The numbers are in on the “nonemployer business” (i.e. solo entrepreneur) – and they’re not pretty. An article released by The Business Journals noted that as of 2010 (the latest year for figures) there were 22 million U.S. businesses classified as “nonemployer businesses” with combined receipts of $950 Billion. Not a bad figure when you’re looking at the entire pie. When you divide the average revenue among the 22 million businesses, however, the typical “nonemployer business” made $43,000 in 2010! Granted, when you’re grading on the curve, you get the good, the bad, and the not-so-pretty “nonemployer business” revenue. None the less – we have to do better!
Solo and micro entrepreneurs (those who employ less than 10 people) add tremendous value to the economy. They’re an important source of competition in our global economy. They create jobs, enhance income, and add tremendous convenience to the business environment. In fact, here are some additional startling statistics:
- Over half of all the solo and micro enterprises are owned by women.
- Solo and micro businesses employ 52% of the private workers with the largest proportion being younger, older, women, or part-time workers.
- Solo and micro entrepreneurs provide 80% of the net new jobs. Sixty-seven percent of all workers received their initial on the job training from small business owners.
- Solo/micro businesses are home-based 53% of the time and franchises three percent of the time