Ever since the outbreak of COVID-19 small business owners have opted to hire freelancers online due to several reasons. Most employees who were sacked from their job had to look for online jobs, which has led to the rise of the gig economy.
The gig economy is yet to grow massively even after this pandemic is over. This is because most employers are starting to see the benefits of hiring freelancers. Another reason is that freelancing is gaining popularity among the young demographic who make a huge part of the working population.
COVID-19 has changed worldwide, especially to the small business owners who do not have enough capital to run their business. The businesses have not been consistent. Hence, they had to shrink their workforce and start collaborating with freelancers since they can work without any restrictions.
The Boom of the Gig Economy
Most people around the world today are relying on freelancing work to support their lifestyle. Thanks to the rapid advancement in technology, which has enhanced fast and efficient communication between the clients and freelancers.
During the first wave of the coronavirus, governments implemented early closures and restrictions on various businesses. People had to return home early and could not earn money for the extra hours, and because of this, millions of people around the world had to become freelancers to sustain their living standards.
Other small businesses, in turn, had to cease operations or temporarily shut down until further notice. Some went bankrupt and had to close because nobody was buying from them at all.
How Small Business Owners are Gaining from Freelancers
Small business owners who are using the right approach and understand the benefits of using freelancers during this time of the pandemic are making profits every day. Besides, most freelancers are looking for clients to hire them at an affordable price. Here are the top advantages small business owners get when using freelancers during this time.
Although most people lost their jobs due to the pandemic, small business owners find it easier to manage fewer people. This may sound negative, but for business owners, it is an advantage because they can save on other unnecessary expenses.
When giving a task to a freelancer, all you have to do is provide them with a deadline and ensure the job has been done correctly. This is what small business owners are doing, and it is working for them. There are no restrictions, and there is no risk of spreading the virus among workers.
The main aim of any business that is growing is to make profits. During the COVID-19 outbreak, hiring freelancers has enabled them to save money and invest it in other parts of the business. Freelancers help a business grow because all you require is to pay for the service you have received. This means that you can save extra money for employee health insurance, housing benefits, bonuses, and transports benefits.
Business owners can also save money because they do not have to keep anybody on payroll to maintain their services. With a freelancer, they can always reach out to them in case they need them again.
When COVID-19 was announced, there was a lot of inconsistency in many businesses. This led to losses, and most small business owners were disappointed. Business owners are now using freelancers to grow daily because of the flexibility and consistency they get when working with them.
It has brought success to many companies as operations are still on-going despite the curfews implemented by the government. Another great reason small business owners embrace freelancers is that they can quickly move them from one project to the next, and it won’t impact other business areas.
Since all operations are carried out on a computer, it becomes much faster for company owners to reach out to the best freelancers. Freelancers provide outstanding solutions to small businesses to help them grow, and there is less paperwork involved.
Small companies are also embracing freelancers because there are a few hassles when it comes to training. It is easy to hire online workers within a matter of days and hours.
High Level of Expertise
This is one of the most crucial reasons why small business owners prefer hiring freelancers. With the rise of the gig economy, many people have created businesses online hence stiff competition. That is why companies’ owners are trying to use the best freelancers to grow their business and keep up with the competition before they are entirely faced-out.
Even though Covid-19 has had several negative impacts on society, it has allowed small business owners to find experts online at an affordable cost. For example, website designers, video editors, etc.
The Impact of the Gig Economy
Using freelancers online is not such a bad idea for small business owners. It is much cost-effective than hiring employees. It saves time, and several tasks can be optimized to make the business run effectively, especially during this time.
The fast growth of the gig economy has positively helped lots of people and businesses around the world. In 2005 the gig economy was at 10.1% in the U.S alone. By 2019 it had grown to about 57.3 million people. This shows that freelancing has had an enormous impact on the economy. Although there is a lot of competition, the best strategies are the things that will help a business grow.
The spread of the virus might continue to disrupt economic activities, and more business owners may be forced to use Freelancers online to grow their businesses. But there is still a question as to whether these small businesses will hire freelancers for good or is it just during this tough economic time.
As COVID-19 infections are not likely to end any time soon, small business owners and freelancers may need to rely on each other to grow.
Em-em Avila is a creative content writer from a leading Online Freelancing Platform—24Task. She loves to share information about a variety of topics including Academic Writing Tips, Freelancing Jobs, Digital Marketing Strategies, Virtual Assistance, and many more. Her passion for writing and sharing valuable information and helpful tips with other people is her inspiration in her every piece.