Freelance Economy Can Be Powerful Economic Engine

Published in Pawtucket Times on June 22, 2015

Last week, it took three days for Sign Painter Jayson M. Salvi to put the final touches on the façade of the Camera Werks on Hope St.   As he sat on the pavement printing the signage, passerbuyers would stop and chat, admiring his craft.

For the 41-year-old Salvi, his passion for sign painting began in high school, ultimately continuing in his eight year stint in the U.S. Navy.  Salvi says that he usually ended up painting logos and signs on doors wherever he was assigned.

With an honorable discharge from the Navy in 2000 and a degree in business administration he earned at Norfolk University while serving in the military, Salvi came to Providence to be near family.  He began his sign painting business at the former Providence-based Tazza Restaurant after an unsuccessful venture in the candle making business, followed by several retail jobs.  Word of mouth advertising about his artistic talent led to more freelance painting opportunities at the Trinity Brew House, RISD’s Second Life, a nonprofit student run recycling material center, and the Camera Werks, to name a few.

Working a full-time retail job pays for his health insurance, for him and his wife, Kate, a self employed photographer and card designer.     Salvi estimates that he pulls in around $30,000 a year from his freelancing.  “Try buying a Cadillac with that,” he says.  But in a blink of an eye he would leave retail forever to make a living from full-time sign painting, he says. “Self employed people do whatever they need to do to pay the bills to do the things they love to do,” he says.

Spotlight on Rhode Island Freelances

According to federal census data released last month, Salvi and his wife join over 73,700 sole proprietors in Rhode Island who earned a total of over $3.3 billion in annual income. These Ocean State residents are self-employed, sole proprietors, freelancers, independent contractors and non-employee small businesses, says Olon Reeder, of Olon Reeder Associates, a public relations consulting firm that represents self employed clients.  .

The federal census data, culled from 2013 sole proprietor income tax filings from the U.S. Internal Revenue Service, indicate that the top work performed by Rhode Island’s self employed workers included Professional/Technical/Scientific services; Other Non-Governmental services; Real Estate; Construction; and Health and Social services, says Reeder.

Reeder, 56, states that despite an improving jobs market in Southern New England [the latest state unemployment numbers drop to 5.9 percent, the lowest since 2007], it’s still very difficult for many unemployed Rhode Islanders to get back to full-time work.  But, the Ocean State has been able to maintain stable job growth, in particular, the state’s freelance workforce, says the North Providence resident and businessman.

Reeder, who has been a public relations consultant for almost 28 years, notes that many sole proprietors active in Rhode Island are “baby boomers” aged 50 and over that are turning to freelance work full time because they were laid off from regular work or early retirees; are encoring into lifelong ambitions they feel are essential in the marketplace; or are working for themselves out of necessity due to long term unemployment.

Nationally, the latest Census Data figures report that for 2013 there were 23 million Americans working solo earning $1 trillion in receipts, that’s up from 2011 figures, which showed at that time there were only 22.5 million people who worked for themselves and collectively earned at that time $989.6 billion, says Reeder..

”The latest figures, from 2013, also show that Rhode Island’s sole proprietors had receipts of $3.3 billion.,” Reeder adds, noting that when compared to similar numbers from 2011, self employment increased by 700 jobs over the last three years (over 200 annually) and income went up by $2 million over the last three years (over $300 thousand annually).

Interestingly, next door in Massachusetts, self employment went dramatically down in the “Bay State,” as Federal figures indicated that only 263,500 freelance workers in 2013, compared to the 471,800 solo workers employed in 2011. Earnings for Massachusetts independents also fell in 2013, with only $15.2 million in receipts, compared to $24.4 million in 2011, he said.

“Finally, Rhode Island has something we do best when it comes to our self-employed workers,” he says, noting that the state now rates better than its next door neighbor. “It’s something we can boast about,” he says.

Self-Employed, an Economic Engine

State and local politicians tend to focus their energy on attracting large companies to the state [like 38 Studios], but tend to ignore the self-employed, charges Reeder, a long time tireless and passionate advocate for self-employed workers.  “The self employed are a powerhouse that can no longer be ignored and must be reckoned with,” he says.

