Solopreneurship and the One Person SMEsPerspectives and the Future of Independent Working

Marco TorregrossaSecretary General, European Forum of Independent Professionals

European Economic and Social Committee, 10 December 2015

The Shortening of Work Relationship

Type

Contract

Length

Place

Employee

Open-ended

Decades

In-house

Subcontractor

Temporary

Years

Out-house

Solopreneurs

Self-employed

Months/Days

Home/Cowor-king

Space

On demand

Services

Hours/Minutes

Platforms

Adapted from Thomas Malone – The spectrum of jobs

Growth of One-Person Businesses in the EU

Eurostat, 2015

• They work by themselves and for themselves, keeping their businesses at a manageable size, without the intention to hire employees or grow into a micro or a larger company.

• They can begin to trade immediately without needing infrastructures, funding, a business plan and often learn business skills as they go.

• They measure growth in unconventional ways, balancing income generation with autonomy, flexibility, long term self-reliance and personal well-being.

• They are not all “Steve Jobs” type of entrepreneurs (high-tech start-ups etc.) although they need to be “entrepreneurial”.

Who are Solopreneurs?

International Freelancers Academy Report 2011

Consultants PR professionals IT professionals Journalists

Real estate professionals

Painters Translators Interpreters

Sportspeople Marketing professionals

Headhunters Writers

Designers Editors Virtual assistants Coders

Social workers Private investigators Fitness trainers Photographers

Social media professionals

Exotic dancers Actors Game developers

Bloggers Musicians Tour guides Film makers

Buskers Yoga instructors Gardeners Personal coaches

Senior carers Babysitters Web developers Bitcoin miners

Some Examples of Solopreneurs

Patricia Leighton – The Rise of European iPros 2013

Drivers of Solopreneurship Growth

Combined forces:• Globalisation• Faster lifestyles• Technological revolution• Demographic changes• Increased mobility• Development of the

service sector• New production patterns• Online platforms • Need for specialised skills

to be provided ad hoc

Work is nowadays:1. Much more accessible2. In much smaller pieces3. From a greater number

of providers

EFIP: Bringing Down Barriers for Solopreneurs

1. Make it easy to become self-employed

2. Make it easy to work as self-employed

3. Make it easy to engage the self-employed

RecognitionRecognise the value of solopreneurs as economic agents in their own rights and as jobs creators.-> We call for an Envoy to be our interlocutor in the EU institutions and to consult our representatives before making policy that affects us.

DefinitionDefine solopreneurs as a unique subset of micro-enterprises for the purpose of the European SMEs definition. -> We call for the Review of the Small Business Act for Europe (2017) to give relevance and outline the characteristics of solopreneurs in accordance to the EFIP definition.

Policy Recommendations

RegulationProduce “Better Regulation” and simplified policy that specifically consider the needs of solopreneurs. -> We call for the SME Test and Think Small First approach in impact assessments to be adapted to solopreneurs and to self-employment in general (thresholds and exemptions as applicable).

AccessEnsure solopreneurs can access work, markets, public procurement, finance, social security, training, infrastructures and tax benefits at the same levels and conditions of employees. -> We call for stringent implementation of Art. 49 TFEU on “the right to take up and pursue activities as self-employed”, to be regularly evaluated in the economic governance process - notably the European Semester and the Country Specific Recommendations.

Policy Recommendations (Cont …)

ResearchSupport practical research that “tells the truth” and investigates the heterogeneity of iPros, a very diverse group in a continuously evolving environment. -> We call for a hands-on handbook on barriers and solutions for iPros providing services at cross-border level in the EU internal market.

CountingCalculate properly iPros in national statistics and in the Eurostat LFS as to validate the growing size of our demographic.-> We call for the set up of one Experts Group (DG Grow / Eurostat) to count iPros in Europe and measure the amount of work rather than just the number of jobs.

Policy Recommendations (Cont …)

“There are laws for people and laws for businesses, but we are a new category, a third category … people as businesses.”

- Brian Chesky, CEO Airbnb

“My father had one job in his life, I've had six in mine, my kids will have six at the same time.”

- Robin Chase, CEO Zipcar

Marco Torregrossahttp://about.me/marcotorregrossa @EfipUpdate | #iPros | #ThinkSmallestFirst