The 411 on Todays Economy…

The 411 or FYI on today’s economy and workforce is several things are taking place.

First,  let us define, then compare the “Gig” economy versus the “shared” economy.  The “gig” economy is defined as temporary assignments are contracted with independent workers. These independent workers are usually referred to as 1099 employees. Technically,  this is incorrect but this is what the business nomenclature that is being used  because they are independent from the legal definition of an employee.

The “shared” economy is where individuals are monetizing their assets, but are not being fully utilized.  Think of Airbnb™, Uber™, & Lyft™, but can also be described as advertisement and the sale of goods.  Ebay™, Etsy™ and PoshMark™ are examples of these.  Sharing economy entrepreneurs receive a 1099-K. They can also receive a 1099-Misc. 

As of the 2010 Census, the Small Business Administration had 27.9 million small businesses registered in the United States, compared to just 18,500 companies of 500 employees or more. Included in that total figure are sole proprietorships (73.2% or  20.5 million), corporations (19.5%t or 5.4 million), and franchises (2% or 558,000). Fifty two percent of small businesses (14.5 million) are home-based.  This says one out of every 14 people own their own business and one out of every 9 residential housing unit is an office for the home-based business.

So why is this happening?

According to a 2010 Intuit study, By 2020...



  • The number of contingent employees will increase worldwide. In the U.S. alone, contingent workers will exceed 40 percent of the workforce by 2020.
  • Traditional full-time, full-benefit jobs will be harder to find.
  • Small businesses will develop their own collaborative networks of contingent workers, minimizing fixed labor costs and expanding the available talent pool.
  • Self-employment, personal and micro business numbers will increase.
  • Government will misclassify workers, creating a major issue for companies of all sizes, especially in the first half of the decade. Work classification and work style will emerge as a target of intense political debate.



According to THE SAME 2010 Intuit study, By 2020...


  • The expansive reach of the Internet, social media and online search will greatly increase the number of viable niche market opportunities.
  • Continued business cost reductions, due to lower-cost technology, outsourcing and access to third-party services, will drive down the costs of creating customized and niche products.
  • Small business numbers will increase, with the greatest growth found in personal and micro-businesses.
  • The average small business will be smaller due to agility requirements and the use of contingent workers.



According to THE SAME 2010 Intuit study, By 2020...


  • Smartphones, tablets and other mobile computing devices will become the go-to computing devices for most of the world.
  •  “Third places” for work will join the traditional office and home. The use of third places – public libraries, co-working facilities and rent-by-the-hour office suites – will continue to grow both in the U.S. and abroad, augmenting the already standard list of airports, cars and cafes.
  •  Enhanced collaboration and video services will transform the new workplace as distributed.  Virtual teams meet regularly using these new technologies.
  • The globalization of talent will continue. Information and communications technologies will enable better globally distributed work.