Many South Africans are embracing side hustles or freelance work due to economic pressures. According to Henley’s research, 27% of the workforce is engaging in multiple jobs to cope economically (Henley Blog). With over 1.1 billion freelancers worldwide, the gig economy is booming, and entrepreneurs need to take notice. Gone are the days when full-time employees were the only option. Today’s small and large businesses are turning to freelancers for flexibility, scalability, and specialised talent.
What is the Gig Economy?
The gig economy is a labour market characterised by short-term contracts, freelance work, and temporary positions rather than permanent jobs. Thanks to the rise of digital platforms like Upwork, Fiverr, and Toptal, finding and hiring freelancers has never been easier. Whether you need graphic design, marketing, software development, or copywriting, there’s a gig worker out there ready to take on the job.
According to Investec, more than one-third of the workforce in the United States citizens are freelance workers, with around 162 million freelancers across America and Europe.
Businesses are also capitalising on this trend, as highlighted by Upwork, which reveals that 59% of companies in the US now utilise some form of flexible workforce, including remote employees and freelancers.
Why freelancers are the secret weapon for entrepreneurs
- Cost-effective talent: Hiring full-time employees can be expensive, especially when factoring in benefits, office space, and equipment. Freelancers, on the other hand, work on a per-project basis, allowing you to tap into expert skills without the long-term commitment.
- Access to a global talent pool: The gig economy gives you access to the best talent, regardless of geography. Need an SEO specialist? India has you covered… Web Developer? Ukraine provides a cost-effective solution…Graphic designer? Right here in your backyard!
- Scalability and flexibility: Freelancers provide you with the flexibility to scale your team up or down depending on your current needs. You can bring in extra help during peak periods and reduce costs during slower times.
How entrepreneurs can leverage the gig economy
To maximise the benefits of the gig economy, entrepreneurs need to rethink how they approach talent acquisition. Here’s how you can get started:
- Start small, scale fast: Begin by outsourcing small projects to freelancers and scale up as you get more comfortable managing remote talent. Platforms like Fiverr, Upwork and Freelancer make it easy to test the waters with short-term gigs.
- Focus on specialised skills: Need help with a particular aspect of your business? The gig economy is perfect for hiring niche experts. Whether it’s social media marketing, content writing, or app development, you can find a freelancer with the exact skills you need.
- Build a freelance team: Instead of hiring full-time employees, build a network of reliable freelancers that you can call on as needed. This gives you the freedom to scale your business without the overhead costs of maintaining a large staff.
Case study: how Slack used freelancers to build their platform
When Slack, the now multi-billion-pound communication platform, was in its early stages, the founders didn’t have a massive team or resources. Instead, they turned to freelancers for everything from product design to marketing strategies. By leveraging the gig economy, they were able to build a powerful platform without breaking the bank.
The future of freelance work
With the rise of remote work and technological advancements, freelancing is expected to grow even more. Entrepreneurs who tap into this talent pool now will be ahead of the curve. The key is to build solid relationships with freelancers, set clear expectations, and use digital tools to streamline collaboration.
The gig economy might just be your secret weapon to accessing top-tier talent without the long-term financial commitment, allowing you to scale faster.
So, if you haven’t tapped into the gig economy yet, now’s the time to start!