How Do Enterprises Emerge From the ‘Gig Economy’? An Exploration of Pathways from Freelancing to Business Development

Abstract

This thesis explores the connection between mechanisms of career development for freelancers in the gig economy, and pathways to entrepreneurship/business development in gig economy contexts. The gig economy can be viewed as a complex and contested concept. Discord in academic and public debate frames it either as the ‘future of work’ (Shaw et al. 2022; Vallas and Schor 2020; Graham et al. 2017; Bunders et al. 2022; Malik 2016; Kacher and Weiler 2017), or as exploitative and insecure work requiring regulation (van Doorn et al. 2022; Anwar and Graham 2020; Anwar and Graham 2021; Daniels and Grinstein-Weiss 2019; Kelly 2020; Bates et al. 2020; Garden 2017). While workers in the gig economy are a growing global workforce, the gig economy is not new, historically covering more conventional notions such as freelancing and entrepreneurship (Donovan et al. 2016; Barlage et al. 2019; Barrios et al. 2022). However, there is scant research addressing entrepreneurial intentions, or how self-employed freelancers, gig workers and enterprises emerge from these marketplaces (Banik and Padalkar, 2021; Morales-Pérez et al. 2022; Barrios et al. 2022; Burtch et al. 2016) and adapt to challenges as the business grows. From a Social Constructionist perspective, this thesis provides an analysis of key informant interviews utilising two core qualitative data sets comprising: A large firm that has contracted gig workers and operates in an industry (the construction industry) where this is commonplace (Data Set 1); and a selection of self-employed freelancers and gig workers working in gig economy contexts (Data Set 2). Data Set 2 is further divided into two sub-sets: Data Set 2A includes, self-employed freelancers, and gig workers, including sole traders, university tutors and individuals working in precarious employment, across various settings; Whereas Data Set 2B includes data from two participants that have worked as both freelancers and digital gig workers and are jointly involved in the creation of a new start-up. Analysis of (twenty) in-depth semi-structured interviews and policy and procedure documents evidence that: the gig economy facilitates entrepreneurship and helps workforces scale flexibly; ‘informal’ and ‘formal’ communication strategies mediate ‘organisational change’ (across the Data Sets); and increased digitalisation of work practices level the playing field for smaller businesses relative to established competition. Professional freelancers and gig workers expressed ‘entrepreneurial intentions’, supporting and extending previous research from service sectors of the gig economy (Usman and Sun 2022; Banik and Padalkar, 2021; Morales-Pérez et al. 2022; Barrios et al. 2022; Burtch et al. 2016) to professional gig economy settings. ‘Shared competencies’ (gig workers and employees) were identified, supporting the general assumptions of the ‘New Work’ model (Labanauskaitė et al. 2021), extending research to gig economy contexts. This corroborates findings that digitalisation and automation present unique challenges for the ‘future of work’ (Labanauskaitė et al. 2021; Ashford et al. 2018; Vallas et al. 2020; Taylor 2017). The thesis concludes by proposing a novel model conceptualising the ‘stages’ and ‘reflective cycles’ of enterprise development in the gig economy and pathways to business development from the gig economy. Finally, potential applications of the model are discussed in the context of current academic debates, focusing on the benefits for established organisations (represented by Data Set 1) versus newly formed, or smaller enterprises in gig economy contexts (represented by Data Set 2). Future research examining how economic sectors rely on each other and how the ‘new world’ of work will impact those dynamics, may further elucidate current debate. While this research may be limited in its generalisability to wider populations (Akhter 2022), conclusions are tentatively drawn regarding ‘generational differences’ relative to the extant literature.