Recent happenings are activating more interest in income opportunities that are designed around two basic attributes:
- Easy to understand and do.
- Flexibility and freedom in how the work can be accomplished.
It is very important to understand that the opportunities described are available. Anyone with a desire to leverage underutilized time, assets, knowledge, skills, experience, can now find something that fits and supports a desire to earn incremental income. The gig economy is that opportunity. The rate of inflation is now hovering around 8% on average, higher in some places. Wage increases, which generally average 2% to 4%, are not expected to keep pace therefore; every $5,000.00 in income is possibly losing $400.00 in purchasing power.
We may not be able to control what is happening externally, however, we can control what we do. There are equalizers that can help to create other forms of complimentary income that can be effective. The gig economy can be viewed as a potential equalizer. Gig income of $500.00 represents a 5% increase to other annual income of $100,000.00. Gig income of $10,000.00 or more represents a 10% or more increase to other sources of income. Our most recent research revealed that 69% of gig workers are now working multiple gigs … proof again that there is a growing desire to evaluate micro entrepreneurial opportunities.
The Great Resignation, well publicized here in the United States, was an announcement relative to traditional job quit rate. Alarming to some, the quit rate amongst all major industries across all regions in the United States hit a historically high rate, never ever experienced in our 100+ years of what we now refer to as the industrial economy model of rigid work hours that generally require a fixed location from which the work is accomplished. While we share concerns for those who operate traditional business models, the Great Resignation was also a signal that people were not quitting work as much as quitting the traditional job format and the rigidity associated with work from a fixed location during fixed hours. The Great Resignation is interpreted by many as proof that there is greater interest in flexibility and freedom in how work can be accomplished. The gig economy is worth exploring in its many formats.
Record breaking inflation is now our new reality, at least for a while. Important to understand is the lost in purchasing power. We talk about gas prices however, we should expect the impact to reach practically every expenditure, even the necessities such as food and other essentials including the things we like to do. When inflation outpaces wage increases, the deficit is borne by the consumer or in this case…the people. Traditional wage increases run between 2% to 4% on average and it is unlikely that this will change in 2022. The answer to this dilemma is always the possibility of activating a complimentary income stream that has the potential to become more than complimentary. This brings us back to the gig economy and why it is important to understand its significance. Our most recent research revealed that 69% of gig workers are now working multiple gigs.
The year end results reported by Shopify, served as proof again of the growing receptivity of both the digital platform as the primary tool to serve the sale of products and services and the growth of micro entrepreneurs who use digital platforms to market their personal businesses, products, and services. Shopify reported 2021 revenues at $4.6 Billion up 57% over prior year and their subscription model, very popular amongst micro entrepreneurs, was $1.3 billion up 48% over prior year. The Shopify mission is stated very clearly: Making eCommerce Better for Everyone. Shopify is recognized by many as an excellent eCommerce platform that can be accessed by the smallest or newest micro entrepreneur as well as the more sophisticated brand.
AFEUSA is paying close attention to the phenomenal growth of the gig economy and the involvement of an estimated 60 million plus Americans who are finding engagement of a gig(s) to be their equalizer or accelerator. Gigs are an equalizer when they complement income that may be challenged by inflation or innovation that continues to cause major shifts in the traditional job market. Gigs become an accelerator when the income provided enhances savings and investments and accelerates the attainment of goals and objectives. This new breed of micro entrepreneur will benefit from access to products and services that support those engaging in the new trend toward micro entrepreneurship.