What Is Freelancing? 6 Ways to Make the Gig Economy Work for You

What is freelancing?

According to the Merriam-Webster Dictionary, the word “freelance” was first used in the early 1800s. Then, the term referred to “medieval mercenary who would fight for whichever nation or person paid them the most.”

Since then, the word evolved, even adopting different names among workers. Eventually, freelancing became so widespread that the term “gig economy” was coined.

Nowadays, in the most basic terms, a freelancer is a self-employed person. If you want to become a freelancer, you will most likely earn money by providing specialised services for clients. Most freelancers are employed by companies on either a part-time or contractual basis.

Many try to work as freelancers because they can set their own work schedule and contract for multiple projects or jobs. This means that freelancers can have a better work-life balance than their 9-5 counterparts and may even make more money in the process. Jobs in the programming and the IT industry are some of the most popular freelance services. Many content creators such as writers, video production, and website creation are also able to make a good living freelancing.

What is the gig economy?

The popularity of freelancing has created its own economy, called the gig or freelance economy. According to the report, “the phrase ‘gig economy’ was coined at the height of the financial crisis in early 2009, when the unemployed made a living by gigging, or working several part-time jobs, wherever they could.”

The phenomenon has evidently grown since then. In 2021, the global gig economy is estimated to be worth US$347 billion ; it is projected to grow to $455 billion by 2023, showing a Compound Annual Growth Rate (CAGR) of 17.4%.

Statistics show 7.5% of all the urban employed in Malaysia in 2011 worked in the informal sector. In 2019, this figure went up to 7.9%. As of 2021, Emir Research reports that there are about four million freelancers working in Malaysia, and the number is increasing by the day.

Who works in the freelance industry?

Workers in the field of Web & Graphic Design are most prominent with 30%, followed by workers in Programming at 19% and workers in IT at 10%, according to a report on global freelancer income published by Payoneer in 2020.

The number of global freelancers is no surprise, given how rapidly these types of jobs have grown over time. Technological advances like smartphones have also enabled even more remote work opportunities.

One of the best examples of the gig economy driving economic growth is happening in Malaysia, where the government is getting in on the action.

Malaysian government officials see their country’s gig economy as an opportunity to increase productivity by putting underemployed citizens to work at flexible part-time jobs. The Malaysia Digital Economy Corporation (MDEC), a government entity, has set up several programmes to get underemployed Malaysians onto gig economy platforms, including eRezeki and eUsahawan. The scheme is aimed at people from households in the “B40” or bottom 40% of income.

Because of this, it is not surprising that the government has identified the gig economy as a new source of economic growth which would be made part of the 12th Malaysia Plan 2021-2025, further contributing to the gross domestic product (GDP) of the country.

Why do people freelance? 4 benefits of freelancing

Better technology

These days, what is freelancing without the optimisation of technology? Technology has lowered barriers to entry so much that gigs have become easily accessible to an unprecedented number of people. What was once seen as a side hustle just a few years ago has turned into a trillion-dollar industry with millions of participants.

Younger workforce

Millennials are one of the main drivers of the gig economy. “With a greater influx of millennials into the workforce, all previous assumptions of what works to keep employees engaged and motivated are breaking down,” says Richard Lobo, Head of HR at the Indian IT Company Infosys. He attributes the growing trend of the gig economy to the changing preference of the younger workforce.

Now, industry experts are predicting that the trend of working freelance contracts will continue as Generation Z enters the workforce.

Better pay

It is possible for freelance workers to make more money per task due to their flexible schedules. They are able to decide on how much time they want to spend doing a task instead of working at just one company.

Multiple income streams

Thanks to today’s digital age, gig workers are able to tap into various markets to earn more than one income. The younger generation is then able to generate better income than those who have worked longer in a company.

Better work-life balance

Another reason many choose to freelance rather than find a traditional job is the possibility of a better work-life balance. Freelancers are fed up with the usual 9-to-5 workday and want more flexibility in their schedules. A giant 70% of freelancers confirmed this feeling, proving that it is not just the younger generations who need better quality time outside of employment.

How to begin freelancing: 6 tips for jobseekers

Still thinking “what is freelancing?” Then maybe you should try it out for yourself. You don’t have to take a large leap to freelance. Try it out first and see if it fits your working style. Here are 6 tips on how to make the gig economy work for you.

1. Search online for communities or platforms that offer the kind of work you’re interested in.

The Internet and your ability to navigate search engines are some of your best resources. There are plenty of low-commitment options including food delivery, grocery runs, creative work, and others.

2. Only accept jobs you know you can deliver.

If you hope to generate a sustainable income through freelancing, reliability and professionalism will help you make your mark.

3. Take this opportunity to try different things.

The beauty of these kinds of jobs is that they are on-demand and assignment-based. You can try it for a week or two and see how you feel about it. If it’s not your cup of tea, you are free to walk away whenever you choose to. You might just discover hidden talents you never knew you had!

4. Always check your freelance contract.

The freelance contract puts the roles and responsibilities of both the client and the freelancer in clear terms. It should include the scope of services, remuneration terms, prices and rates, deadlines, and ownership or copyrights.

5. Treat this as a trial of a freelancing career.

Maybe you have been contemplating freelancing for a while but lack the confidence to commit to it full-time. By taking on freelance work on a part-time basis or a few days a week, you will be able to start building up your portfolio and client base, paving the way for you to establish yourself as a professional freelancer.

6. Enjoy what you do.

Yes, seriously. One of the main advantages of the gig economy is its flexibility. You can take on jobs whenever you want. You will always have control over when and how much you work. So smile and enjoy the ride! Your productivity will go up, and your clients will be more appreciative of your positive spirits and diligence.

If you started reading this article thinking “What is freelancing?” then we hope we answered your questions. Start looking for freelance #JobsThatMatter on JobStreet’s website and app. Make sure to keep your JobStreet profile updated and add #WorkNow if you are ready for immediate hiring.

For more career tips, visit JobStreet’s Career Resources page.