A microbusiness is a small business with 1-9 employees. The impact of microbusinesses is much larger than the name might imply. Microbusinesses are the most common kind of employer firm, numbering more than 3.7M in 2015.
In 2017 57.3 million Americans or 36% of the total workforce, freelanced which contributed over $1.4T to the U.S economy. This number is only expected to grow. Younger generations have shown they are more open to the idea of freelancing, let alone the fact that it only requires an internet connection and an idea to start a business.
The role technology is playing in a shifting economy cannot be understated. Technology platforms like Etsy are helping grow this segment of the economy even faster. Software tools and platforms have made it easier than ever to start and grow a microbusiness from anywhere in the world. This level of empowerment can have outstanding effects on both global and local economies. Â A 2017 Etsy seller survey found the following:
More people than ever had been choosing to work outside of the traditional full-time employment model and combine income from multiple sources.
72% of sellers work independently by choice, not out of necessity.
Less than a quarter of Etsy sellers are in urban areas, with 28% running their business from a rural area and 48% from a suburban town.
Microbusinesses are not void of challenges or hardships. In fact, many of their challenges are misunderstood and/or different than those of even small businesses. Yet, most government programs for small businesses tend to be siloed or overlook the needs of microbusinesses. It wasn’t until 2017 when the first-ever Microbusiness Caucus was formed in the United States to represent the voice of microbusinesses in public policy. Government support of portable benefits, economic security, tax & regulatory simplification, international trade, entrepreneurial skills & training, and greater access to the internet can help further support a changing economy.