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If content creators are poised to be the backbone of our economy, shouldn’t we be equipping them with the financial tools they need to thrive?
Nicole Casperson
September 03, 2024
In partnership with
Hi, fintech fam! đź’ś
I can hardly believe it—Fall is here already! The crisp air and changing leaves make me feel nostalgic for our brat girl summer. But don’t worry. This new season brings plenty of excitement and opportunities for us to connect.
My event and speaking calendar is packed this month, and I can’t wait to hang out with you all, both virtually and in person!
We’re kicking things off tomorrow with a virtual event in collaboration with the New York Public Library. I’ll be presenting a first look at my upcoming book, Fintech Feminists, at 3 PM ET. If you’re eager to dive into this historic book before anyone else, this is your chance! It’s free and online—sign up here.
On the in-person front, I’m gearing up for the Fintech Is Femme Creator Summit on September 9th! I’m excited to connect, learn, grow, and share some hugs as we continue to own our power and craft our success stories together.
If you haven’t grabbed your ticket yet, you can get it here. Need a discount? Reply to this email with a quick intro, and I’ll send you a special code.
Now, let’s dive into today’s column!
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INNOVATION
Are Content Creators Poised to Be the Backbone of Our Economy?
Small businesses form the backbone of our economy, and content creators are swiftly rising to become their new vertebrae.
As the creator economy grows and evolves, it’s clear that these digital entrepreneurs are not just influencers—they’re small business owners, CEOs, and experts in their fields.
They create content for creativity and as a bridge to broader business endeavors.
So, If content creators are poised to be the backbone of our economy, shouldn’t we be equipping them with the financial tools they need to thrive?
The Rise of the Creator Economy
The creator economy is not just a buzzword—it’s a rapidly expanding industry.
According to a report by venture capital firm SignalFire, around 50 million people globally consider themselves part of the creator economy. These include artists, gaming streamers, video creators, podcasters, musicians, and social media influencers.
And that definition is rapidly expanding, with content creators identifying as CEOs, investors, and business operators.
This makes the creator economy the fastest-growing segment of small business today.
Estimates of the creator economy’s worth vary, with figures ranging from $104.2 billion as of mid-2022 to over $763.6 billion.
This range reflects both the complexity of the ecosystem and the growing impact creators have on the U.S. economy, surpassing even sectors like agriculture and transportation.
Technology, Economy, and Generational Shifts Fueling Growth
Several trends have fueled the creator economy’s rise.
Technologically, the internet has democratized creative industries, allowing creators to bypass traditional gatekeepers like music labels, book publishers, and production studios.
Platforms and tools for content creation, distribution, and monetization have enabled creators to connect directly with their audiences and set their own financial terms.
Economically, the fallout from crises like the Great Recession and the COVID-19 pandemic has driven many into the gig economy.
According to a survey by the Global Entrepreneurship Monitor (GEM) in 2021, the rate of women starting businesses saw a noticeable increase during the pandemic. In the U.S., the percentage of women who became new entrepreneurs jumped from 27% in 2019 to about 37% in 2020.
Today, women make up nearly half of all small business owners in the US.
The surge was attributed to factors such as job losses, the need for more flexible work arrangements, and the desire for greater control over one’s career.
Freelancing and independent contracting have redefined what a “job” looks like, with creators forming a significant part of this shift. Predictions suggest that freelancers could make up half the workforce by 2030, with creators at the forefront.
Generationally, Millennials, Gen Z, and even the upcoming Gen Alpha have embraced the creator economy as a viable career path.
These digital natives are comfortable with the tools and platforms that drive the creator economy and are more interested in connecting with individual personalities rather than corporate brands.
Women are rapidly becoming key players in the creator economy.
Platforms like YouTube, TikTok, and Instagram have seen significant growth in female content creators, with millions of women entering the space as the creator economy expands.
According to a 2021 report by SignalFire, this growth has been driven by the shift to remote work, the flexibility content creation offers, and the lucrative opportunities to monetize creative efforts.
In fact, women made up 47% of the overall creator economy, according to a 2022 report by Adobe. This rise highlights the importance of supporting female creators who are not just contributing content but building small businesses around their work.
