1. The Consulting Economist in 2005
Particular Issues affecting the Freelancer and Small Firm

2. Introduction
Many issues affect consultants and consultancies regardless of size
Effects on freelancers (individuals) and small firms likely to be more marked than for large firms

3. Freelancers: some of the challenges (1)
Relationship with the client (government, IFI) – often as sub-contractor, not direct
Finding and securing work – personal contacts are vital, database is not enough
Limited role (unpaid?) in working up proposals

4. Freelancers: some of the challenges (2)
Limited say in team makeup - risk as team leader if team members unsuitable
Seasonal factors or political disruptions to work flow (elections, wars, EC in July …)
Exclusivity and availability – risk of double-booking or missing opportunities

5. Freelancers: some of the challenges (3)
Limited “clout” of individual with client (e.g. if client refuses to accept report)
Balance between medium/long term assignments and short term (income flow versus getting “out of the loop” …)

6. Freelancers: some of the rewards (1)
Framework contracts – opportunities for varied short term assignments provided available at short notice and known to Framework contractors
Independence - ability to say “no”, no office politics, freedom to take on second job …

7. Freelancers: some of the rewards (2)
Fees and revenue – daily rates exceed salaries (even taking account of NI, pension, etc.)

8. Small Firms: challenges
Access to smaller contracts – many now under Framework contracts
Cost of preparing prequalifications and bids
Minimum capital required to be eligible to bid

9. Some common issues Downward pressure and competition on fee rates
Cash flow – especially for sub-contractors

10. Conclusions
Freelancers have a continuing role, but constant marketing and professional effort to stay in the field
Small firms – evolving role as specialist sub-contractors or niche experts