Microentrepreneurs in the gig economy: who they are, what they do, and why they do it

Purpose

Gig microentrepreneurs are individuals who have embraced short-term gigs as an entrepreneurial agency for both financial and social livelihood. Based on surveys in 2020 and 2023, the research reported here presents a comprehensive, empirical portrait of two cohorts of gig microentrepreneurs. This portrait captures the similarities and differences of gig microentrepreneurs in terms of offline and online business models and the nature of gig work. Recognizing that there is not a “typical” gig microentrepreneur will help ensure that this gig business model continues to evolve without boundaries in terms of demographics, motivations and behavior and will enable marketing and entrepreneurship scholars to better assist in entrepreneurial growth and development. The purpose of this paper is to gain a better understanding of the gig microentrepreneur regardless of the nature of the gig work.

Design/methodology/approach

The research involved two separate surveys in the USA. The first survey took place in July 2020, and the second survey took place in April 2023 after major changes had taken place in the economy and in society (e.g. the COVID pandemic). Both surveys used samples generated by Dynata, an online consumer panel company with access to more than 70 million consumers worldwide who have agreed to participate as panel members.

Findings

The surveys provided answers to questions about the demographic and behavioral aspects of gig microentrepreneurs, including who they are, the number and type of gig activities in which they participate, the financial livelihood generated from gig income, the social livelihood inherent in gig work and dissatisfaction with being a microentrepreneur in the gig economy. These findings produced insights into why individuals engage in gig activities and the positive and negative impacts of that engagement. Based on the findings, nuances and trends within the gig economy and among gig microentrepreneurs are identified and discussed.

Research limitations/implications

The research limitations include lack of generalizability outside of the USA, use of panel data and survivor bias.

Practical implications

Consumers, gig microentrepreneurs, companies and government agencies can benefit from the growth in the gig economy. The vast array of gig activities in which gig microentrepreneurs engage clearly shows the need for an on-demand workforce. There are both economic and societal benefits to having a labor-force that can meet a breadth of demands with varying timeframes.

Social implications

Whether gig microentrepreneurs are engaging in gig work to augment their income because of economic insecurity or for intrinsic reasons, the motivations and behaviors of the gig microentrepreneurs are indicative of the talent and resources needed to keep the US economy moving forward positively.

Originality/value

As noted by several scholars conducting research on the gig economy, little is known about gig microentrepreneurs – who they are, what they do and why they do it. Current research on the gig economy tends to focus on online platform companies. This research offers an exploratory look at microentrepreneurs who engage in gig activities both online and offline without geographic or technological boundaries.