To truly serve female entrepreneurs, creatives, and small business owners, the fintech industry must step up and provide the tools and resources that will help increase the wealth flowing into the hands of women.
By better supporting content creators, we can enable more women to succeed and thrive in this changing business landscape.
The Dual-Edged Sword of Being a Creator
Participating in the creator economy has substantial benefits. Creators enjoy autonomy, flexible working hours, and the potential to build multiple revenue streams.
However, it’s not all sunshine and roses. One of the most significant challenges creators face is getting paid.
Most transactions in the U.S. are processed through the Automated Clearing House (ACH) Network, which can take days to complete. For creators who often live paycheck to paycheck, this delay is more than just an inconvenience—it’s a significant financial hurdle.
Moreover, creators face unpredictable income, intellectual property theft, dependence on third-party platforms, and a constantly shifting regulatory environment. Yet despite these challenges, the creator economy continues to grow, with more people aspiring to join this digital revolution every day.
Kerry Reynolds and the Future of Small Business Finance
Kerry Reynolds, the Vice President of Marketing at Wave
One of the key figures driving innovation in this space is Kerry Reynolds, the Vice President of Marketing at Wave.
Kerry brings a wealth of experience to her role, from her early days as an entrepreneur to impactful positions like leading consumer marketing at PayPal.
Now, at Wave, she’s at the forefront of shaping the future of small business finance for the creator economy. Her work focuses on providing creators with the tools they need to manage their finances, enabling them to focus on what they do best—creating.
I’m excited to announce that I’ll interview Kerry during the upcoming Fintech Is Femme Creator Summit.
We’ll dive deep into how fintech can better serve the creator economy and what businesses can do to support these modern-day entrepreneurs.
Creators as Entrepreneurs: A Call to Action for Fintech
The top 1% of creators might grab all the headlines, but the reality is that most creators are more like your local mom-and-pop shop—hustling every day to make a living.
As the creator economy continues to expand, with millions of people using platforms like YouTube, TikTok, and Instagram to turn their passions into paychecks, the need for financial tools tailored to these digital entrepreneurs is skyrocketing.
Fintech companies have a golden opportunity here.
By offering solutions like flexible lending options, fast payment processing, and business analytics explicitly designed for creators, fintech can help these entrepreneurs stabilize their income, manage their finances, and grow their businesses.
This isn’t just about helping individual creators succeed—it's about driving broader economic (and industry) growth.
These small businesses are the new economic engines, fueling innovation, creating jobs, and boosting spending.
In other words, by supporting content creators, fintech is positioning itself to power the next wave of economic development.
The Future of the Creator Economy
Despite the challenges, the creator economy shows no signs of slowing down.
As the workforce continues to shift towards remote work and entrepreneurship, the appeal of the creator economy will only increase.
For businesses and fintech companies, this presents an enormous opportunity to innovate and cater to a rapidly growing and influential segment of the economy.
Creators are more than just content producers—they are the new small business owners and, based on the data and trends, the future backbone of our economy.
As we look to the future, it’s imperative that we provide them with the tools, resources, and support they need to succeed.
In doing so, we’ll empower a new generation of entrepreneurs and ensure that our economy continues to grow and thrive in the digital age.
Fintech companies catering to this emerging wave of SMBs are poised to become industry leaders as this growth accelerates.
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I WANT IT, I GOT IT
📚 Today’s Read: La Creme de la STEM ™: Get exclusive insights about entrepreneurship, community building, and inspiring women stories from Marion Siboni, ex-Techstars, in her must-read newsletter.
👀 Today’s Watch: I finally finished rewatching Sex and the City and am sad it’s over—but just in time for me to have no time to binge-watch anything. Here’s a clip of the final ending, which makes me cry every time!
🍣 Today’s Eats: Anyone else see the viral cucumber salad recipes on TikTok? I haven’t tried one yet, but I really want to. (See here).
FINTUNES
Carrying this energy forward into the rest of 2024. Tinashe absolutely nailed it with her new album! It's the perfect soundtrack for a workout. This morning, I felt the vibe while rebounding (that mini trampoline workout).
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That’s all for now! See you Thursday!
Love,
Nicole đź’ś