RSA, or the Royal Society for the Arts, recently conducted a project with Etsy called The Power of Small. The research and survey seeks to better understand the changing community of microbusiness. Since 2008, a remarkable 600,000 new microbusinesses have been created; self-employment has increased by about 30% since 2000, and 15% of the workforce is now self-employed.
Ben Dellot walked us through some of the key results.
Stereotypes – The stereotype of middle-aged men being a typical business-owner is changing rapidly. Women, over-65s, and young people in particular are turning to self-employment.
Where? – Where are they starting these businesses? Overall, London and the south of England have the greatest number of microbusinesses. By proportion, however, micros are much more significant & important outside London.
Why? Reasons why more people are leaving traditional employment are disputed. The jobless argument – that people are creating their own work due to unemployment – is actually a myth, according to RSA survey & research. Actually, overwhelmingly respondents told the RSA that they want more freedom. In fact, self-employment has been increasing year-on-year since 2000, not just since the economic crash of 2008. Few wish to return to employment
How? – How are micros thriving under the current economy? Small businesses survive in service industries and artisanal markets, which UK is shifting towards. Demographics are also important. Healthy retirees, a baby boom, immigration, and new technology and its users all contribute. Many respondents commented on new technology – with most saying that it is vital for their business to exist.
The six tribes of self-employment – RSA looked into the reasons why people become self-employed. These are usually split into those pushed into it, and those pulled into it by opportunity. They are: The Visionaries, Locals, Classicals, Survivors, Independents, and Dabblers. Read more in the full report: Salvation in a Start-Up.
In summary: Is it a good thing to be self-employed? Is it something we want to champion and promote or should we be discouraging it? At first sight, life in self-employment can look a bit bleak: earnings are low compared with employed people, but many report pros like lifestyle benefits of increased freedom and creative direction. As highlighted in the findings of the RSA/Populus survey – the reason is because the self-employed often derive greater freedom, meaning and control from their work.
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Watch Benedict's talk:
Benedict Dellot from Small is Beautiful on Vimeo.
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Here's more from Ben Dellot through our Twitter live feed!
Ben is sharing results from the Power of Small Project by Etsy & RSA. Why are so many people turning to self-employment? #smallisb
— Small is Beautiful (@SmallisB) June 4, 2014
The stereotype of middle-aged men being a typical business-owner is changing rapidly. Women, over-65s, & young people. #smallisb — Small is Beautiful (@SmallisB) June 4, 2014
Where are they starting these businesses? London & SE. But by proportion, micros are much more significant outside London. #smallisb
— Small is Beautiful (@SmallisB) June 4, 2014
The argument that people start businesses to escape unemployment is a myth, according to RSA survey & research. #smallisb — Small is Beautiful (@SmallisB) June 4, 2014
For young people, self-employment is on the rise, traditional employment is FALLING. #smallisb
— Tara Gentile (@taragentile) June 4, 2014
1 in 7 of UK population is self-employed. Women up by 40% since 2000 almost 2x number of men #smallisb — Emma Mortimore (@ZuzuEmma) June 4, 2014
Self-employment has been increasing year-on-year since 2000, not just since the economic crash of 2008. Few want to return. #smallisb
— Small is Beautiful (@SmallisB) June 4, 2014
5 ingredients behind the self-employment boom: new tech, new mindsets, new population, new organizations, new markets #smallisb — Tara Gentile (@taragentile) June 4, 2014
Great myth-busting from RSA. We're not starting businesses to escape employment & don't intend stopping when economy recovers #smallisb
— Emma Mortimore (@ZuzuEmma) June 4, 2014
Demographics are important factors. Healthy retirees, a baby boom, immigration, and new technology & its users all contribute. #smallisb — Small is Beautiful (@SmallisB) June 4, 2014
Profile of self-employed usually crudely split into those pushed into it by unemployment & those pulled into it by opportunity. #smallisb
— Small is Beautiful (@SmallisB) June 4, 2014
RSA found 6 distinct tribes of self-employed people – you may find you fit into or identify with up to 2 or 3 categories. #smallisb — Small is Beautiful (@SmallisB) June 4, 2014
Learn more about the Power of Small results from @BenedictDel here: http://t.co/nDvr99gT3B #smallisb
— Small is Beautiful (@SmallisB) June 4, 2014
Great stats presented by @BenedictDel from RSA today talking about categories of people in self employment #smallisb pic.twitter.com/yNsJMDQzZF — Sam Eccles (@sammyecclescake) June 4, 2014
At first sight, life in self-employment look a bit bleak. Earnings are low compared with employed people… #smallisb — Small is Beautiful (@SmallisB) June 4, 2014
Great insights about the influence of new tech on small biz from RSA's @BenedictDel, rise of niche personalised goods etc. #smallisb
— Laura Grace (@usherette) June 4, 2014
Therein the twist! Self-employed likely to spend longer hours, etc – but say they are far more satisfied. Why? Practical benefits. #smallisb — Small is Beautiful (@SmallisB) June 4, 2014
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