Free Agency
Dan Pink is the former chief speech writer for Vice President Gore, and a contributing editor to Fast Company magazine. He wrote the important article, "Free Agent Nation", in Fast Company last year, which describes how the human element of the marketplace is changing, and he is completing the soon-to-be-published book on the subject. Dan has visited with us on The Small Business Advocate Show several times to help us develop the concept of small business free agency.As Dan points out, Curt Flood, the outstanding centerfielder with the St. Louis Cardinals in the 50s and 60s, is actually the person who put free agency on the map. Curt's quest was to be able to determine where he collected his salary. The free agents Dan and I talk about identify with Mr. Flood's independence, but unlike professional athletes, may not even have a salary. At least not a guaranteed one. Dan's free agents are independent contractors, self-employed entrepreneurs, sole proprietors. My perspective is a little broader. I just call them my heroes, small business owners.
When you think about it, working for a major corporation is largely a 20th century phenomenon. More and more, we Americans are, by design or necessity, reverting to our original pioneer elements: self-reliance, independent spirit, self-determination, OWNERSHIP. Want proof? During the 5 year period from 1992-97, America experienced a net growth of 12 million jobs. During that same period major corporations posted a net loss of 500,000 jobs. It isn't difficult to figure out where those 12.5 million jobs came from. That's right, my heroes, small business owners created them. Many of them one job at a time by Dan's free agents.
In his research Dan found that free agency is becoming mainstream. A recent study by The Kauffman Center supports Dan's finding. The study found that one in twelve Americans are actively trying to start a small business, and 91% of Americans view starting a small business positively. Furthermore, this survey's results are supported by the U.S. Small Business Administration's report of over 800,000 new small business start-ups in 1998, up from 700,000 in 1991. The SBA also predicts this number will grow to 1 million new small businesses annually by 2010.
These are exciting times for small business. The entrepreneurial soil in America is very fertile: Strong economy, access to capital, the Internet and other electronic capability leveling the playing field so that us little guys actually compete successfully with the Big Dogs. Millions of Americans have said, "I don't want to punch a time clock, I want to work for myself." They are trading in their employee report card, the W-2, for the small business owner's report card, the balance sheet.
Are you a free agent? I am, and have been for over 10 years. Dan has been for about three years. As you will see in the next topic, it's not all fun and games. There are no guarantees. But for most of us, the worst day as a free agent is better than the best day as an employee.
Write this on a rock... If you are that one in twelve who has been planning to start a small business, there has never been a better time to do it. But don't forget, as a free agent you eat what you kill.
Look for Dan Pink's new book, Free Agent Nation, wherever books are sold.
