An estimated 25 million people in the United States call themselves ‘self employed.’
They might hold multiple jobs, run online businesses or other small shops, or function as independent contractors or ‘freelancers.’
The Promise and Peril of the Freelance Economy provides a comprehensive overview of how self-employment has changed in America, and reflects changes in our economy and society.
“Traditionally, self-employment has been countercyclical,” points out Frank Braconi, the chief economist in the New York City comptroller’s office. “When the economy went down—when wages and salaries went down—self-employment went up.” That was evidence that “people were being forced into self-employment as a response to losing their paid, salaried jobs.” But in New York City, at least, that has changed. “The increases in self-employment are not so countercyclical any more,” he says. They’re neutral—“which is indirect evidence that more of the self-employed today are self-employed through choice than was once the case.”
The article focuses mainly on three categories of self-employed:
Soloists - Not just creative arts professionals, but plumbers, electricians and physicians in solo practice
Microbusiness Owners: Traditional entrepreneurs who sell goods rather than their services
Permalancers: Independent Contractors who have loyal clients and long term contracts
A description of how entrepreneurs are coping with the high costs and difficulties in obtaining health insurance is especially interesting, especially the discussion of the increased interest in Health Savings Accounts (HSAs) to reduce their premiums. HSA’s are tax-free savings accounts that are tied to high-deductible insurance plans that Congress and President Bush created in 2003.
What’s the mix of Soloists, Microbusiness Owners and Permalancers in your community?
Social media like MySpace, Facebook, Twitter and others are obviously a huge trend for all industries these days.
But social media can be especially useful to tourism businesses. Hotels, restaurants, tour guides, retail outfitters, golf courses and resorts can all benefit from getting messages out to potential customers - whether they have reservations yet or not.
A tourism forum in Colorado discussed how ski-industry related businesses can use social media marketing in ‘Tourism-related businesses turn to social media for marketing:’
“For our mountain community businesses, that means using social media to get out messages about snow depths, road conditions, news, events, activities and sales. Be promotional, speakers said, but not so promotional that readers are constantly bombarded with sales pitches. Develop a voice, but not an entirely corporate voice. Integrate the social media networks with existing Web sites and e-mail.
Build loyalty. That seems like a no-brainer as we’re all familiar with the Mary Jane fanatics in our own back yard. The most interesting message from that discussion was an encouragement not to be afraid of user-generated content. Let your guests, clients and customers have their say on your Web sites and blogs.
The final message from the symposium was that travel and tourism through the summer likely will be closer to home. That’s good news for Colorado high country areas that are less than a day’s drive from anywhere in this state and our immediate neighbors.”
Your tourism area doesn’t have to be driven by snow - any region where tourism and travel is affected by Mother Nature and the seasons could benefit from using social media to provide relevant and timely updates to visitors.
To read the complete article, click here.
As some of you may already know, my handmade craft business is very much seasonal and tourist-based, particularly from May through October when travel on the Blue Ridge Parkway is heaviest. For those of us with tourism businesses, nature and our mountain climate can be our best friends ….or our adversaries. We watch our regional climate carefully for clues to our market and our business’ survival.
Nature has taught me many hard lessons over the last eleven years, most notably how little I can control some aspects of my business. September 2004 brought one of those lessons, when not one but two Hurricanes (Fran and Ivan) hit our area, damaging the Parkway in both North and South directions.
First Fran gave us 20 inches of rain and softened the ground so much that when Ivan came through 8 days later, the trees gave way along with the asphalt. The northbound lane of the Blue Ridge Parkway literally fell off the side of the mountain, and rockslides damaged what was left. Direct Parkway access to the South (Asheville) was closed for nearly one year, and Parkway access to the North (Boone and the state of Virginia) for nearly two. The small rural towns off each Parkway exit were devastated economically when tourists were unable to easily get to them.
Natural disasters certainly take their toll on seasonal businesses, but so do the seasons of Mother Nature. Each Summer we watch the drought carefully, knowing that the length of the drought will affect how much color we’ll see in the Fall leaves and how long those leaves will stay on the trees. That will determine how many weeks long ‘leaf season’ will be, and how many weeks the tourists will bring their money to the Blue Ridge.
