Want to understand how solopreneurs operate?
Specifically, I studied the solopreneurs in the United States, the average annual revenue they generate, the demographics that are characteristic of this business model and what motivates individuals to pursue it.
So without further ado, let’s see the results.
Our summary findings are as follows:
- In terms of gender breakdown, 54.40% of solopreneur are female and 45.6% are male.
- 20% of solopreneurs earn $100k to $300k without needing to hire staff.
- In terms of education level, 53.2% of solopreneurs have a Bachelor's Degree or higher.
- 54% of solopreneurs are above the age of 35.
- 51.6% of solopreneurs operate from home, while 21.6% run their businesses in an office.
- Of all the solopreneurs surveyed in 2023, 41.6% have been running their business for less than one year.
- Only 10% of solopreneurs come from technology related industries.
- 13.13% of solopreneurs reported feeling lonely and isolated in their work.
- 14.8% of solopreneurs are between the ages of 18 and 24.
- The primary motivators for solopreneurs include the desire to have more control over their lives (34.35%), to have a greater financial reward (22.58%) and to do something they are passionate about (22.01%).
- 29.54% of solopreneurs rely on selling products for a steady stream of income.
- Only 3.6% of solopreneurs have an average revenue of more than $83,000 per month.
The Majority of Solopreneur are Female
Solopreneurs have become an essential part of the economy, accounting for a large portion of small business ownership.
Looking at the gender breakdown of solopreneurs is important in order to understand the roles and industry trends.
Understanding these elements will allow us to provide better support and resources for these entrepreneurs, and to help us to understand the dynamics that affect their ventures.
The majority of solopreneurs being female matters because it signifies progress towards truly equal opportunities and an accepting environment for women in the business sector.
Having more female leaders in the business sector helps bring about change for future generations, creating a supportive system and inspiring young girls to choose entrepreneurship as a viable life path.
Women are forging ahead as solopreneurs, surpassing men to form the majority of independent business owners.
53.2% of Solopreneurs have a Bachelor's Degree or Higher
Examining the educational level of these independent professionals can be important in order to gain insight into how their education may influence their performance and career path.
In particular, understanding what qualifications they possess can provide valuable information about how well-prepared they are for the business world.
And help determine if additional training or support might be necessary for success.
Solopreneurs have traditionally been hardworking individuals who, because of previous economic circumstances and limited resources, pursued their dreams with lower education.
Now with higher educational attainment being the norm, these same talented entrepreneurs are now setting up businesses that are better prepared to withstand economic changes and shocks.
This could be due to a greater depth of knowledge they possess while also taking advantage of increased educational opportunities available to them.
As this trend continues we can expect to see even greater successes in solopreneur careers.
The solopreneur of today is highly educated, tech savvy, and largely between the ages of 25 to 34.
54% of Solopreneurs are Aged 35 or Older
Understanding the age breakdown of solopreneurs is helpful as it reveals trends and achievements within different populations.
Age plays an important role in how we approach our businesses, careers, and lifestyles.
By looking at the ages of individuals who embrace the lifestyle of a solopreneur, we can see what each age group values and the advantages they have when going solo.
This finding is important because it demonstrates that solopreneurship is not just for young and energetic individuals who still have the energy to challenge the traditional corporate arenas.
Instead, the fact that half of solopreneurs are above 35 indicates that these experienced professionals have found independence with their own businesses, regardless of what age they are.
Solopreneurship can be an option for anyone who has the necessary skillset and an entrepreneurial vision.
Solopreneurship continues to grow as a popular career choice amongst individuals in the 35+ age range.
These solopreneurs are well-equipped for their role, having already gained considerable working experience and passed through different life stages.
About Half of Solopreneurs Work from Home
The world of work has changed for the modern-day solopreneur. Gone are the days of having to stay in a cubicle in an office building.
Today's entrepreneur can do business from anywhere in the world. With that said, looking at what type of working conditions, location, and amenities are best suited for solopreneur success is key to achieving optimal results.
Feeling comfortable and supported in the right environment gives them the ability to be more productive and successful overall, so finding more information around this subject is important too.
