The rise of the micro-entrepreneur

I don’t know about you but it sure seems there are a lot more micro-entrepreneurs around these days. I define a micro-entrepreneur as someone who makes at least some self-employment income but it is not necessarily their primary source of income.

This weekend we visited a pop-up market in Moncton that a wonderful crepe maker, cheese cake baker and a host of small shops peddling various knickknacks. My daughter and I were discussing the economics of these tiny entrepreneurs and most of them might net $10k-$20k or so per year after expenses. In addition to small vendors these micro-entrepreneurs are doing a host of other ‘gig’ type jobs - again usually as a supplement to their main income or while they study.

One small step up is the artisans that are trying to turn an idea into something big. Think about all the jams, whisky infused maple syrup, hot sauces, beers, coffees and other artisan foods that are emerging. In every city and town you will find someone looking to turn the image of a moose or lobster on a product that will turn to gold.

For me this class of micro-entrepreneurs adds a richness to the local economy. It’s products tied to place. It provides an additional value to many of us to know that a local entrepreneur is behind the product. My daughter was marveling at how we will spend 2-3 times as much for an artisan jam compared to a basic one in the story but from an economic development perspective I would much rather you spend your surplus disposable income to purchase something that was value-added here than on a German car or Italian handbag.

As long as these micro-entrepreneurs are not trying to live on $15K - I think this trend - if it is a trend - is a good one for local economies around the province and region.

How it might or might not impact government tax revenues is a conversation for another day. The fact that the number of people reporting self-employment income on their tax forms across the province hasn’t really increased in a decade might indicate that I am wrong about this trend or the income earned isn’t showing up on annual personal income tax filings.