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IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY
SELF-EMPLOYED INDEPENDENT
ENTREPRENEURS THE NEW ERA WORKFORCE
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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
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PARTICIPATION IN ONLINE PLATFORM ECONOMY
(cumulative percentage)
Source: JPMorganChase
GROWTH OF ON-DEMAND ECONOMY
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IGNITING ENTREPRENEURSHIP FOR A GIG ECONOMY
Steve King
Emergent Research
Emergent Research
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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
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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
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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
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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)
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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
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Emergent Research
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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)
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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
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Emergent Research
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Emergent Research
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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
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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
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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
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Workforce development
& the gig economy
July, 2019
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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
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Our mission is to equip people to benefit
from independent work and advocate for
an economy in which all workers thrive.
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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
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11 partners
SFBA
10 partners
new since 2018
National
Nonprofits
Government
Higher Ed
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Understanding Independent Work
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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
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Where do you typically go to find freelance work?
By the numbers
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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
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Opportunities andChallenges
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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
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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
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● 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
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Strategies for Workforce Training Systems
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● 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...
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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?
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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
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● 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
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● 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
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Ask for customized technical assistance from Samaschool!
● Facilitated strategic discussion
● Curated resources
● Action planning
Interested in next steps?
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Questions and Wrap-up
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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
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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
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More than 85% of alumni reported being moderately to very satisfied with independent work.
$26
Trainee Results: 2017 Alumni Survey
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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
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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
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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
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