“Rhode Island’s self employed are a best kept secret that need to be taken advantaged of to improve our state’s long tern economic development and quality of life,”  says Reeder.  “Very few businesses create over 200 jobs a year and pay per capita per sole proprietor an average of over $44,000 a year. This is how the freelance economy is changing our lives,” he says.

With the ending of this years’ legislative session, Reeder calls on lawmakers to look down the road to investing in state’s self-employed work force.  Usually the General Assembly tackles the tax code to make it more business-friendly for large corporations or targeted industries without considering providing incentives or tax incentives to the state’s self employed.

Like previous years, Reeder opposes any revisiting of placing fees or expansion of sales taxes on services provided by the self-employed.   “There must be a level playing field for all business,” he says, ‘everyone should be treated equally.”.

Reeder believes Rhode Island has become a leader in growing its free lance work force and this could just become a powerful economic engine to revitalize the state’s  sputtering economy.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues.  He can be reached at hweissri@aol.com.

 

 

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Olon Reeder’s Fix for an Ailing State Economy

Published on RIfutures.org, July 18, 2014

Olon Reeder, a slight-figured, unassuming, behind-the-scenes kinda guy, has been quietly improving the quality of life in northern Rhode Island for decades as a public affair adviser for the Blackstone Valley Tourism Council.  With his years of working in the public sector, as legislative assistant with the Rhode Island General Assembly in the mid-to-late 1970s, with the Garrahy administration, state agencies and with small businesses, he’s authored a nontraditional economic development policy paper he hopes will be considered in next year’s Rhode Island General Assembly debate as to how to create a more vibrant business environment in the Ocean State.

Over the years, Reeder, President of Reeder Associates, a Southern New England-based public relations and multi-media communications company, has seen state lawmakers and its economic development agency attempt to compete with surrounding states, just going after “larger, trendy, projects to turn the economy around. “Smaller companies would always get the short end of the stick, because they were not seen as a viable economic generator,” he says, stressing that this perception is inaccurate.

In recent years economic development solutions to fix the state’s ailing economy have been floated for public debate by lawmakers, economic development professionals or by large corporations. Today, Reeder, with almost 40 years of in the public and private sectors, calls on state lawmakers to consider his proposal when they focus on economic reform in next year’s session. More needs to be done, says the small businessperson who is a Native Rhode islander.

It’s almost like Mr. Reeder goes to Smith Hill, to take on the establishment to be heard.

“We are at a critical crossroads where we must overcome our negatives attitudes and start taking actions ourselves if we all want our state and our lives to become successful,” Reeder wrote in a recently released policy statement detailing his suggested economic development action agenda, as how to improve the state’s long term quality of life, through investing in people, communities and small businesses.

He calls for tying lifelong education to grow the economy. “Brain power is a key element driving worldwide demands and economic activity today, through the convergence of non stop knowledge, creative economy, enterprise and innovation, art-design connections, which all start with lifelong learning,” he says.

He says personal empowerment creates the environment for change “Empowerment encourages, and develops the skills for, self-sufficiency, giving people the abilities and knowledge that will allow them to overcome obstacles in life or work environment and ultimately, help them develop within themselves or in the society,” he says.

Companies are constantly replacing full-time employees, he said, and now relying upon independent contractors, where people who once counted on a steady pay check are now being left to fend for themselves in a hyper-competitive self-employed market. These individuals are oftentimes forgotten by policy makers.

Based on 2011 figures from the US Bureau of Labor Statistics, in Rhode Island, there re over 73 thousand self-employed contributing over $3 billion annually to the state’s economy. Most self-employed are hired out of necessity, are done so locally and through word of mouth. Because freelancers depend so much on self promotion to get their jobs, they must focus on the local markets, along with showcasing their diverse personal talents, marketing their skills to business owners in their community, along trying to compete with others for opportunities.

Reeder recognizes the importance of valuing our places, spaces and communities, to grow business. “More than ever, people must be connected to where we live, work, play, stay and travel. People expect places and spaces they interact with daily to be vibrant, active, socially appealing, culturally stimulating and help them in improving their quality of life, especially with their physical and mental health,” he says.

Reeder notes active living communities provide opportunities for people of all ages and abilities to engage in routine daily physical activity, he says, like pedestrian and bicycle friendly design, access to intermodal transportation, mixed use development, ample recreation, walkable neighborhoods, access to fresh and healthy foods and commerce centers. This philosophy must be included in any state economic development plan.

