QuickBooks Survey Reveals New Era of Entrepreneurship

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–
An estimated 7.6 million Americans will be regularly working as
providers in the on-demand economy by 2020, more than doubling the
current total of 3.2 million, according to a new study and forecast from
Intuit Inc. (Nasdaq:INTU) and Emergent
Research
.

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The study also found that:

  • 79 percent of existing on-demand providers said their on-demand
    activity is part-time.
  • The on-demand labor market will grow by 18.5 percent a year over the
    next five years.

“The rapid growth of on-demand marketplaces is reducing the traditional
friction of finding customers, enabling a new class of entrepreneurs to
find a hungry market for their products and services,” said Alex Chriss,
vice president and general manager of Self-Employed Solutions at Intuit.

“The rise of the on-demand economy is also forcing policy makers,
companies, and concerned citizens to ask important questions about the
future of work and how best to create stability for this new breed of
entrepreneur. At Intuit, we’re committed to creating solutions that
strike a balance between the advantages of innovative business models,
while ensuring that entrepreneurs receive the supports and stability
they deserve.”

Long-term Growth of Contingent Workforce

The rise of the on-demand economy is part of a broader long-term growth
trend in the contingent workforce, which has grown from 17 percent of
the U.S. workforce 25 years ago, to 36 percent today, and is expected to
reach 43 percent by 2020.

The growth of the contingent workforce can be tracked to structural
changes in traditional employment over the past generation. For example:

  • Decline in defined benefit pensions: in 1982 60% of full-time workers
    at U.S. private sector firms were enrolled in defined-benefit pension
    plans. Today, it’s a mere 14%.
  • Growth in average duration of unemployment: from 8.5 weeks in 1980, to
    12 weeks in 2000, to 82.1 weeks in 2015.

Major On-demand Research Study

Intuit and Emergent Research are preparing a major study to be rolled
out over the coming months. The study will provide a detailed analysis
of the demographics, motivations and challenges of workers pursuing
on-demand jobs. Industry leaders participating in the study include Uber,
Upwork (formerly Elance-oDesk), Wonolo,
MBO Partners, OnForce,
Work Market, Visually,
HourlyNerd, and Fiverr,
among others.

“The on-demand economy is poised to transform long-held assumptions
about how the labor market works,” said Steve King, partner at Emergent
Research. “It’s vital that we hear directly from the workers who are on
the front lines of this shift so that we have the objective data and
analysis we need to make informed policy choices.”

Intuit’s QuickBooks Self-Employed

Intuit’s QuickBooks Self-Employed product enables on-demand workers to
manage business and personal finances, handle taxes throughout the year
and meet compliance requirements. Intuit offers the product directly to
on-demand entrepreneurs through partnerships with many of the leading
on-demand economy marketplaces including Uber, Lyft and TaskRabbit.

Forecast Methodology

The current number of people working in the on-demand economy (3.2
million) is based on an online survey of 2,276 adult (18 and older) U.S.
residents conducted between July 27 and Aug. 5.

The forecasted growth to 7.6 million by 2020 was developed by using a
combination of analysis of historical data on the on-demand economy, and
the use of a diffusion of innovation (S curve) model.

The on-demand economy is defined as an online marketplace or application
that connected providers/freelancers with customers. This includes:

  • Transportation and/or logistics for people or products (e.g. Uber,
    Lyft, Grub Hub)
  • Finding work via online talent marketplaces (e.g. Upwork, OnForce,
    Work Market HourlyNerd, Fiverr)
  • Renting out space (e.g. Airbnb, Couch Surfing, etc.)
  • Providing other miscellaneous services (e.g. Task Rabbit, Gig Walk,
    Wonolo).

About Emergent Research

Emergent Research is a
research and consulting firm focused on identifying, analyzing and
forecasting the key demographic, social, technology and economic trends
and shifts impacting business and society. Emergent Research partners,
Steve King and Carolyn Ockels, are co-authors of the Intuit
2020 Report
and the Intuit
Future of Small Business Report Series
.

About Intuit Inc.

Intuit Inc. creates business and
financial management solutions that simplify the business of life for
small businesses, consumers and accounting professionals.

Its flagship products and services include QuickBooks®,
Quicken® and TurboTax®,
which make it easier to manage small
businesses
and payroll
processing
, personal finance,
and tax preparation and filing.
Mint.com provides a fresh, easy and
intelligent way for people to manage their money, while Demandforce®
offers marketing and communication tools for small businesses. ProSeries®
and Lacerte® are Intuit’s
leading tax preparation offerings for professional accountants.

Founded in 1983, Intuit had revenue of .5 billion in its fiscal year
2014. The company has approximately 8,000 employees with major offices
in the United States, Canada,
the United Kingdom, India
and other locations. More information can be found at www.intuit.com.

Source: Intuit Inc.

Intuit Inc.
Steve Sharpe, 650-224-2362
stephen_sharpe@intuit.com
or
Access
Communications
Jen Garcia, 415-844-6244
jgarcia@accesspr.com