Every Solution Equals a New Opportunity
The population in the U.S. is 361m, the labor force is 156.4m, 15.3m are self employed and 9.1m are unemployed. According to MBO Partners’ SIA report, the number of self-employed workers is expected to rise to 23 million by 2017. With an increase in companies who supply an on-demand workforce, like Uber, Thumbtack and Red Clay, it can be predicted that the number of self-employed Americans will double by 2018. Why? Below are a few reasons:
Financial Support. Venture Capital firms such as Structure Capital are putting their money where their mouth is and investing in companies ”who create significant value out of under-utilized assets. They use precious resources efficiently, reduce overhead, empower individuals, put people to work and help communities grow. They enable more timely and relevant products and experiences, remove friction, and shorten the distance between supply and demand. They invent new business models that change the economics of an industry.”
Flexibility. Companies like Uber have allowed individuals to work when they want from where they want.
Focus. With the ability to manage ones own schedule and work, comes the ability to prioritize and engage in only the most meaningful endeavors. Companies like Red Clay allow designers to focus on design, leaving business development and project management behind.
With every solution there is a new problem. As the on-demand workforce rises so will new economies, economies that will revisit history and feed the newly found increases in the technology enabled self-employed workforce. I will leave you with a few historical stats and let you predict or continue working on the next solution:
Health Care. In the early 1870s, railroad, mining, and other industries began to provide company doctors funded by deductions from workers’ wages.
401K. The Revenue Act of 1978 included a provision, under which employees are not taxed on the portion of income they elect to receive as deferred compensation rather than as direct cash payments.
- Taxes. Yes, the self-employed shall pay these.
What new solution will arise to support the growing on-demand workforce of America?