The Self-employment Revolution!

To Branson, or not to Branson?

Even corporations are starting to jump on the lifestyle business bandwagon!

More Th>n Business, a division of insurance conglomerate Royal and SunAlliance in the UK has created a site dedicated to a growing group that they call Alterpreneurs...

All over the country, a modern cottage industry culture is spreading and thriving. Skilled people are setting up on their own. But they are not chasing fabulous wealth (though, who would say no to that?), and they don't want to run the next multinational.

They are alterpreneurs. They want to work and have a career and they want a good standard of living. But their ambition goes beyond the material. They want to live comfortably, but they want to do it on their own terms.

For the alterpreneur, success isn't just measured in pounds and pence. It is about running a successful business as part of a happy, healthy, rounded lifestyle.

They've recently published a study (download the pdf here) that counters the prevailing notion of the "enterprise culture" that sees small and micro businesses as a hotbed of ambition and innovation. The study, entitled Health, Wealth, and Happiness, contains some interesting findings...

• There are approximately 3 million microbusinesses in the UK.
• At least 70% of those businesses are alterpreneurs... those who've gone into business to take more control over their lives and to build a lifestyle that suits them.
• Only 23% went into business to make lots of money, and only 3% want to be the next Richard Branson.
• Again, 70% of small business owners said they did not plan to grow the business significantly.
• Health and happiness are bigger priorities than wealth. 57% said they would not take on extra stress even if it meant more money.

I wonder if we would find similar percentages here in North America?

What legacy?

As part of its bankruptcy re-structuring plan, United Airlines  received approval yesterday to default on $9.8 billion in pension obligations, transfering them to the Pension Benefit Guaranty Corp., a federal agency which is itself underfunded.

This comes as more and more corporations are looking for ways to climb out from under massive legacy costs (pensions and benefits owed to retired employees).

General Motors is now blaming high legacy costs for its own current financial woes, while downplaying decades of bad decisions and poor managment.

In 1980, 38% of Americans had defined benefit pensions through their employers. Now it's about 20% and falling. In 1980 the ratio of active to inactive workers in those plans was 3.5-to-1. Now it's 1-to-1. And we haven't even seen the rush of retiring baby boomers yet.

For me, it's yet another sign that relying on a long-term employer to safeguard your future is increasingly becoming an irrational act.

Now, more than ever, we are all self-employed. It's just a matter of to what degree.