SCORE, a nonprofit association that provides mentoring services to small businesses, released their fall Small Business Jobs report recently.
It has some very interesting data on small businesses and their use of gig workers.
According to the report:
- Business owners reported a 37% increase in hiring gig workers over the past six months, compared to increases of 13% for full-time employees, 22% for part-time employees, and 12% for part-time independent contractors.
- 19.8% of businesses surveyed reported replacing employees (of any type) with contractors over the past six months.
- 47% of non-employer/solopreneur firms reported hiring part-time workers and/or contractors to help run the business, for an average of 3.2 workers, including the owner.
The top reasons small businesses are hiring contractors and gig workers is shown in the SCORE chart below.
Most people we talk to think cost is the main reason people use gig workers.
But as the chart clearly shows, cost issues are well below accessing specialized talent and the small business only having temporary needs.
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