Fans of the gig economy like to portray it as a flexible way of working – a way to get a better work-life balance while still earning a good income as a freelancer. But it's detractors see it as a way for companies to avoid or erode worker's rights; a way to avoid having to pay workers for holidays, pensions, sickness and maternity benefits or provide protection against unfair dismissal.

So what is it? A business model that enables companies to save money by capitalising on employment legislation or an opportunity to work where and when you like and cherry pick the work you do?

People have always been self-employed and IT contractors, for instance, have used the freelance mode of working for decades and usually for their benefit – they may not get paid sick leave or holidays or have an employer's pension but their income is significantly higher than their counterparts who are permanent employees; an income difference that more than allows them to purchase their own pension and cover their holidays or sick days. Neither may they have the job security of a permanent employee but being at risk from the hire 'em and fire 'em corporations has been the price they are willing to pay to earn the premium they earn when they are working.

Many commentators on the gig economy raise the subject of Uber and how it's drivers are all classed as self-employed and missing out on benefits – but the other side of the coin is that they don't have to work if they want to take a day off; they can go to their child's school play or sports match whenever they want to. Neither do they have to work as a driver all the time but could have another part-time job that better suits their personal or family circumstances; they could be a budding author or studying for better qualifications. This voluntary nature of working might be seen as exploitative by unions but it can be seen as liberating by the workers.

But the key factor is whether those workers feel they are being remunerated adequately for the work they do – if not then the lack of benefits does become an issue.

But let's not forget that there are increasing numbers of small companies nothing like the size of Uber that function very well using the gig model – and function in a way that was hardly possible just a decade ago.

What we actually see with the growing gig economy is a broad range of working environments between the student supplementing their income by blogging in their spare time for a small local company to, well, Uber drivers ferrying passengers around our cities or IT contractors working in investment banks. The Bureau of Labor Statistics describes a "gig" as a single project or task for which a worker is hired, often through a digital marketplace, to work on demand.

Increasing numbers of companies and individuals are choosing to work this way – the individual gets freedom and flexibility. And let's not forget that whilst the worker may not have any rights, neither has the company and a worker they have come to rely on could simply up sticks and decide to travel the world at a crucial moment in the company's growth so the advantages and disadvantages are apparent on both sides.

With no contractual obligations and a flexibility that previous generations could not have imagined, is the gig economy really such a bad way to work? Does it not, in fact, return some power to the hands of the worker? By working in the gig economy many people who may have been excluded from traditional roles may find there is indeed a place for them in the "workplace". Those who are unable to easily commute to where the jobs are, for instance, can work from their home office; a professional mother with young children could take on just the right amount of professional work that would suit family life without having to resort to a poorly paid part-time role that fitted into school hours.

So it could be argued that the detractors of the gig economy misunderstand the type of people involved in it. It isn't all low paid taxi drivers but, in fact, professionally skilled and qualified individuals in highly-skilled, high-demand industries who just choose, either temporarily or permanently to work in an alternative way.

“Much of what has been written about the gig economy has been from the perspective of its disadvantages,” says David Silverman Director of Affiniti Digital Media Ltd, the parent company of Solution Loans the online finance broker that has grown and flourished by using workers via the gig economy. "As a startup we could not have succeeded without access to various highly skilled workers to establish the company, it's website and online presence. As we continue to grow it makes sense for us to continue using the gig model. I believe the perception of what the gig economy is may have to change before it's critics truly understand its benefits. If we do not support the gig economy we could be stifling innovation within small startup companies"

Whatever your view of the gig economy – love it or hate it – what's certain is that all companies should be aware of it and whilst laws may be changed to protect workers' rights it seems certain that the freedom and choice so many workers are now enjoying year-round will not be relinquished easily for a few weeks paid holiday.

For Solution Loans’ Silverman, it is important that any debate carefully considers the benefits to the workers as well as the benefits to the many companies that could not thrive without this new way of working.

“There are, of course, understandable concerns in the gig economy, especially around the area of low paid workers, but it also brings freedom and choice to many others who prefer this way of working,” he says. “Many people are embracing this change in working practises and achieving a better work-life balance."