ICYMI: Study Finds Rideshare and Delivery Work Tied to New Business Creation

Option to drive with app-based companies, reduces risks for entrepreneurs

CONTACT: Conor Yunits, 857-276-8479, cyunits@solomonmccown.com

BOSTON, MA – February 3, 2022 – Access to the gig economy may help accelerate the creation of new businesses, according to a study conducted by Yael Hochberg, professor in entrepreneurship and finance at Rice University’s Jones Graduate School of Business, and co-authored by John Barrios, assistant professor of accounting at Washington University in St. Louis, and Hanyi Yi, assistant professor of finance at Boston College. 

According to the researchers, entrepreneurs typically finance their ventures through some form of personal savings or loans. Driving with app-based companies offers people an option to drive part-time while building a business of their own, or to fall back on should an opportunity not work out. 

“Having the option to access gig work in the event of failure or other unpredictable situations appears to have huge value in pushing entrepreneurs to accept the risks associated with starting a new business,” Hochberg said.

The study found a 4-6% increase in new business registrations following the arrival of app-based rideshare and delivery companies in a city. 

The researchers note that not all entrepreneurs are necessarily driving with app-based companies, but the reassurance that the option is there for them, with little barriers to entry, provides them with a sense of peace of mind. 

Rideshare and delivery jobs offer people the ability to work whenever they want, wherever they want, as long as they want, and on as many platforms as they want. As shown by this new research, that flexibility can lead to new business creation, and contribute to the overall economic strength and vibrancy of the Commonwealth. A proposed ballot question would enshrine the independence and flexibility that gig workers want and that contributes to our entrepreneurial ecosystem in Massachusetts. 

Learn more about the initiative at yesformassdrivers.org.