The idea of more people opting for self-employment and working from home
via the Net intrigued me enormously in the first three or four years of
FW's existence and gave rise to much discussion. As a consequence, the
whole idea intrigued me so much that I decided to start such a business
(Handlo Music Limited) even though I already had a business which gaves me
a modest, but sufficient, income. Handlo Music (www.handlo.com) now has a
team of eight or nine people working from home in six countries, and sells
sheet music to choirs in over 50 countries (the most recent customer-choir
being from Latvia -- now on the Net, I'm pleased to see).

I am, in fact, quite surprised that more businesses are not on the Net. So
I was most interested to read a review of  Daniel H. Pink's book, "Free
Agent Nation" in the Financial Times today, which suggests that my slightly
pessimistic view was unfounded. (The "Free Agent Nation" means the US, of
course.) So here's a paraphrase of the review (by David Honigman) which may
be of interest to FWers:

<<<<
FREE AGENT NATION (Daniel H. Pink, Warner Books, 2001)

Former speech-write for Al Gore examines self-employment from many
different angles. It grew out of an article in Fast Company magazine.
Despite the demise of the "New Economy" which turned out to be much the
same as the old, Daniel Pink identifies several factors which are driving
the rise of self-employment or free agency. He defines a "free agent" as
(a) a project-based freelance soloist worker; (b) a temporary worker, or
(c) someone with a microbusiness. He thinks that one in four workers in the
US are such (and one in eight in the UK). 

[KH -- This last ratio surprised me, but a recent British Telecom research
report estimates that about 1.5 million people in the UK work from home.
Not all of these will be self-employed, of course, but the figure seems to
suggest that Pink's estimate is probably not far wrong for the UK.]

The cluster of causes of a rise in  for much more self-employment are the
shorter lifetimes of commercial strategies and the firms themselves,
particularly big firms, the consequent crumbling of the social contract of
work whereby employers reward loyalty with life-long jobs and, more
recently, the potentialities of the Internet and of the low cost of the
necessary equipment such as the personal computer and mobile phone.

When academics discuss self-employment they have one of two mental models
in mind. One is that self-employment has been forced on someone and
consists of dispirited, atomised victims who would really like to re-enter
employment by traditional firms. He bemoans the fate of temp slaves, with
badly-paid demoralising work, and those perma-temps, stuck in
administrative limbo and tantalised with the prospect of permanent jobs
that never quite materialise. 

The other is that the self-employed consist of highly liberated
self-dependent individuals. Either of these may be true for some. For many,
Pinks avers, the reality is closer to Tarzan swinging through the jungle,
leaping from project to project in a mixture of hope and desperation. In
addition, free agents face the problems of lack of health benefits,
arbitrary zoning laws that prevent some sorts of work being done at home,
and the difficulties of impenetrable tax codes. However, the rising number
of free agents (now about 33 million in the US) is now becoming a powerful
pressure group.

[KH: in the UK recently, an association of independent software consultants
have been appealing against the ruling of the government income tax
authorities that, if they work for any length of time for a firm, they
should be regarded as being employed, and taxed as such. The courts found
in favour of the authorities, but have forced them to re-write their
definition of employment. It seems probable therefore that there'll be more
scope for the self-employed to so arrange their status and contracts with
firms temporarily employing them in order to be considered self-employed
and, thus, to offset many expenses against earnings.]

For some, there are the considerable psychological drawbacks of
self-employment of loneliness and insecurity. For loneliness, Pink
advocates networks of contacts and temporary alliances of collaboration.
For insecurity, it remains to be seen just how much sub-contracting will
continue if and when firms face economic downsides.
>>>>

Keith Hudson
   



___________________________________________________________________

Keith Hudson, General Editor, Calus <http://www.calus.org>
6 Upper Camden Place, Bath BA1 5HX, England
Tel: +44 1225 312622;  Fax: +44 1225 447727; 
mailto:[EMAIL PROTECTED]
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