The Growth Of Freelancing

THE RETURN OF THE FREELANCER

IN THE ECONOMY

© J.A. van den Born

THE FREELANCER IS OLDER THAN THE WAY TO ROME

IN THE MIDDLE AGES ENTREPRENEURS STARTED ORGANIZING THEMSELVES IN GUILDS

TO ENSURE QUALITY CONTROL, INNOVATION AND EDUCATION

BUT IN THE 16TH CENTURY ECONOMIES OF SCALE

STARTED TO KICK IN

LEADING TO LESS SELF-EMPLOYMENT

WITH INDUSTRIALISATION MOST PEOPLE LOST THEIR CRAFT AND THEIR SKILLS

AND POWER WENT TO THE CAPITALIST

LABORERS STARTED UNIONS IN THE

BEGINNING OF THE 20TH CENTURY

ECONOMIES OF SCALE LED TO THE ARRIVAL OF THE MODERN ORGANIZATION

NEW COMPLEX ORGANIZATIONAL STRUCTURES EMERGED

AND FREELANCERS AND OTHER SELF EMPLOYED PROFESSIONALS SLOWLY DISAPPEARED IN THE ECONOMY

SINCE THE EARLY ’90S THE NUMBER OF

FREELANCERS IS GROWING AGAIN (AND FAST)

BECAUSE OF TECHNOLOGY THE FREELANCER

DISAPPEARED, AND BECAUSE OF

TECHNOLOGY THE FREELANCER WILL

REEMERGE

INTERNET AND MODERN COMMUNICATION

TECHNOLOGY HAVE FACILITATED THE SEARCHING

AND FINDING OF THE RIGHT PROFESSIONAL SKILLS

THIS ALL HAPPENED IN THE LAST 20

YEARS

AND THE ARRIVAL OF E-COMMUNITIES IS

JUST STARTING TO HAPPEN

THE ARRIVAL OF STANDARDTECHNOLOGIES

MAKES IT EASIER TO SWITCH BETWEEN

EMPLOYERS

TECHNOLOGY IS CHANGING THE VERY HEART OF THE ECONOMY

NEW PROFESSIONS EMERGE IN WHICH INNOVATION AND

CREATIVITY ARE KEY

BUT WORK IS PERFORMED BY TEMPORARY TEAMS

WORKING TOGETHER IN PROJECTS

... THE PROFESSIONAL IS BECOMING MORE

IMPORTANT THAN THE MANAGER

BECAUSE PERSONAL KNOWLEDGE IS RAPIDLY

BECOMING THE SOURCE OF COMPETITIVE ADVANTAGE

AND ORGANIZATIONS ARE BECOMING SMALLER AGAIN

BECAUSE OF THE LACK OF ECONOMIES OF SCALE IN THE

KNOWLEDGE BASED SERVICE ECONOMY

FREELANCERS ARE HAPPIER THAN

EMPLOYEES

AND THE ECONOMY BENEFITS FROM MORE INNOVATION

MORE AGILE AND FLEXIBLE

THE VARIETY OF ALL THOSE SMALL

ENTREPRENEURS

IS ALSO MUCH MORE INTERRESTING THAN ALL THOSE

LARGE CORPORATIONS

AS INDIVIDUAL PERFORMANCE IS THE ULTIMATE YARDSTICK IN

THE KNOWLEDGE ECONOMY

WHETHER YOU ARE AN FREELANCER OR AN EMPLOYEE

AND BECAUSE EMPLOYERS ARE SWITCHING FROM OLD

HIERARCHICAL STRUCTURES...

...THE DIFFERENCE BETWEEN EMPLOYERS AND

FREELANCERS IS ALSO DISAPPEARING

...TO NEW AND FLEXIBLE NETWORK STRUCTURES...

LEADING TO ONE UNIFIED NETWORKECONOMY

WITH PLENTY OF LOOSE CONNECTIONS BETWEEN ACTORS WHO

COOPERATE ON A PROJECT BY PROJECT BASIS

AND EVERYONE IN THIS NETWORK IS AN

ENTREPRENEUR

BUT IS THIS AN IDYLLIC WORLD?

FREELANCERS HAVE MORE STRESS

THE AVERAGE INCOME OF FREELANCERS IS LOWER THAN

THAT OF EMPLOYEES

MANY FREELANCERS ARE NOT INSURED

AND BARELY SAVE FOR RETIREMENT

AND THE FREE MARKET IS NOT ALWAYS THE OPTIMAL

SOLUTION

MANAGERS STILL MAKE MORE MONEY THAN

PROFESSIONALS

HOW CAN THIS ALL BE TRUE?

THE FREELANCER HAS TO MAKE IMPORTANT DECISIONS

IN A COMPLEX WORLD

MARKETS WITH PLENTY OF SUPPLY AND LITTLE DEMAND

ARE NOT HEALTHY

AND PROFESSIONAL FEES IN THESE MARKETS ARE VERY LOW

IN SOME MARKETS THERE IS ONE LARGE PLAYER

WHICH LEADS TO MONOPOLY ABUSE

INDIVIDUALS WITH LIMITED SKILLS WILL FIND IT HARD

TO EARN A LIVING

SOME FREELANCERS ARE ONLY INTERESTED IN

EARNING FAST MONEY

CAPITAL REMAINS AN IMPORTANT

PRODUCTION FACTOR

THE WORLD IS BECOMING LESS STRAITFORWARD

THE KNOWLEDGE ECONOMY NEEDS SPACE

AND VULNARABLE GROUPS NEED PROTECTION

THESE ARE NOT

CONFLICTING

GOALS

BECAUSE KNOWLEDGE CREATION NEEDS COOPERATION

AND A SENSE OF TRUST AND MUTUAL

UNDERSTANDING

PARADOX: IN THE KNOWLEDGE ECONOMY

INDIVIDUALS NEED TO OPERATE TOGETHER

DO NOT JUDGE THE KNOWLEDGE ECONOMY ON THE

NUMBER OF LARGE COMPANIES

...BUT ON THE SIZE AND INNOVATION POWER OF NETWORKS

FOSTER

DIVERSITY,

INNOVATION &

CREATIVITY

INVEST IN KNOWLEDGE