“Our economic revitalization is relevant to healthy and sustainable communities because active living communities encourage individuals to be more physically active, improving health by lowering citizens’ risk for health conditions, adds Reeder. “Active living communities create enhance quality of life, attract business and knowledge workers, and contribute to ongoing economic development,” he says.

Reeder stresses that technology is a must, as people are now “required” to have 24/7 365 access to the Internet and must now communicate through social media to live, work, and transact personal activity, he calls for providing everyone with free online access “as a necessity of our 21st century lifestyles.”  Finally, Reeder thinks “Demand Driven Experiences” are necessary for not only reinventing our state’s manufacturing, but in changing our self attitudes about how Rhode Islanders see themselves, ultimately affecting expectations others may have about the perception of Rhode Island as the worst place for business.

“Because people no longer buy things for their personal benefit, they want enhancements to fulfill missing elements of their lives,” adds Reeder, noting that experiences are crucial for businesses and locations as a branding and marketing tool, especially with efforts in Rhode Island attracting people to live and travel here for our entertainment, food and lifestyles.”  “Using our experiences to effectively promote market and give an iconic brand, we must also stay true to the “real Rhode Island,” to our proud independent and working class heritage, the ethnic and cultural diversity in our state, and preserving our unique natural resources,” he says.
State lawmakers are moving in the right direction to make Rhode Island a more business-friendly place to operate. Reeder continues his efforts to get his voice heard by General Assembly leadership, state policy makers, business groups, even gubernatorial candidates. Hopefully, they will choose to closely listen to Reeder’s nontraditional approach to economic development and to small business owners who know their specific needs to operate successfully.

– See more at: http://www.rifuture.org/olon-reeders-fix-for-the-states-ailing-economy.html#sthash.86LrWZAH.dpuf

Herb Weiss, “LRI ’12, is a Pawtucket-writer covering aging, health care, medical, and business issues.  He can be reached at hweissri@aol.com.

 

 

Olon Reeder’s Fix for the State’s Ailing Economy

Published in Pawtucket Times, July 11, 2014

As the 2014 General Assembly session ended, CNBC released its annual Top States for Business rankings. It was not good news for the Ocean State. According to the report’s findings, Rhode Island finished last among the 50 states for the third time in the last four years. States were ranked in these 10 categories: cost of doing business, economy, infrastructure, workforce, quality of life, technology and innovation, business friendliness, education, cost of living and access to capital.

After the release of the scathing report, CNBC senior correspondent Scott Cohn caught up with Governor Chafee in Chicago, attending a regional Democratic Governors Association conference, who gave his thoughts to the report’s outcome. Rhode Island was on an upswing with the state putting funding into education, infrastructure and workforce development.

Reviving Up the State’s Economic Engine

Yes, as Chafee noted, a Rhode Island Senate staffer says that economic development was a priority on Smith Hill this year.

Gregg Parė, the chamber’s Director of Communication, says state lawmakers agreed with Chafee’s positive assessment of the progress made to make the state more competitive. “Many important components of the Senate’s Rhode to Work action plan to improve the skills of the existing workforce as well as the workforce of tomorrow were passed by the Assembly,” he noted.

Paré notes a centerpiece of the Road to Work plan was placing responsibility for coordination of workforce development with the Governor’s Workforce Board. Legislation was passed to accomplish this, ensuring that Rhode Islanders can access the training programs they need in a timely and effective way, he said.

“Additionally, the Jobs Development Fund was exempted from “indirect cost recovery,” which had directed a portion of the employer funded program for workforce development to the state. This provides an additional $1.2 million for worker training programs,” adds Paré.

Paré detailed some educational reforms that were addressed by lawmakers this year. The Board of Education was directed to seek lower cost but equally effective high school equivalency tests to the GED, and to reinstate a hardship waiver of fees for low-income test takers. This removes a potential barrier for obtaining an equivalency which can open doors to employment opportunities,” he says. Enacted legislation also provided more time for those receiving cash assistance to undergo training programs, and to provide professional development for high school counselors to ensure they are helping students as they enter today’s workforce. Passed legislation also helps communities transition to full-day kindergarten, a proven, effective way to better prepare students for success in school.

