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2015 Nonemployer Firms Credit Survey

Small nonemployer businesses—those with no employees other than the firms’ owners—make up nearly 80% of all U.S. firms in number. Yet, little is known about the performance or the financing needs and decisions of these 23 million businesses. The few sources that provide insight into small business credit conditions do not distinguish the experiences of nonemployers from small employer firms, which may differ significantly.

The Economics of The Independent Workforce

This study, which was commissioned by Upwork, the world’s largest freelancing marketplace, places the IW in context by examining the economic drivers, impacts, and facts around the growth of work performed by self-employed professionals and other freelance businesses. To more fully understand the IW and provide informed judgments about the wisdom of policy reforms that may affect freelancers and their economic opportunities, this study analyzed two distinct data sources and reviewed the related literature. The primary data sources are the 2014 and 2015 Freelancing in America (“FIA”) survey of American workers co-sponsored by Freelancers Union and Upwork, and the 2015 transactions between buyers and sellers using Upwork’s website.

Exploring Online and Offline Informal Work

The growing prevalence of alternative work arrangements has accelerated with the rapidly evolving digital platform transformations in local and global markets (Kenny and Zysman, 2015 and 2016). Although traditional (offline) informal paid work has always been a part of the labor sector (BLS-Contingent Worker Survey, 2005; GAO, 2015 and Katz and Krueger, 2016), the rise of online-enabled paid work activities requires new approaches to measure this growing trend (Farrell and Greig, 2016; Gray et al, 2016; Sundararajan, 2016 and Schor, 2015). In the fourth quarter of 2015, the Federal Reserve Board conducted a nationally representative survey of adults 18 and older to track online and offline income-generating activities as well as their employment status during the six months prior to the surveys. Survey results indicate that 36 percent of respondents undertook informal paid work activities either as a complement to or as a substitute for more traditional and formal work arrangements. We explore the rationale behind respondents’ participation in alternative work arrangements by setting questions that capture participant motives and attitudes towards informal offline and online paid work activities. Sixty-five percent of qualified survey respondents indicate that a main reason for participating in informal work is to earn extra income.

Philanthropy and the Future of Work

In a new paper, Philanthropy and the Future of Work: Dimensions of Change and Opportunities for Action, we address the challenges related to the future of work facing philanthropic leaders who are interested in connecting economically vulnerable individuals and families to opportunities for advancement through work. The paper draws from a series of interviews conducted with more than a dozen individuals in philanthropy, revealing their ideas on the future of work and the implications for their strategies.

Economic Security for the Gig Economy

Etsy is now forging new ground by lobbying for the economic security of its sellers. In a new report, the company points out the striking growth of the gig economy and calls for reforms to our current benefits system stating, “It’s time to start thinking bigger and reimagine a world that guarantees a social safety net to everyone who works, regardless of how they work.”

Freelancing in America 2016

2016 is the third year we have conducted “Freelancing in America” – the most comprehensive measure of the U.S. independent workforce available. Going into this year’s survey, we already knew that millions of Americans today are choosing to be part of the independent workforce, driven by freedom and flexibility. Moreover, technology is making it easier to find freelance work, making freelancing an increasingly popular way to work and live.

The Arrival of the Immigrant Entrepreneur

The SBA’s Office of Advocacy has a new report – The Arrival of the Immigrant Entrepreneur. Over the last 20 years, the role of immigrant entrepreneurs has grown. The percentage of the self-employed who were born abroad more than doubled between 1994 and 2015, growing from 8.6 percent to 19.5 percent. This report shows that the growth was caused by three changes — an increase in the size of the population born abroad, an increase in self-employment among those born abroad, and a decrease in self-employment overall.

Conditions of Black Women Business Ownership

The number of women-owned businesses is rapidly growing. Amidst these increases, Black women have become one of the fastest growing segments of entrepreneurs in the country. This work explores the many challenges and opportunities faced by Black women entrepreneurs.

Amazon and Empty Storefronts

Civic Economics new report – Amazon and Empty Storefronts – looks at two broad classes of impact: Fiscal (relating to public revenue) and Land Use (relating to development patterns at the local level).

Monopoly Power and Small Business

The Institute for Local Self-Reliance issued a new report that suggests a troubling explanation for the dwindling ranks of small businesses. “Drawing on examples in pharmacy, banking, telecommunications, and retail, it finds that big companies routinely use their size and their economic and political power to undermine their smaller rivals and exclude them from markets.”