There is a lot of talk these days about the “Great Resignation” wave. To start off with, its not just resignations, there also retirements and relocations. But people are not staying home watching Netflix or playing golf, many of these ‘migrants” are starting a new generation of small businesses. It is in a wave of what I call micro-capitalism.
The changes have actually been happening for a while but the pandemic has significantly accelerated them. 5 years ago, when researching labor trends for my book on automation, Silicon Collar, I observed what I called the Alt-Job economy. People were glibly calling it the gig economy – there were many cross-currents underneath. Developers in the iOS ecosystem, people selling arts and crafts on Etsy, franchise owners, ethnic grocers, alternative healthcare practitioners among them – I summarized them in this blog post.
The last couple of years have only increased the fragmentation. Lots more small merchants are taking advantage of micro-fulfillment platforms that Spotify and others provide. Many savvy real estate professionals are launching syndicates with knowledge of regional markets and getting funded via sites like Crowdstreet. VCs are broadly investing LOTS more in startups. According to CB Insights, Global venture funding reached a record $621B in 2021, more than double the 2020 mark of $294B. According to Venture Forward, a multiyear research program from GoDaddy to quantify this entrepreneurial activity, Americans created 2.8 million more online microbusinesses in 2020 than in 2019. If they are not starting new businesses, lots of them are actively trading on platforms like Robinhood.
I have seen it first-hand at home. My daughter is a global traveler and would come back and tell of “digital nomads” working from Chiang Mai and Bali. As the pandemic started, she left her job in the hospitality sector and started a life coaching service and has clients around the world. After a long stint at psychiatric hospitals and clinics, my wife recently retired. But it is not “retire” in the traditional sense of the word. She is inspired by Tom Brady, the ageless quarterback of our home team, the Buccaneers. I am also seeing the “Great Relocation” as countless people move to our state and others like Texas. Some moved because their employers allowed them to work from anywhere. Many others did not move for a job. They are attracted by the potential for a more vibrant, entrepreneurial lifestyle. It is also fascinating to see them move to secondary and tertiary cities. Lots more people want a semi-rural lifestyle and retailers like Tractor Supply Co are growing exponentially as they provide them with poultry and other small farming needs.
Going forward, I plan to cover this trend of micro-capitalism a lot closer. Hopefully, in doing so, I can also help investors with some of their analysis. Ditto with HR and Procurement vendors and professionals who help with talent acquisition/development and supplier diversity. There are some truly profound changes happening in the entrepreneur, talent and supply chain economies.