Paré says the newly enacted budget invests in initiatives the Senate has worked on for years which will have long-term benefits for the economy. “The Senate’s 2013 Moving the Needle report recommended reducing the corporate tax, which the 2015 budget reduces from 9 percent to 7 percent. At the same time, it shifts the method of corporate tax assessment to a single sales factor, which removes a disincentive for investing in jobs and property in Rhode Island. The budget also eliminates the cliff on the estate tax, and increases the exemption to $1.5 million.”

Summing up the legislative session, Senate President Teresa Paiva Weed said: “The budget invests in Rhode Island’s future. The reduction of the corporate tax rate and increase in the estate tax threshold help to make Rhode Island more competitive. The transportation infrastructure fund invests in the state’s roads and bridges. Our many initiatives in the area of job training will help the state’s economy continue to move in the right direction. I’m very confident that those initiatives will help students coming out of schools seeking employment as well as the state’s older workforce which is seeking employment.”

We Have More Work to Do

But, while it may have been a banner your for economic development reforms, Olon Reeder, President of Reeder Associates, a Southern New England based independent public relations and multi-media communications practice, calls on Rhode Island’s lawmakers to continue their focus on economic reform in next year’s session. More needs to be done, says the small businessperson, former public official and former award-winning media personality.

With the State of Rhode Island coming up with a new comprehensive economic policy early next year, the North Providence resident recently released his suggested economic development action agenda, as how to improve the state’s long term quality of life, through investing in people, communities and small businesses.

“We are at a critical crossroads where we must overcome our negative self attitudes and start taking actions ourselves if we all want our state and our lives to become successful,” says Reeder.

In his economic platform, Reeder calls for tying lifelong education to economic growth. “Brain power is a key element driving worldwide demands and economic activity today, through the convergence of non stop knowledge, creative economy, enterprise and innovation, art-design connections, which all start with lifelong learning,” he says.

Reeder says personal empowerment creates the environment for change “Empowerment encourages, and develops the skills for, self-sufficiency, giving people the abilities and knowledge that will allow them to overcome obstacles in life or work environment and ultimately, help them develop within themselves or in the society,” he says.

Reeder observes that companies are constantly replacing full-time employees and now relying upon independent contractors, where people who once counted on a steady pay check are now being left to fend for themselves in a hyper-competitive self employed market.

Based on 2011 figures from the US Bureau of Labor Statistics, in Rhode Island, there re over 73 thousand self-employed contributing over $3 billion annually to the state’s economy. Most self-employed are hired out of necessity, are done so locally and through word of mouth. Because freelancers depend so much on self promotion to get their jobs, they must focus on the local markets, along with showcasing their diverse personal talents, marketing their skills to business owners in their community, along trying to compete with others for opportunities.

Reeder recognizes the importance of valuing our places, spaces and communities. “More than ever, people must be connected to where we live, work, play, stay and travel. People expect places and spaces they interact with daily to be vibrant, active, socially appealing, culturally stimulating and help them in improving their quality of life, especially with their physical and mental health,” he says.

Reeder notes active living communities provide opportunities for people of all ages and abilities to engage in routine daily physical activity, he says, like pedestrian and bicycle friendly design, access to intermodal transportation, mixed use development, ample recreation, walkable neighborhoods, access to fresh and healthy foods and commerce centers.

“Our economic revitalization is relevant to healthy and sustainable communities because active living communities encourage individuals to be more physically active, improving health by lowering citizens’ risk for health conditions, adds Reeder. “Active living communities create enhance quality of life, attract business and knowledge workers, and contribute to ongoing economic development,” he says.

Reeder noted that technology is a must, as people are now “required” to have 24/7 365 access to the Internet and must now communicate through social media to live, work, and transact personal activity, he calls for providing everyone with free online access “as a necessity of our 21st century lifestyles.”

Finally, Reeder thinks “Demand Driven Experiences” are necessary for not only reinventing our state’s manufacturing, but in changing our self attitudes about how Rhode Islanders see themselves, ultimately affecting expectations others may have about the perception of Rhode Island as the worst place for business.

