Work, Entrepreneurship, and Opportunity in 21st Century America

 

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This report documents a development in the U.S. economy that is both exciting and challenging—the rise of what we call America’s entrepreneurial workforce.

 

Traditional employment remains strong in our economy, and more Americans work in these jobs than ever before. Yet participants in the entrepreneurial workforce have cast aside the traditional model of working for one employer, for one paycheck, and on a set schedule that never changes.

 

Responding to new economic, technological, and social conditions, millions of workers and companies are instead making alternative arrangements and are seeking different opportunities. These arrangements assume a variety of forms including flex time, telecommuting, independent contracting, working as a temp or on an on-call basis, home-based businesses, and starting a small business full time.

 

While some may be pushed into the ranks of this workforce due to employer cutbacks, the great majority appear to be willing—even enthusiastic— participants. They choose entrepreneurial work to maximize wealth potential, to better balance the responsibilities of work and family, or to improve career satisfaction.

 

Some segments of the entrepreneurial workforce have seen substantial growth, particularly independent contracting. There are now an estimated 10.3 million independent contractors in the United States, making up 7.4% of the workforce. Small business startups, especially those created by women and minority Americans, are also increasing at an impressive pace.

 

The growth of the entrepreneurial workforce has triggered some resistance from those with a vested interest in perpetuating the status quo. Some union leaders, trial lawyers, and disgruntled workers have launched attacks on independent contracting and other innovative work arrangements.

 

If successful, these attacks will hurt, not help, our workers and our economy. The better approach is to help Americans seize the economic opportunities created by our evolving and expanding marketplace. Governments need to adjust outmoded rules designed for an earlier economic era, ensuring that there is flexibility in our regulatory systems. Workers and companies must be free to create and select from a wide range of business solutions to meet the demands of today’s highly competitive global economy.