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A misguided view on Freelance Economy

freelancing job

It’s possible that sometimes business experts got it all wrong. Or perhaps they are looking at the big picture that they tend to neglect the finer details. I don’t hold any MBA or doctorate degree but I can offer my educated opinion and I’m entitled to (because this is my blog).

Take for instance the article of BusinessWeek writer/Case Western Reserve University professor Scott Shane about the negative impact of the so-called Freelance Economy. Here’s the gist of this article:

“I’ve noticed a disturbing trend in what entrepreneurship in America is becoming. Over the past decade, we have been creating more non-employer businesses and fewer employer businesses per capita. (Employer businesses are companies that the Census Bureau reports have at least one employee; non-employer businesses have no employees.)…

Why am I concerned about this trend? Non-employer businesses aren’t the source of job or wealth creation that employer businesses are, which means the U.S. economy doesn’t benefit as much from them. By definition, non-employer businesses don’t create any jobs, and their sales and profits are quite low.”
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