What the Changing Nature of Work Means for Entrepreneurship

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Entrepreneurship has long been the path many Americans traveled to economic independence. For founders, entrepreneurship provides the means to create wealth for themselves and value for society. But for most Americans, entrepreneurship matters because entrepreneurs create jobs. Today, however, traditional aspects of the employee-employer relationship are changing—with some of these changes being brought about by the business models of young, innovative rms. There is debate about whether these changes are good or bad. But one thing is certain, the changing landscape of work has implications for both economic independence and the future of entrepreneurship.

Research suggests that the emergence of the platform economy diminishes certain kinds of entrepreneurial activity. However, it is lesser- quality entrepreneurial ventures that are not started, as people choose the platform economy as a less risky option than entrepreneurship.

While entrepreneurship is an important option for securing economic independence, the risk of failure isn’t necessarily something everyone can tolerate. The platform economy has the potential to ll this gap for those who value independence in their work but want less risk than starting their own company.


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