Post on 27-Jun-2020
IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY
SELF-EMPLOYED INDEPENDENT
ENTREPRENEURS THE NEW ERA WORKFORCE
WHO IS IN THE NEW ERA WORKFORCE
• Independent Worker
• Self-employed
• Gig worker
• Part/Full/Contractor/On-Call
36% = 70 million American workforce
are engaged in independent work
#FutureofWork
PARTICIPATION IN ONLINE PLATFORM ECONOMY
(cumulative percentage)
Source: JPMorganChase
GROWTH OF ON-DEMAND ECONOMY
IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY
Steve King
Emergent Research
Emergent Research
0
10
20
30
40
50
60
70
80
Total Full-Time Part-Time Occasional Irregular
15.3
Number of Independent Workers by Type (in millions)
70
10.8 15
29
Emergent Research
Full-Time Independent Worker Demographics
Millennials, 37%
Gen X , 28%
Boomers , 35% Boomers
33%
2018 2019
Millennials 38%
Gen X, 29%
Male = 54% Female = 46%
Emergent Research
Most Independent Workers Chose to be Independent
67%
63%
65%
59%
58%
53%
56%
57%
55%
7%
8%
9%
10%
9%
13%
14%
13%
15%
26%
26%
26%
30%
32%
34%
30%
30%
30%
2019
2018
2017
2016
2015
2014
2013
2012
2011
Employment Choice
My choice completely A result of other factors beyond my control A combination of both
Independent Workers are Satisfied with Independent Work
• 13% responded 7, so roughly 9 out of 10 satisfied or highly satisfied
1%
2%
2%
2%
2%
3%
3%
3%
4%
23%
26%
24%
33%
34%
34%
33%
27%
38%
76%
72%
74%
65%
63%
63%
64%
70%
58%
2019
2018
2017
2016
2015
2014
2013
2012
2011
Overall Satisfaction as an Independent Worker
Very Dissatisfied (1-3) Neutral (4-7) Very Satisfied (8-10)
Most Independent Workers Plan to Stay Independent
2019 2018 2017 2016 2015 2011
Continue working as an independent worker 70% 64% 61% 63% 58% 63% Build a larger business 12% 12% 14% 15% 16% 11%
Seek a permanent full-time job 7% 11% 10% 13% 15% 18%
Seek a permanent part-time job 1% 3% 4% 2% 2% 2%
Retire 7% 6% 6% 4% 5% 3%
Stop working altogether 2% 3% 1% 1% 2% 1%
Illustrates reluctants leaving and new
reluctants not entering
Emergent Research
Full-Time Independent Worker Earnings on Par With Those With Traditional Jobs
• Average earnings for full-time independents is about $68,000
• 20% earn more than $100,000
Emergent Research
18%
14%
16%
16%
66%
70%
Full-Time TraditionalJob Holders
Full-TimeIndependents
Overall Satisfaction With Income Earned From Independent Work
Dissatisfied (1-2) Neutral (3) Satisfied (4-5)
Independent Workers are Business Builders
• 24% hire an average 3.3 independent workers as contract workers
• 12% plan on growing their business and adding employees
• According to the Kaufmann Foundation, around half of U.S. small businesses started as a solopreneur business
Emergent Research
Emergent Research
Emergent Research
Independent Workers Add Value to Their Communities
• Independent workers are a major source of new employer businesses. – They also build virtual employer small businesses by hiring other
independents
• Independent workers provide local employers access to a flexible, on-demand workforce.
• Independent workers provide a pool of potential full-time hires.
• Through cross organizational networking and social activities, independent workers foster new ideas and enhance innovation across their clients and communities.
• Independent workers can source work globally.
Emergent Research
Building an Independent Worker Ecosystem
• Local government partners with the independent worker community – Grassroots involvement by independent workers required
• Create independent worker hubs that provide networking opportunities and events targeted at independent workers and organizations that work with them. – Coworking spaces, accelerators, community centers, libraries, coop art
spaces
• Engage anchor institutions
• Involve the broader community
Emergent Research
The Five C’s of the Entrepreneurship Ecosystem
The Business Owner
Capital
Financial Resources
Coaching-Training Entrepreneur
and Owner Skillset
Connec-tion
Resource & Relationship
Network
Culture community perception
and support
Climate Regulation, Economic
Development and Policy
#FutureofWork
Workforce development
& the gig economy
July, 2019
1. Opportunities and challenges of the gig economy
2. Independent work as a strategy to reconnect job seekers to employment
3. Adapting training systems to support independent workers
Agenda
Our mission is to equip people to benefit
from independent work and advocate for
an economy in which all workers thrive.
Approach
We work with partners to equip their beneficiaries to access and succeed at gig work
as a source of supplemental income and/or as a step towards a new career.
Research & Development
Curriculum Development &
Training
Data Analysis Policy
Approach
11 partners
SFBA
10 partners
new since 2018
National
Nonprofits
Government
Higher Ed
Understanding Independent Work
of working Americans earned at least some income from freelancing in 201736%
50% of all working adults are likely to freelance in some capacity sometime in the next 5-10 years
of employers expect to use more independent workers by 202040%
The freelance workforce grew 3x faster than the U.S. workforce overall since 2014
Freelancing on the rise
Where do you typically go to find freelance work?
