Umbrella Companies offer Employment Services for individuals who would like to invoice a customer but who currently do not have their own company. The service has been in commercial practice for more than twenty years in UK, France, Sweden and Holland but is still relatively unknown. This report aims to describe and quantify these companies in terms of growth and their impact on job-creation, primarily for unemployed people. A research stand point is taken from the Corporate Growth literature to investigate the different growth related behaviors practiced by different companies. The aim with this perspective is to find meaningful behaviors that can be copied by other companies. Hopefully the industry can grow and thereby create more jobs and simpler ways to run micro companies. The result from the study lists the current 294 Umbrella Companies for the first time (appendix 10). UK has more, older and larger Umbrella Companies followed by France and then Sweden. The persons who work through Umbrella companies can be divided into two groups: Agency-workers (who have been hired by a Contracting agency and are collectively employed through an Umbrella Company) and Consultants (who individually invoice their own client through the Umbrella Company) see section 1.1 for terminology. The dissertation has tested a framework for Exponential Growth developed by David Thomson in the USA. The framework lists 7 Essentials for Exponential growth. It is based on the behaviors of the 400 fastest growing companies in USA, as they exhibit high scores on five out of seven of these Essentials. Questions regarding ambition and outcome of growth and scoring on the 7 Essentials have been analyzed. Significant correlations have been found between the intention to grow and the ability to grow measured with these 7 Essentials. Significant lower scores on growth behavior have been found for the Umbrella groups and the Reference group compared with the US companies at the 95% alpha-level. Both groups are also growing slower than the US group.
ArbetstitelUmbrella Companies - a study growth and job-creation
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Åldersgrupp
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Publiceringsdatum2011-10-10 00:00:00
FörfattareFredrik Arvas
Kort BeskrivningFredrik Arvas has worked with Umbrella Employment commercially since 1991. He pioneered with these services in Sweden in his company Vascaia.se, a market leader for fifteen years. When he sold the business to a member of the staff 1999, hundreds of people had been helped by Umbrella Employment. Either as voluntary Entreperenurs or involuntary Umbrella Employed staff. The common theme the use of Umbrella Employment as a way forward in the labour market. This dissertation report is the result of many interviews with stakeholders in the industry. Together with data mining and two surveys an image is evolving. It is still a bit fuzzy since the response rates have been low, but the results form a foundation for further research and communication. 30 percent of all Employees in Umbrella Entrepreneurial Companies are estimated to be “New jobs”, which would not be done otherwise. Based on the Swedish estimates it means about 3 000 new jobs annually. For further information about Egenanställning in this report and others see: www.fredrik.arvas.se
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