Why the UK is on course for a Perfect Storm of SME demand and Freelance supply
The folks at Ingenious Britain kindly published our thoughts last week, on the state of the freelance marketplace and what the future holds for SMEs.
It’s been a long time coming, but British entrepreneurs are finally starting to see the light at the end of the tunnel, and StartUp Britain’s famous homepage Tracker is testament to that. Since the beginning of the year, 413,525 new businesses have been set up - but that’s the easy part...
With over 40,000+ SME customers in the UK alone, Regus is well aware of the the trials and tribulations of setting up and running small businesses. From juggling limited funding and resources, to bridging skills gaps in core teams.
A growing number of firms are now choosing to outsource work to freelancers - three-quarters when they need specific expertise and skillsets - which as startups and growing SMEs will know, is very often. In the coming year, 6 out of 10 companies surveyed by Odesk were expecting to hire more freelance workers.
It’s no surprise that a recent report by PeoplePerHour shows that 82% of those SMEs view hiring freelancers as vital to growth. And not just to cut costs. Local workers are often more cost-effective than farther-flung freelancers, even if they have to charge higher rates. The added flexibility that temporary workers bring means that businesses can be better placed to respond quickly and efficiently to changing industry demands and budgets; and for 90% of these businesses, individual departments are now the ones making the hiring decisions, as soon the need for specialist expertise arises.
Meanwhile, rates of self-employment in the UK are on the up-and-up, whether that means contractors, ‘solopreneurs’, or traditional freelancers. That’s a figure that looks set to keep on rising, even as rates of those forced into self-employment by the recession start to level off - a recent report by Regus highlights that 83% of recession-made entrepreneurs would do it again, and recent stats say the majority of ‘after-hours’ freelancers are looking to quit the day job and go fully independent in the next two years.
We’re on course for the perfect storm of SME demand and freelance supply, but the marketplace is already difficult to navigate. For businesses the trouble lies in finding, hiring and managing talent - where to look, who to trust and how best to manage? It’s a process that often results in wasted time scanning online websites and freelancer databases or money on recruiters: the choice is overwhelming, candidates can be deceptively marketed, workstreams are inefficiently managed across emails and phone.
The problem for freelancers is standing out from the competition and staying on top of their game. Feeling unproductive and distracted, homeworkers cite their lack of coworkers as a problem, with no chance to take a break, swap skills or catch up on industry gossip. Competition is fierce online, with hundreds of other capable and available workers from all over the world bidding for work. Recent findings by the PCG even show that fewer freelancers are choosing to work from home, simply because finding new clients is more effective for those who get out there and network face-to-face.
Here at Regus, we’re launching a new campaign called Regus Connect, which brings together our 45,000+ SME customers, spread over 220 UK business centres, with the freelancers they need, in an environment that freelancers want: local, collaborative and affordable, offering unrivalled opportunities for personal networking with potential clients and peers. We think we have something incredibly exciting on the horizon. We would love to know if you do too.
About the author:
Regus Connect is launching dedicated freelancer hubs across 10 of their UK centres this January 2014. With over 220 business centres across the UK, Regus want you - businesses and freelancers - to vote to determine where. Find out more and vote to bring Regus Connect to your city at www.regusconnect.com - you’ll also win yourself a free 5-day pass to over 1200+ global business lounges in the process.