THE TERMINOLOGY AND THE CONCEPT OF THE GIG ECONOMY

New business models have emerged in the late 20th century due to Internet technology (IT) development and digital transformation. One of them – known as the gig economy – represents a new business concept that stands for a market system in which individuals offer their services on a fixed-time basis to other businesses through a digital platform. The purpose of this paper is to explore the relatively new field of the gig economy and its context based on previous findings and literature. Accordingly, the concept of the gig economy is based on a triangular relationship between the individual (worker; provider), the digital intermediary of the process (online labour platform) and the end-user of the service (employer). Such a concept implies various benefits for all parties involved but also brings many challenges. The paper aims to provide a descriptive insight into the literature and findings and introduce terminology related to the gig economy concept. It also aims to discuss the nature of work within the gig economy, its current dimensions, its value creation for firms and entrepreneurship, and the issues that need to be addressed for the gig workforce and its likely future policy implications. The paper’s limitations are the lack of agreement on standard definitions and national and international frameworks of the gig economy workforce, even though studies suggest that gig workers are among the fastest-growing forces in contemporary work arrangements. Therefore, the paper encourages the development of policies and programs to identify the specifics, benefits, and challenges of the gig economy and its impact on society in order to facilitate and promote this new, growing entrepreneurial category.