Exploring Gig Economy Participation as a Pathway to Formal Entrepreneurship and Business Sustainability

Abstract

The expansion of the gig economy has changed traditional employment structures by giving people chances to do flexible, self-employment and entrepreneurship jobs. There have not been many studies that have explored the ways through which the gig economy helps to transform gigs into successful entrepreneurial ventures. The current study will look at the effects of gig economy experience and skills on entrepreneurship readiness and sustainable venture creation. The research method used here was that of a quantitative cross-sectional research design. Survey data of 350 gig workers working via different digital platforms such as Upwork, Fiverr, Uber, Swiggy, Zomato, and Urban Company was collected. A structured questionnaire was formulated for the purpose of collecting data on the basis of the five-point Likert scale. The structural equation modeling technique was used through SmartPLS and AMOS. These results indicate that gig experience (β = 0.381, p < 0.001), skill development (β = 0.417, p < 0.001), and customer network strength (β = 0.298, p < 0.001) increase entrepreneurial readiness. Also, entrepreneurial readiness positively affects formal business formation (β = 0.532, p < 0.001), which significantly leads to business sustainability (β = 0.486, p < 0.001). Mediation analysis supports that entrepreneurial readiness is an essential mediator that helps in the effect of gig-related capabilities on formal venture creation. In addition, the results of the moderation analysis indicate that financing availability moderates the effect of entrepreneurial readiness on formal business formation (β = 0.174, p < 0.01). This paper finds that involvement in the gig economy can be used as an entrepreneur’s route through which the individual is able to gain skills and market competence necessary for setting up businesses. The results expand the field of entrepreneurship in terms of providing evidence of how experiences from the gig economy may lead to sustainable venture development.