How do I make money through business?
A new study from McKinsey & Co. suggests that the best way to make money is by doing it yourself.
Read moreA survey of more than 1,500 entrepreneurs, which was conducted by McKinsey, shows that the most effective way to earn money is through freelancing.
The study, entitled “A Career in the Digital Age: An Entrepreneurial Entrepreneuria Perspective”, reveals how people choose to work in the digital economy and how they get paid.
It says that “digital is more than just the internet; it is the digital frontier, and digital is now more important than ever for businesses, consumers and the broader economy.”
“A digital business requires a diverse and innovative workforce that can adapt to changing business demands and adapt to a rapidly changing marketplace,” it adds.
McKinsey says freelancing has “great potential for job growth” and can “provide a way to keep a tight end on your hours, pay your bills, and focus on the work you love”.
In its report, McKinsey says “the most successful entrepreneurs use digital tools to increase their skills, build their network and become more productive.
These tools can be used to manage their digital assets and share their ideas and knowledge”.
The firm says the most successful people who use the platform are “experts in a variety of fields”.
In this regard, it cites the case of “The Pirate Bay” co-founder Gottfrid Svartholm Warg, who “grew a large community of users and followers in just two years” and was able to earn $200,000 in one year by selling his work to the music streaming service Spotify.
“With a growing number of high-growth businesses and a global audience, the digital age is creating a more diverse workforce that is able to respond to the needs of their clients and the evolving needs of society,” it says.
This year, the study found that people from all walks of life were increasingly turning to freelancing for employment, with nearly half of those who responded to the survey saying they worked for their own work or for a company.
“The growth in the number of freelancers is driven by two trends: the growth of online platforms, and the rapid growth of the internet,” the firm says.
“We believe that a growing proportion of those freelancers are looking for ways to earn a living through their own skills.
This is an opportunity to take on a more significant role in the lives of others.”
The survey asked respondents how much they would pay for a job on their own and how many hours they would work per week, as well as what sort of work they would be interested in.
About 90 per cent of respondents said they would prefer to work for themselves, with 20 per cent saying they would rather work for a colleague or co-worker.
Almost one in five freelancers said they had worked from home, with more than one in four saying they were not currently paying for their housing.
The most successful freelancers were “experienced entrepreneurs who have been in the industry for a long time”, the report said.
McKenzie and the McKinsey study also found that freelancers make “a great start” to their careers, with about one in six freelancers earning more than $100,000.
“It is very difficult for most entrepreneurs to get started, but the majority of freelancing opportunities are within their first few years of work,” the report says.