One area of the gig economy that is finally starting to get attention is it expands the number of low friction, highly flexible work options.
By "low friction" we mean it's quick and easy to start earning money and it requires little or nothing in terms of an initial investment.
With most of the online gig platforms you can sign up and be earning money in just a few days or less.
Most also don't require upfront money to get started, although you do often need a asset of some sort (a car, a spare bedroom, etc.).
By "highly flexible" we mean you can work as little or as much as you want and when you want. This means you can work whenever works for you.
This type of work, which is mostly done part-time or occasionally, is very attractive to several large segments of Americans:
Those in need of supplemental income: As the recent government shutdown has highlighted, a lot of Americans live paycheck to paycheck.
One recent survey showed 54 percent of Americans say they would have trouble paying their bills if they were forced to go without more than two paychecks and 20% say they would have trouble if they missed one paycheck.
Most Americans also don't have strong financial reserves. According to the Federal Reserve, 40% of Americans say they cannot cover a $400 emergency expense, or would do so by borrowing or selling something.
So if faced with a financial hardship, people often need to generate income quickly. This makes the working in the gig economy attractive.
In fact, 20% of the online work and talent platform users we surveyed reported they turned to online gig work due to a financial hardship. Recently furloughed government workers did the same.
But it's not just those with financial hardships that need supplemental income.
Stagnant wages, reduced hours with unpredictable schedules and the hollowing out of middle class jobs have all led to more people turning to 2nd and even 3rd sources of income to make ends meet.
And if you need supplemental income - which by definition means you have a different primary income source - you likely also need a high degree of schedule flexibility. This makes gig work attractive.
Those in need of high levels of schedule flexibility: Most traditional part-time jobs have schedules of some kind. But there are many people - care givers, parents, students, those with chronic illnesses - who can't work unless they have a highly flexible work schedule that's completely under their control. This requirement locks them out of most traditional employment options.
Those pursuing part-time passion businesses: Online gig work has opened new avenues for those pursuing a passion. Sites like Fiverr lets those with creative talents find part-time work while sites like Etsy provide creative artisans a low cost place to find customers for their wares.
Again, these sites let the user have complete control over their schedule and level of activity. They also are low friction in terms of starting up.
Those seeking new skills: One of the more interesting findings of our gig economy studies is about 16% of online gig workers report doing this work to learn a new skill or expand their existing skills.
This group includes a wide range of people (students, care givers, homemakers, etc.) including full-time traditional employees who are moonlighting to learn new skills that they hope will lead to career enhancement.
The need for low friction, highly flexible work is not new.
The direct selling industry (also called multi-level marketing) has been providing this type of work to millions of Americans for decades. But not everyone who needs to supplement their income wants to do direct selling or has the ability to succeed at it.
But thanks to the growing number of online gig marketplaces and platforms, there are many more options to secure this type of work.
People often tell us that Uber or Airbnb created the online gig economy.
We disagree. We believe the growing need for low friction, highly flexible work created Uber and Airbnb.
from Small Business Labs http://bit.ly/2MD4RVU
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