“Because people no longer buy things for their personal benefit, they want enhancements to fulfill missing elements of their lives,” adds Reeder, noting that experiences are crucial for businesses and locations as a branding and marketing tool, especially with efforts in Rhode Island attracting people to live and travel here for our entertainment, food and lifestyles.”

“Using our experiences to effectively promote market and give an iconic brand, we must also stay true to the “real Rhode Island,” to our proud independent and working class heritage, the ethnic and cultural diversity in our state, and preserving our unique natural resources,” he says.

State lawmakers must be commended for their successful efforts to slash regulation and enact laws to make Rhode Island a more business-friendly place to operate. At press time, Reeder, a Rhode Island native, whose family has been very prominent in Southern New England for over four generations in small business, real estate, building contracting and public service, continues his efforts to get his voice heard by General Assembly leadership, state policy makers, business groups, even gubernatorial candidates.

Hopefully, they will choose to closely listen to Reeder and others who may well hold the keys to fixing Rhode Island’s sluggish economy.

Herb Weiss, LRI ’12, is a writer who covers aging, health care, medical issues, and the economy. He can be reached at hweissri@aol.com.

 

Regular Folks Give Advice to Graduates

Published in Pawtucket Times, May 23, 2014

This month, commencement speakers at Rhode Island’s Colleges and Universities will give the Class of 2014 their tips on how they can successfully find their professional niche, in a state with the distinction of having the worst employment rate in the nation and continues to be one of the last states to see an economic revival.  Rhode Islanders are also known for their inferiority complex and general attitude about the quality of life in the state.

Robed graduating seniors will sit listening closely to commencement speeches, given by very well-known lawmakers, judges, television personalities and Business CEOs, detailing their observations and advice, and how if closely followed, just might give the graduates a more rewarding personal and professional life.

 Typically a commencement speech (the length being about 10 minutes) is given by a notable, successful, stimulating figure well-known in the community, nationally or internationally. While some colleges and universities may enhance their prestige by bringing in high-profile speakers (University of Rhode Island, Rhode Island School of Design, Roger Williams University, and Providence College) sometimes at great cost, others like Brown University, unique among Ivy League institutions, features graduating seniors, rather than outside dignitaries, as their commencement speakers. This year, Rhode Island College,
under graduate and graduate commencement speakers are Rhode Islanders.

So, I say to Presidents of Colleges and Universities, with your tight budgets you can save a little money by not bringing in high paid commencement speakers. As can be seen below, there are many potential    commencement speakers in local communities throughout the state who fly below the radar screen and can give college graduates sound strategies for success gleaned from their life experiences. They give road maps on how one can live a more healthy fulfilling life, mature in a way to realize their potential and age gracefully in a challenging and quickly changing world.

Jesse Nemerofsky, 60, Providence, Professional Commercial Photographer. “Always remember that everyone you meet in life can be a potential or future client. This being said, a positive introduction of yourself is a valuable way to be called to work together on projects, even to be hired for future jobs. George H. W. Bush, 41st President of the United States, has stated in interviews that when he meets someone he gets their business card, and at birthdays, Christmas time, or when the person is honored, he sends them a personal note. By taking time to acknowledge people over the lifetime of his career, the former President is highly respected by those he has encountered, even if his political position or business venture was successful or not.   Honesty and representing your capabilities is of course of the utmost importance, and small gestures like sending a personal note can ultimately have great impact, but excellence in your work should be your main goal.”

Michael Cassidy, 66, Pawtucket, Retired. “As you go into the ‘real’ world from the sheltered ‘world of college’ don’t be too quick to judge the new people you meet in the work place.  People come in all types, sizes, shapes, temperaments, personalities, ages, and backgrounds; and they all have their own experiences from which you can learn. If you are smart enough to listen to what others have to offer, you can learn from them not only what to do, but what not to do. And most times learning what not to do is the most valuable lesson you can have.”

Olon Reeder, 55, North Providence, Reeder Associates Public Relations. “Become adaptable to constant changes in your life. Today’s global environment demands that you must become faster, better and smarter and compete with yourself and everyone else to survive socially. You have to embrace non-stop learning, empower yourself with your own resources, have an independent attitude and create value for who you really are and what you want to be to shape your quality of life for the future!”

