Herb Weiss: Freelance Economy Can Be Powerful Economic Engine
Tuesday, June 23, 2015
With an honorable discharge from the Navy in 2000 and a degree in business administration he earned at Norfolk University while serving in the military, Salvi came to Providence to be near family. He began his sign painting business at the former Providence-based Tazza Restaurant after an unsuccessful venture in the candle making business, followed by several retail jobs.
Word of mouth advertising about his artistic talent led to more freelance painting opportunities at the Trinity Brew House, RISD’s Second Life, a nonprofit student run recycling material center, and the Camera Werks, to name a few.
Working a full-time retail job pays for his health insurance, for him and his wife, Kate, a self employed photographer and card designer. Salvi estimates that he pulls in around $30,000 a year from his freelancing. “Try buying a Cadillac with that,” he says. But in a blink of an eye he would leave retail forever to make a living from full-time sign painting, he says. “Self employed people do whatever they need to do to pay the bills to do the things they love to do,” he says.
Spotlight on Rhode Island Freelances
According to federal census data released last month, Salvi and his wife join over 73,700 sole proprietors in Rhode Island who earned a total of over $3.3 billion in annual income. These Ocean State residents are self-employed, sole proprietors, freelancers, independent contractors and non-employee small businesses, says Olon Reeder, of Olon Reeder Associates, a public relations consulting firm that represents self employed clients.
The federal census data, culled from 2013 sole proprietor income tax filings from the U.S. Internal Revenue Service, indicate that the top work performed by Rhode Island’s self employed workers included Professional/Technical/Scientific services; Other Non-Governmental services; Real Estate; Construction; and Health and Social services, says Reeder.
Reeder, 56, states that despite an improving jobs market in Southern New England [the latest state unemployment numbers drop to 5.9 percent, the lowest since 2007], it’s still very difficult for many unemployed Rhode Islanders to get back to full-time work. But, the Ocean State has been able to maintain stable job growth, in particular, the state’s freelance workforce, says the North Providence resident and businessman.
Reeder, who has been a public relations consultant for almost 28 years, notes that many sole proprietors active in Rhode Island are “baby boomers” aged 50 and over that are turning to freelance work full time because they were laid off from regular work or early retirees; are encoring into lifelong ambitions they feel are essential in the marketplace; or are working for themselves out of necessity due to long term unemployment.
Nationally, the latest Census Data figures report that for 2013 there were 23 million Americans working solo earning $1 trillion in receipts, that’s up from 2011 figures, which showed at that time there were only 22.5 million people who worked for themselves and collectively earned at that time $989.6 billion, says Reeder..
”The latest figures, from 2013, also show that Rhode Island’s sole proprietors had receipts of $3.3 billion.,” Reeder adds, noting that when compared to similar numbers from 2011, self employment increased by 700 jobs over the last three years (over 200 annually) and income went up by $2 million over the last three years (over $300 thousand annually).
Interestingly, next door in Massachusetts, self employment went dramatically down in the “Bay State,” as Federal figures indicated that only 263,500 freelance workers in 2013, compared to the 471,800 solo workers employed in 2011. Earnings for Massachusetts independents also fell in 2013, with only $15.2 million in receipts, compared to $24.4 million in 2011, he said.
“Finally, Rhode Island has something we do best when it comes to our self-employed workers,” he says, noting that the state now rates better than its next door neighbor. “It’s something we can boast about,” he says.
Self-Employed, an Economic Engine
State and local politicians tend to focus their energy on attracting large companies to the state [like 38 Studios], but tend to ignore the self-employed, charges Reeder, a long time tireless and passionate advocate for self-employed workers. “The self employed are a powerhouse that can no longer be ignored and must be reckoned with,” he says.
“Rhode Island’s self employed are a best kept secret that need to be taken advantaged of to improve our state’s long tern economic development and quality of life,” says Reeder. “Very few businesses create over 200 jobs a year and pay per capita per sole proprietor an average of over $44,000 a year. This is how the freelance economy is changing our lives,” he says.
With the ending of this years’ legislative session, Reeder calls on lawmakers to look down the road to investing in state’s self-employed work force. Usually the General Assembly tackles the tax code to make it more business-friendly for large corporations or targeted industries without considering providing incentives or tax incentives to the state’s self employed.
Like previous years, Reeder opposes any revisiting of placing fees or expansion of sales taxes on services provided by the self-employed. “There must be a level playing field for all business,” he says, ‘everyone should be treated equally.” Reeder believes Rhode Island has become a leader in growing its free lance work force and this could just become a powerful economic engine to revitalize the state’s sputtering economy.
Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues. He can be reached at [email protected]
Related Slideshow: Sensible Advice to the Class of 2015
Charles Bakst, 71, Providence, retired Providence Journal political columnist.
“Stand for something and act upon it.Don’t assume someone else already has done it or will do it. Work to advance yourself but remember there are plenty of people, even right here in Rhode Island, who have not had the advantages you’ve had. They could use a break too. Help them.”
Dave Barber, 60, East Greenwich, Reporter Capitol Television RI State House.
“It’s attitude, not aptitude that will determine your altitude. There is nothing that will serve you better in the future than a positive mental attitude. There are two days in life that never exist; yesterday and tomorrow. Yesterday is history, tomorrow a mystery. Live in the moment. Exercise gratitude and kindness in all that you do because there has never been a statue erected of a critic.”
Rick Roth, 61, Cambridge, MA, Owner of Mirror Image.
“Read because if you don’t know anything you are no good to yourself or anybody else and reading is the key to gaining knowledge. When you are talking (particularly about yourself) you can’t listen. You learn by listening. Try to make the world a better place Pursuit of money is an empty pursuit and will leave you unhappy and dissatisfied.”
Scott A. Davis, 58, Eastside, Owner of the Rhode Island Antique Mall.
“In today’s age of information, simply having knowledge is not worth much. The secret to success in the future will not lie so much in what you know, but in your ability to synthesize information, whether already known or newly acquired, and to draw insightful and valuable conclusions from it.”
Scott Rotondo, 41, Pawtucket, accountant at Tivoli Audio.
“Always be willing to expand your intellectual toolbox. Challenge the way things are done, and your own beliefs from time to time. Take in other people’s opposing points of view not with rancor and disdain but with dignity and respect.”
Lisa A. Proctor, 55, East Providence, healer/counselor.
“You can not necessarily say all things are possible with God because many do not believe, but I would say a lot of situations we find ourselves in heal when we live honestly, purely, committed and have a merciful and compassionate heart towards others.”
Rudy Cheeks, 65, a musician and columnist of Motif, Providence.
“If you can find what you love and make it the center of your life, you’re doing good and will likely be happy. Whatever you do, “building community” should be an element in your life. Meet your responsibilities (e.g. if you want to create your own family, make sure you are ready for it and committed to it). When you become an “active consumer,” be a smart and thoughtful consumer.”
Kathy Needham, 53, Rumford, Controller, of Pawtucket Times and Woonsocket Call.
“Follow this old adage, “Autograph your work with excellence, it is a signature of who you are." Take great pride in all you do but always remember to be humble. Know that success is a personal goal.”
Gayle L. Gifford, 61, Providence, a strategy consultant to nonprofits.
“Be an informed citizen of the world. Read quality news from home and abroad. Travel. Look. Hear. Participate to create the community you want your children and grandchildren to live in. Hopefully that community is one of justice, peace and inclusion. Don’t work all day in a job that destroys what you value. Play outside.”
Crystal R. Parifitt, 41, Pawtucket, Owner of FurBabies, a small pet salon.
“Live within your means, below if you can…owning the biggest and best is overrated. Don’t go after financial gain, choose financial stability because in 20 years you will regret the time you spent ‘chasing’ when you should have been living.”
Nancy Thomas, Cranston, President of Tapestry Communications.
“What you have done has largely been expected of you. Now, what do you expect of yourself! Find more than one thing you can do. Pursue your education. You’re not done. Read, discuss, have opinions. Let the negative inspire you, and the positive be your lens. And, as it has always been, there is no work as important as that of raising a child. Find your path to doing well at both.”
Barbara Peters, Newport, former AARP RI Communications Director.
“Life is full of successes and disappointments. When we are young we tend to “cry” when the material things we want don’t immediately come our way. Forget the disappointments and concentrate on your successes. Nobody will hand you what you think you deserve. [Only] hard work, dedication to your craft and sensitivity to the feelings of others will bring the rewards to you that are truly deserved.”
Cheryl Babiec, Pawtucket, Pawtucket School Teacher.
“As an old saying goes….’One Man’s Junk is Another Man’s Treasure’ continues to hold true with the test of time. One of my yard sale “finds” had the following inspirational verse (though the author is unknown):‘Life is not measured by the number of breaths we take, but by the number of moments that take our breath away.’”
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