SAN FRANCISCO, Feb. 28, 2023 (GLOBE NEWSWIRE) -- Collective, the first all-in-one online back office platform designed for self-employed people, announced today the results of the first edition of its B1 Economic Report. This semi-annual report delivers insights into how the economy is going for American Businesses-of-One. With its look into revenue trends, cost trends and near-term business expectations among the self-employed, it provides a brand new indicator of economic growth.
Many financial industry pundits are warning of an inevitable recession, while others are more optimistic and forecasting only a brief slowdown. Rounds of layoffs in the tech sector have made headlines but overall employment numbers have been encouraging and the stock market shows signs of rebounding. Prior economic slowdowns gave rise to many successful Businesses-of-One, and so this report looks to this growing sector of the workforce as an indicator of overall health in entrepreneurship.
“While Businesses-of-One are experiencing many of the same challenges as larger companies in the US, unlike many larger businesses, most expect their companies to do better or the same as they had before the macro headwinds began,” said Collective CEO Hooman Radfar. “Many of our members made the leap to self-employment during prior downturns and, for them, it continues to be business as usual.”
The report’s data and survey arise from Collective’s thousands of members who operate solo ventures across industries and states. Key findings include:
- 81% reported that the last six months were the same or better for their businesses than they expected
- 83% expect the next six months to be the same or better than the previous six months for their businesses
- During the second half of 2022, net operating income for Businesses-of-One across industries contracted by 3% compared to the first half
- During the 2nd half of 2022, expenses for Businesses-of-One across industries rose 3.5%
- Businesses-of-One in sales and marketing saw the strongest growth among industries in H2 2022, with a 9.5% growth rate
There are around 73.3 million freelancers in the US, and 8.2 million have joined the workforce since the pandemic began. As workers choose more avenues of flexibility with their schedules, locations, and job functions, this portion of employees is expected to continue to grow.
Collective plans to continue monitoring these figures and updating them semiannually. The next B1 Economic Report will examine H1 2023 and will be available in H2 2023.
About Collective
Collective is the first online back office platform designed for businesses-of-one. Collective’s technology and team of trusted advisors gives their members the freedom to focus on what matters by taking care of everything from business incorporation to accounting, bookkeeping, tax services and access to a thriving community – all in one platform. Collective wants running your own business to be as seamless as taking a full-time job. The company is run by a group of serial entrepreneurs and businesses-of-one who believe in empowering self-employed people to enjoy the same tax savings that big companies get. They’re a San Francisco-based startup backed by General Catalyst, QED, Google’s Gradient Ventures, Expa and prominent investors who have financed and built iconic companies like YouTube, Substack, Twitch, Box, Instacart, Lyft, and more.
Website: https://www.collective.com/
Contact
Kristina Leal
Firebrand Communications for Collective
collective@firebrand.marketing
415-848-9175
