Exploring Opportunities and Barriers to Entry in The Online Gig Economy for Ethiopians: In the Case of Upwork
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Date
2024-10
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Addis Ababa University
Abstract
The online gig economy has emerged as a significant source of employment opportunities globally. This study focuses on exploring the opportunities and barriers to entry in the online gig economy for Ethiopians, with a specific focus on the case of Upwork. Through a mixed-methods approach involving surveys, interviews, and data analysis, this research identifies the factors that facilitate or hinder Ethiopians' participation in the gig economy on platforms such as Upwork. This study examines the skills and qualifications demanded in the online gig economy and how well-aligned they are with the Ethiopian workforce. Additionally, this study investigates the barriers faced by Ethiopians, such as internet access, infrastructure limitations, and competition. The study seeks to provide valuable insights into the challenges faced by Ethiopians seeking to engage in online freelancing, as well as the potential benefits and opportunities that this mode of work offers. Based on gathered data the findings of the study suggest a complex interplay between opportunities, challenges, and support systems for freelancers on Upwork. There are an abundance of opportunities, but also significant barriers that need to be overcome. While challenges are faced, they might be perceived as less daunting than the initial hurdles. This study employed exploratory factor analysis (EFA) using Principal Component Analysis (PCA) to investigate the underlying structure of relationships between 15 variables in a dataset of 117 observations. Analysis of correlations revealed both positive and negative relationships between variables. Several variables exhibited strong positive correlations, suggesting they tend to change together. On the other hand, some variables showed strong negative correlations, indicating opposing trends.
Keywords: Gig Economy, Online gig economy, Ethiopia, Freelancers, Upwork