Abstract
The advent of the sharing/gig economy has created new forms of employment embedded in new labor practices. Advocates of the sharing economy frame it in salutary terms, lauding its sustainability, decentralization, and employment-generation capabilities. The workers of the gig economy are seen as independent contractors under law rather than employees, and the owners of the gig economy platforms celebrate this categorization as a form of entrepreneurship. In this paper, we use insights from the entrepreneurship literature to examine this claim critically. Taking Uber as an exemplar, we look at the arguments behind the company’s contention that its drivers are actually “partners” who are engaged in entrepreneurship, and demonstrate why these claims are problematic. We utilize a stakeholders’ theory framework that initiates a dialogue between ethics and entrepreneurship in order to focus on the mechanisms that help ensure ethical practices in the sharing economy and to examine the efficacy of these mechanisms. We also discuss the role of the entrepreneurship literature in promoting entrepreneurial behaviors that lead to income inequality. We conclude by arguing that the sharing economy reflects the intensification of an ongoing neoliberal trend that misuses the concept of entrepreneurship in order to justify certain forms of employment practices, and make a case for regulatory oversight.
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Notes
The recent Bureau of Labor Statistics report (https://www.bls.gov/news.release/conemp.htm) indicates that the number of contingent workers accounted for 1.3–3.8% of total employment in May 2017, down from 1.8 to 4.1% in February 2005. Additionally, the survey measured alternative work arrangements separately. The results indicate there were 10.6 million independent contractors (6.9% of total employment), 2.6 million on-call workers (1.7% of total employment), 1.4 million temporary help agency workers (0.9% of total employment), and 933,000 workers provided by contract firms (0.6% of total employment). However, the number of gig workers in the workforce is not clear as some workers have been classified as both contingent workers and having alternative work arrangements. Furthermore, the report is yet to disclose the results of four measures related to “electronically-mediated employment,” which now forms the bulk of gig work (https://www.bls.gov/cps/electronically-mediated-employment.htm).
Labor Force Statistics from the Current Population Survey, https://www.bls.gov/cps/cpsaat02.htm.
Non-Business Bankruptcy Filings by Year, http://www.uscourts.gov/news/2018/03/07/just-facts-consumer-bankruptcy-filings-2006-2017.
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Ahsan, M. Entrepreneurship and Ethics in the Sharing Economy: A Critical Perspective. J Bus Ethics 161, 19–33 (2020). https://doi.org/10.1007/s10551-018-3975-2
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DOI: https://doi.org/10.1007/s10551-018-3975-2