Michelle Godin, 50, Vice President, New England Economic Development Services, Inc. “Live each day of your life with integrity. Whether in your personal life or professional life, integrity will define you as a person.  Never waiver.  When your days on earth are ended, it is your integrity that others will remember.   Those who live with integrity will be fondly remembered and missed, because with integrity comes many other admirable qualities such as compassion, empathy, tolerance, and understanding.  Those lacking integrity will be discussed with disdain and quickly forgotten.  Choose to become exemplary.”

Paul Audette, 85, Pawtucket, semi-retired businessman.The Youth of today — from puberty to whatever age one reaches maturity – tend to see life as it pertains to them, yet each person is responsible for him or herself.  While the youth may have the knowledge, they lack the life experience which is the main factor in making good sound judgments that ultimately affect (your) well-being as well as that of your loved ones. While experience cannot be taught, it cannot be overlooked as a major component in making sound decisions that affect your future.experience comes from living – and life is a journey.”

Joan Retsinas, 67, Providence, a writer. “Savor, savor, savor. Savor the sunshine, and the rain. Savor your friends, your family, your colleagues. Nurture the people close to you. Be a friend. Fall in love. If you fall out of love, fall in again. Read “Winnie the Pooh” to a child. Eat ice cream. Ride a bike. Swim in the ocean. Laugh. As for fame, fortune, and success, don’t fret. They don’t really matter.”

Rick Wahlberg, 61, Senior Project Manager, Blue Cross & Blue Shield of Rhode Island. Be Useful, there is no feeling like making the world a better place. Be Aware, strike a balance between career, family, friends, and community. Be Grateful for what you have, don’t be jealous of what you don’t have, and share.

Wendy Jencks, 61, Cumberland, Visitor Center Manager, Blackstone Valley Visitor Center. “There may be a time in young people’s lives when they are nervous to take a risk, don’t be afraid to take a chance. If an opportunity/life experience arises and you want it, take it even if it is unconventional. You may not get another opportunity again. Also, a person’s first job is not the end all be all. Your dream job may actually be something you did not study. People confine themselves to their own walls.”

Larry Sullivan, 49, Pawtucket, Director, Net Compliance Solution’s technical & consulting services. “Recognize opportunity. If you can’t identify opportunities, then they are very likely to sneak past you unnoticed. Most people’s search criteria is so narrow in focus that it can essentially blind them to opportunities available right in front of their face. It’s the old “can’t see the forest for the trees” scenario. Also, see yourself as a valuable asset. Your self-image will make a huge difference in the type of opportunities you attract to yourself. If you see yourself as a valuable asset, and you present yourself as such, others will see you that way as well.”

Denise Panichas, 50, Woonsocket, Executive Director of The Samaritans of Rhode Island. “Respect cannot be given when asked for, it has to be earned.” This is something you learn later in life. How do you earn respect from those around you? By being true to yourself – your values, beliefs and most importantly to your commitments to family, friends and the community.”

Ken McGill, 51, Pawtucket, Register of Voters, City of Pawtucket. “Find time to give back to your community. In the years to come you will be looking for a good job, getting married, having children and getting on with life. Never forget those in need in your community. Mentoring children, giving time to a soup kitchen, volunteering to help civic groups in your city or town or just helping a neighbor will give you more reward than any salary or position in the corporate world.“

Gail Solomon, 59, Pawtucket, Gail Solomon, Inc., a graphic design company. “You’re not the most unqualified or least knowledgeable person in the room. Everyone else thinks they are. And anyway it’s much more elegant to ask questions than to behave like you know all the answers. Because nobody does. Ever.”

Susan Sweet, 72, Rumford, former state administrator, non- profit lobbyist and advocate. “In the short space that we are in the world, we must create meaning in our lives by contributing to the happiness and well-being of other people and other sentient beings. To do good and useful work, caring and acting for the betterment of others is the true goal of life.”

Bob Billington, President of the Blackstone Valley Tourism Council who received his Doctorate in Education from Johnson & Wales University in 2005, says that “Star Power Sells” when seeking out a commencement speaker. “We have regular people walking amongst us who do very extraordinary things everyday but they may never get a chance to give a commencement speech at a college or university,” he notes.

If so, I say that it’s a shame.

Herb Weiss, LRI ’12, is a writer who covers aging, health care and medical issues. He can be reached at hweissri@aol.com.