48
IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY SELF-EMPLOYED INDEPENDENT ENTREPRENEURS THE NEW ERA WORKFORCE

IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY

SELF-EMPLOYED INDEPENDENT

ENTREPRENEURS THE NEW ERA WORKFORCE

Page 2: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 3: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers
Page 4: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers
Page 5: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers
Page 6: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

PARTICIPATION IN ONLINE PLATFORM ECONOMY

(cumulative percentage)

Source: JPMorganChase

GROWTH OF ON-DEMAND ECONOMY

Page 7: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY

Steve King

Emergent Research

Emergent Research

Page 8: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 9: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 10: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 11: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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)

Page 12: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 13: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Emergent Research

Page 14: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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)

Page 15: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 16: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Emergent Research

Page 17: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Emergent Research

Page 18: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 19: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 20: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 21: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Workforce development

& the gig economy

July, 2019

Page 22: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 23: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Our mission is to equip people to benefit

from independent work and advocate for

an economy in which all workers thrive.

Page 24: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 25: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

11 partners

SFBA

10 partners

new since 2018

National

Nonprofits

Government

Higher Ed

Page 26: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Understanding Independent Work

Page 27: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 28: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Where do you typically go to find freelance work?

By the numbers

Page 29: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 30: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Opportunities andChallenges

Page 31: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 32: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 33: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

● 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

Page 34: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Strategies for Workforce Training Systems

Page 35: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

● 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...

Page 36: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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?

Page 37: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 38: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

● 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

Page 39: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

● 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

Page 40: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Ask for customized technical assistance from Samaschool!

● Facilitated strategic discussion

● Curated resources

● Action planning

Interested in next steps?

Page 41: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Questions and Wrap-up

Page 42: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

Contact Us:

[email protected]

Page 43: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 44: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 45: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

More than 85% of alumni reported being moderately to very satisfied with independent work.

$26

Trainee Results: 2017 Alumni Survey

Page 46: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 47: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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

Page 48: IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY › wp-content › uploads › 2019 › ... · Independent Workers are Business Builders • 24% hire an average 3.3 independent workers

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