04/14/17

Small Businesses Fueling Growth in Freelance Market

Small business owners are the driving force behind the growth of the independent workforce in the U.S., according to a new LinkedIn study. The professional networking site found that small businesses make up an estimated 40 percent of the hiring activity in the rapidly-expanding freelance market, while mid-market companies account for 35 percent and enterprises account for just 25 percent.

The LinkedIn study also reveals that 93 percent of independent contractors and freelancers are likely to consider working for a small business, and a large number of them have the skills and willingness to move between industries. Seventy percent of the contractors who switched jobs in the last year moved to a different industry.

Up to 30 percent of the workforce in the U.S. are independent workers, according to the McKinsey Global Institute, and experts say that number is likely to reach more than half in the next decade. Software and IT services are the largest industry segments among contractors, with 223,000 professionals, followed by media and communications and healthcare.

The LinkedIn study is based on aggregate data from public LinkedIn profiles where contractor status is listed as a member’s position title.

More key findings from the study:

 

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About the author

Melanie King
A storyteller since first grade, Melanie King has shaped a career around writing engaging narratives—though her illustrations haven’t improved much since age 6. As a reporter and editor, Melanie has written about everything from retail and tourism trends to economic development for regional newspapers, trade publications, and national magazines. As Lendio’s Director of Public Relations, she specializes in reporting fintech industry news and its impact on American small businesses. Melanie has a B.A. in Journalism from Brigham Young University. She is also a backpacker, runner, and mom of four.

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