In recent years, leaf season has been so delayed that peak season is now in late October and early November, which has actually changed the season of our businesses. Most tourist businesses along the Parkway used to traditionally close October 31st. Now they stay open until all the leaves disappear along with the tourists, however long it takes. One year that was close to Thanksgiving.
Yet all too often these signs that our climate is changing are not even noticed. Or quickly denied if they are.
So when I found announcement of a North Carolina conference organized around climate change in Appalachia, I really felt a sigh of relief that somebody else noticed and wants to take a look at what it all might mean for our rural towns.
“Climate defines tourism. North Carolina’s tourism business is seventh in the nation with revenues of more than $16.51 billion a year. In 2007 in Buncombe County (Asheville, North Carolina) alone, tourism revenue grew to $705 million. People come to our mountain sanctuaries to hike, fish, view scenic landscapes, raft and renew. Just last year, drought and heat reduced whitewater for French Broad River paddlers. And regional studies warn that by 2100, a significant percentage of our streams may no longer support certain species of trout. River rafting and recreational fishing are multimillion-dollar-a-year industries.
Tourism also is affected by air quality. With prolonged heat, stagnant air masses trap airborne pollutants and pose a threat to health. This is a risk at all elevations, but above 3,500 feet, a favorite zone for hikers, the mixture will be especially potent.”
Warren Wilson College, The Wilderness Society and Orion magazine will host “Headwaters Gathering: Southern Appalachia at the Crossroads … A Call to Action” on March 27-29, 2009. Warren Wilson College is in Asheville, North Carolina.
Speakers will offer diverse perspectives from world economics, climate change, and rural development, and presidents of the National Wildlife Federation and The Wilderness Society will be presenting sessions. You can register to participate at www.headwatersgathering.org.
Here are two articles that address how mom and pop businesses may have an advantage over the big boys.
In Customer Service is No 1
specialty shops find little things, like a friendly hello, can inspire loyalty and sales.
The unique relationships that a ‘mom & pop’ or small business owner is able to build with customers may be the edge needed to compete with Walmart and the big box stores.
The custom framing and handcrafted work of some 400 artists is enough to lure people into Gallery 143 in Green.
But owner Joan Smith said she doesn’t rely on just her product to keep them coming back.
Customer service is the top priority, as Smith focuses on personal interaction to create a welcoming environment and build customer loyalty.
”I’m never going to be able to compete against Walmart. I’m always going to lose against people who are just looking for an [inexpensive] gift,” she said. ”And I will lose some people in this economy for that reason.
”But people who come here already know they want something different and if I treat them right, they might come back because they want to support you. I’ve had a lot of people say, ‘I hope you’re doing well.’ ”
This article also details the customer service efforts of another mom and pop seasonal business, a garden center: the seminars they schedule during garden planning months and the blog where they share gardening tips with their customers.
In Simple Landing Pages are Best for Mom and Pop, a search engine optimization group finds that big corporations can have a tough time competing with mom and pop businesses online. Mom and pop businesses can often move more quickly and develop simple, focused product-oriented pages that speak specifically to their customers’ needs.
As more people in rural America find themselves laid off or working reduced hours, the idea of starting a small rural business or expanding the one you already have is something to consider. Here are several online resources to help you think things through.
In Advice for the Accidental Entrepreneur, Dr. Jeff Cornwall defines who ‘accidental entrepreneurs’ are and the types of businesses they often create:
The recession is creating many “accidental entrepreneurs” — people who suddenly find themselves out of work with no viable option except to make it on their own through self-employment or starting a small business.
A question I am frequently asked these days is, “What kind of business can I possibly start?”
The best business opportunities come from things people already know something about. They come from our work experiences, our hobbies, or our everyday lives. Find something from your experiences that is also a need for others.
How passionate do you need to be about your new business? Take a look atWhy Passion is Overrated: The Secret Truth to Creating a Successful Business.
To give us a ‘pep talk’ with an historical twist, The Silver Lining of Economic Downturns provides a short list of innovations that entrepreneurs introduced during tough times, providing it can be done!
And although it can be a different and difficult time to launch a new product, there are some actions you take to improve your chances of being successful, provided in Starting Up: Four Ways to Get Customers to Buy Your New Product.
What kinds of rural business start ups are you seeing in your town?
