Freelance Economy – Definition

Cite this article as:"Freelance Economy – Definition," in The Business Professor, updated December 15, 2019, last accessed October 27, 2020,


Freelance Economy Definition

The freelance economy, of Gig Economy, is an economy of independent workers or individuals who are self-employed and execute different projects based on an agreed fee with the client. There are many freelance sites that exist, individuals seeking to freelance get hired on these platforms and receive payment on the platform. The most popular freelance sites include work and Fiverr.

In recent times, more people are beginning to flock the freelance market, where they get hired for temporary work depending on their skillsets and what they have to offer. The impact of the internet on freelance work is also a vital one.

A Little More on What is the Freelance Economy

Aside from creating opportunities for self-employed individuals to make a livelihood for themselves, the freelance market has created an opportunity for people to improve their skillset. As ore people enter the freelance market, the freelance economy has continued to boom. The impressive growth of this economy is attributed to the number of freelancers that work on different platforms as well as the amount of money circulated in this economy. In the United States, for example, over 56 million people belong to the freelance economy. Individuals can make as much money as possible in the freelance market and enjoy flexible working hours. Over one-third of the American population also work as freelancers, either full-time or part-time.

Problems and Challenges of the Freelance Economy

There are certain problems that have been attributed to the freelance economy, one of these is its contribution to the diverse difficulties that people face in society. The major problems of the freelance economy include;

  • Freelance workers enjoy no health coverage or health insurance. When they fall ill, they are not entitled to vacation or leave, unless they take a break from work which can lead to financial hardship if prolonged.
  • There is no provision for retirement or pension plan in the freelance market, despite the fees and commissions paid by the workers, they are no entitled to post-work benefits.
  • It has caused a decline in the full-time job market and ore people now flock to the freelance market, creating a strain the domestic employment.

References for “Freelance Economy” › Insights › Markets & Economy…/what-is-the-freelance-economy/…/freelance-economy/ › Industries › Freelancing & Consulting

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