed and provides services to others is known as a freelancer. Freelancers are independent contractors who work on a variety of projects for different clients, rather than being employed permanently by a single company. As opposed to an entrepreneur who often starts a business and takes on the risk associated with it, freelancers typically sell their services to businesses as needed. Similarly, sole proprietorships are simple business structures where one individual owns and runs the business, responsible for all debts and profits. This type of business does not create a separate legal entity from the owner.
On the other hand, an entrepreneur is often associated with starting new businesses, taking on risks, and introducing novel products or services into the market. Entrepreneurs like the person conceptualizing "a better mousetrap" are central to the free market economy, as they drive innovation and meet consumer demands. Therefore, among the options provided, the term that best describes a self-employed individual providing services is a freelancer (a).