When the term "small business" is mentioned, many people are quick to think of physical structure, goods and services. However, in our digitalized world, there are lots of activities happening online than you can ever imagine.
Freelance business is one of the most sought after businesses in the world today. A study by Intuit revealed that freelancers could increase to a staggering 40% of the workforce by 2020.
Freelancers are indeed the unsung heroes of the economy.
Here are four highlights of the amazing contributions of freelancers to the growth of the American economy.
- Increasing the U.S. Workforce
There is nothing more soothing for a country whose productive workforce is significantly greater than the unproductive. This is especially true when the majority of the productive workforce is self-employed. This is what makes the America economy competitive globally.
Gone are the days when job applicants send their resume to dozens of companies and wait for a reply. This is because the rising freelance market across the United States shows young professionals are focusing on freelancing. The freelance workforce grew from 53 million in 2014 to 55 million in 2016 and currently represents 35% of the U.S. workforce. The freelance workforce earned an estimated $1 trillion this past year, representing a significant share of the U.S. economy.
- Changing the Traditional Workplace
Before now, work was believed to be done in offices. Employees working from 8 a,m, to 5 p.m. were actually regarded as those with a career path. However, freelancers have changed such belief.
A news release by Upwork shows that “perceptions of freelancing are changing. 59% of freelancers think the freelance job market has changed as compared to three years ago. Of these, 63% said perceptions of freelancing as a career are becoming more positive, and 60% said freelancing has become more respected as a career path. Nearly half (46%) of full-time freelancers raised their rates in the past year, and more than half (54%) plan to raise them next year. The majority of freelancers said that today, having a diversified portfolio of clients is more secured than having one employer.”
According to Deloitte’s 2016 Global Human Capital Trends study, 51 percent of global executives surveyed said their organizations plan to increase the use of flexible and independent workers in the next three to five years.
- Employment Generation
The U.S. Small Business Administration says that every day, they (small-business owners) are working to grow small businesses, create jobs, drive innovation, and increase America’s global competitiveness. Freelancers are great investors too. By raising adequate capital meeting their clients’ job assignments, they have the fund to invest in any sector of the economy
A lot of freelancers have diversified their income portfolios while building diverse freelance careers. The focus has shifted from one income source to ways to make extra money. This is one of the success stories from freelancing, and there is lot more.
- Contribution to National Income
There is no doubt that the activities of freelancers massively contribute to the U.S. national income. Studies show that within 10 years, the majority of U.S. workers will freelance —with millennial workers leading the way. An estimated 57.3 million Americans are freelancing and contributed approximately $1.4 trillion in freelance earnings to the U.S. economy last year. This is huge.
Freelancers are reliable professionals who can offer their services any day of the week. Just submit an offer and receive responses almost immediately. Then, just choose the best offer. Freelancers want to know that America supports them. “The more we know about Americans’ new ways of working, the better we can write policies and develop products and services to support them,” says Upwork CEO, Stephane Kasriel.
“Now’s the time for business leaders, policy makers and candidates alike to stand up and take notice of their potential influence and to start developing ways to help them overcome the most pressing issues impacting their lives,” says Sara Horowitz, Freelancers Union Founder and Executive Director.
A hearty round of applause to the entire freelancers in the world particularly in America. You may think your job is insignificant, yet it does significantly contribute to the U.S. economy.
Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.
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