One of the interesting findings from the MBO Partners State of Independence study series is a growing number of independent workers (freelancers, solopreneurs, gig workers, etc.) have customers outside of the U.S.
There are several reasons for this:
1. Online platforms and marketplaces have made it much easier to find and conduct business overseas. This is true for both product and service companies.
2. Outsourcing has made international shipping and logistics much easier.
3. Rapidly growing developing countries have increased demand.
4. More service firms are productizing their offerings, which make it easier for them to export.
About 22% of independent workers report that their primary business is product based. Many of these use sites like Amazon, Etsy and eBay to sell their products outside of the U.S.
Also, a growing number of services businesses are creating products.
This is especially true for training firms of all kinds, including fitness trainers, business coaches, music instructors, etc. who are creating materials and classes that they can sell like products. These independents also are finding it easier to export.
And, of course, even traditional services businesses can more easily find and serve international customers thanks to the Internet and platforms like Upwork, Fiverr, etc.
We've written in the past about the boom in U.S. small business exports. And this boom should continue with independent workers being a major beneficiary of growing export markets.
The major risk is, of course, trade wars leading to reductions in global trade. But for now the products and services provided by independent workers have not been targeted for tariffs by the U.S. or its trading partners.
This could change. And you could easily see platforms like Amazon and Etsy targeted by our trading partners.
But hopefully the clear logic that no one wins a trade war will win out.
MBO Partners is an Emergent Research (that's us) client.
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