By the numbers
Care Services
Babysitting & Childcare
Cosmetology & Beauty
Dog Walking & Sitting
Massage Therapy
Care Aid
Tutoring & Teaching
IT, Design, & Development
Web Design
UI/UX Design
Quality Assurance Testing
Graphic Design
Computer Programming
IT Technician & Tech Support
Marketing
In-Person Marketing & Events
Social Media Marketing
Online Advertising & SEO
Lead Generation
Digital Marketing & eCommerce
Trades
Plumbing
Landscaping
Electrical Work
Handyman
Writing & Translation
Writing & Editing
Typing & Transcription
Translation
Service & Hospitality
Hotel & Hospitality
Catering & Event Staff
Food Service / Restaurants
Opportunities andChallenges
Opportunities in the gig economy
Lower barriers to entry than many traditional jobs
Reconnect to work after a period of unemployment
Short term jobs allow for testing Career paths
Flexible schedule allow for familyAnd education responsibilities
Provides public record of ability to execute jobs
Lavell RussellEarned $30-50/hour while launching his business
Type: Delivery, driving, errands on Taskrabbit & Uber
Kristy O’BrienWanted to get away from her desk job and be her own boss
Type: Airbnb management through referrals & networking
Chih ChenGained work experience during IT training program that helped him secure a full-time job
Type: IT on Fieldnation
Anna HuangTransitioned from working in restaurants to cleaning, increasing her hourly rate from $9 to $20+ per hour
Type: Cleaning on Taskrabbit
How Samaschool alumni use freelancing
● Lack of benefits and worker protections
● Income volatility
● Communication may be difficult for English language learners
● Harder to acquire jobs without a mobile phone with data plan
Challenges in the gig economy
Strategies for Workforce Training Systems
● Connect unemployed individuals
to income and real-world work
experience relatively quickly
● Meet WIOA goals
Independent work can help systems...Independent work can help systems...
Intro to Freelancing1
Preparing to
Freelance2
Succeeding on the
Job3
Managing Life as a
Freelancer4
Independent work
pros and cons
Independent work v.
traditional jobs
Choosing a work
category
Personal branding &
pricing
Where to find work
(online and offline)
Assessing & applying
for gigs
Customer service Time management Safety
Contracts Taxes Goal setting
What do independent workers need to know?
How might training be integrated into the public system?
Virtual Classroom: interactive webinar format led by
Samaschool instructor
Online Course: available 24/7, and can be completed
at a student’s own pace
In-person options also available in San Francisco
● Occupational sectoral partners
● Access points (empower-the-advisor)
● Online, self-paced training
Case studies: Workforce Development Boards
● Youth career explorations activities
● Access points (empower-the-advisor)
● Online, self-paced training
● Domestic workers training
● In-person
● Webinars, toolkits (e.g., how to prepare for the
gig economy as a city leader), and promoting
stories about cities that have made progress in
this area
● City Summit conference November 20-23 in San
Antonio
Expanding to more cities
● Youth and adults training
● Virtual classrooms
● Gig economy entrepreneurs
● Most likely virtual classrooms
Ask for customized technical assistance from Samaschool!
● Facilitated strategic discussion
● Curated resources
● Action planning
Interested in next steps?
Questions and Wrap-up
Contact Us:
adrouet@samaschool.org
2017 Trainee Demographics Testimonials
“It opened up a new avenue for employment
possibilities and helped me understand the
pros and cons of it very well.”
“...The information is really valuable and with it,
I will be able to accelerate my professional
progression.”
“I think gig work is great to make some extra
money and make life a little easier.”
Age: 51% Young Adults (18-24)
Ethnicity: 81% minority
Household income:
50% <$24K
Unemployed: 58%, avg. 9 mos
Samaschool Trainee Overview
NYC SF Bay Area
Samaschool trainees who engaged in independent work earned, on average, $1,800/month from independent work.
Their average hourly earnings were on par with local living wage rates.
$26
Average Gross Hourly EarningsCompared to Local Living Wage
$16
$20
$16
$26
18%
28%
Share of Income From Independent Work
71%
Trainee Results: 2017 Alumni Survey
More than 85% of alumni reported being moderately to very satisfied with independent work.
$26
Trainee Results: 2017 Alumni Survey
Virtual classrooms are interactive webinar-based classes
delivered live by an expert Samaschool instructor.
Virtual classrooms model
Text chat Polls and Q&A Pre & post work
Features
Access live from any location or device; no downloads
All registrants receive recording regardless of attendance
Easy registration and email reminders
Detailed engagement reporting & analytics
Sample cohort schedule
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
31 1
Session 1
2 3
Session 2
4 5 6
7 8
Q&A coaching session
9 10
Guest Speaker
11 12 13
14 15 16
Session 1 makeup
17 18
Session 2 makeup
19 20
21 22 23
Q&A coaching session
24 25
Q&A coaching session
26 27
28 29 30 1 2 3 4