The rise of microbusiness

I think that 2009 will be the rise of the microbusiness. In today’s technology world, a win is no longer getting hired as an engineer at IBM or a marketer for Microsoft. Rather, it is finding clients as an independent “consultant” or working with a small startup that sees some element of success.

According to TechCrunch, more than 100,000 layoffs occurring in the tech sector at the end of 2008. And some of the largest numbers came from large enterprises. No longer is joining an established tech company a refuge for talented people who find themselves jobless as companies such as Sony, 3M and AT&T announcing heavy cuts.

The rise of the microbusiness

Using TechCrunch’s numbers, this is more than 100,000 people that are looking for a paycheck. Not necessarily a career, but a paycheck. They are taking freelance development and design gigs, working with staffing agencies or services such as Elance and building a modest client base.

But a decision will need to be made. Do they continue down the freelance path or seek the stability, opportunity and shelter of a full-time job? Freelancing is a contact sport these days and strong, talented and effective people will survive.

Unfortunately, most statistics aren’t current, but to give you some idea of what I’m talking about, here are some stats I was able to find:

• According to the US Census Bureau, 17,646,062 firms existed in 2002 that were classified as “nonemployers.” This meant that they were one-person businesses. This represented more than two-thirds of all businesses in the US at the time.
• By 2004, the number of nonemployer firms was 19,523,741.
• In 2004, of the 5,885,784 firms with paid employees, 3,821,128 had fewer than 10 employees.
• Sole proprietorships can be lucrative. According to BizStats, Internet publishing-Broadcasting businesseshad a net profit margin of nearly 65% in 2004.
• According to SCORE, there were 637,100 new businesses, 560,300 business closures and 28,322 bankruptcies in 2007.

These numbers show that we’re not afraid to venture to new, uncharted territory. When we take control of our own destinies, we are able to shape our lives to fit our ideal. What is your ideal?

Charting the path

This is where technology comes into play. Building a product is easier, cheaper and faster than ever. Social media and social networking are eliminating a lot of the overhead and burn that would consume an investment. Social networks, blogging and social advocacy are making it easy to create a network of passionate users.

All of these changes will make it easier for entrepreneurs to venture out as sole proprietors and make a product or a service that works. Sure, there will be some casualties. There always is. But, what makes microbusinesses different is the sef-reliance, bootstrapping mentality will come back into vogue. New avenues will be explored and new revenue streams will be identified.

What will you do to make your microbusiness succeed? How will you move your idea forward and make your microbusiness succeed?