This finding demonstrates the changing face of modern entrepreneurship.
Majority of solopreneurs choose to work from home, benefitting from a flexible and cost-cutting setup.
However, some recognize the advantages of having an office, such a professional atmosphere, access to resources and networking opportunities.
A hybrid setup allows for a combination of efficiency and comfort.
It appears co-sharing workspace has higher in demand compared to small standalone office spaces. Public places are for their creative endeavors.
Solopreneurs generally opt for a home-based setup to do their work, though some prefer to enjoy working in an office or utilizing the hybrid approach.
A small minority finds being in public more inspiring for their ventures.
41.6% of Solopreneurs Have Been Running Their Business for Less than One Year
Solopreneurship is on the rise.
They have access to affordable technology tools, extensive free knowledge, and helpful community that enables them to launch businesses independently.
It's important to measure how long it takes solopreneurs to get their ventures off the ground and running. This will provide valuable insights into how individuals with limited resources can successfully launch successful companies.
This survey provides a unique insight into the success of solopreneurs over time.
It is encouraging to see that over half of those surveyed have been able to sustain their businesses for more than one year, with an increasing proportion doing so for more than 10 years.
This demonstrates that running a business as a sole-trader can be financially viable and rewarding if approached in the right way.
Furthermore, this provides optimism and hope to younger entrepreneurs who are just starting out with their businesses, as it provides evidence that long-term success is achievable.
Just over 4 out of 10 solopreneurs are in the first year of running their business.
But this number drops off over time. Surprisingly though, a greater percentage continue to stay in operation for 10 years or more.
Only 10% of Solopreneurs Come from Technology Related Industries
Coming from different backgrounds and industries, these daring individuals launch independent businesses without relying on external funding or partners.
Their successes can be attributed to tremendous self-discipline and strategizing – skills any entrepreneur needs to amass wealth.
Hence, it’s appropriate that we take a look at the industry backgrounds of solopreneurs, which provide valuable insights into the mindsets and strategies they use to lead successful enterprises.
While tech-focused industries have experienced tremendous growth in recent years, this finding clearly demonstrates that there is a wealth of opportunity outside of technology.
This provides aspiring entrepreneurs with hope that they can achieve success based on their own skillset, interests, and resources - regardless of sector.
Despite the popularity of high-tech startups, recent research revealed that only 10% of American solopreneurs work in tech-focused industries.
The majority come from a variety of sectors such as healthcare, retail and construction.
1 out of 5 Solopreneurs are Earning Between $100k to $300k Annually without Additional Help from Freelancers or Part-timers
It is interesting to examine whether there is a relationship between the number of hires a solopreneur makes and the revenue generated by their business.
By exploring this topic, we hope to gain a better understanding of how successful solopreneurs approach their personnel management needs and how hiring decisions may influence their income.
This finding is a testament to the potential for solopreneurship; one person alone can generate an impressive income range of $100k to $300k without needing additional assistance.
This speaks volumes about what anyone who heads out on their own can accomplish in terms of business success and financial stability.
On the other hand, it demonstrates that hiring independent workers can significantly increase solopreneurs' business success.
Solopreneurs are able to earn between $100k - $300k without any outside help.
But those who earn more than $1 mil in annual revenue typically employ at least one freelancer or part-timer.
13.13% of Solopreneurs Felt Lonely and Isolated in Their Work
Every solopreneur faces a unique set of challenges in their business.
As a solo business owner, he or she is accountable for all aspects of the business, from problem-solving to marketing and product development.
Time and resources are also limited – it's just you, after all – so making the most of your efforts is essential for success.
Identifying the biggest challenge facing solopreneurs is the first step towards developing an effective strategy to overcome it and grow your business.
Being a solopreneur can be incredibly challenging. These findings resonate with many aspiring entrepreneurs who are learning to navigate the unique and often isolating landscape of self-employment.
It's an increasing reality that having financial stability and emotional support are essential parts in achieving success as a solo business owner.
As a solopreneur, the struggle is real.
Stress and overwhelm take up nearly a quarter of the challenges while trying to run a business on limited funds with an intimidating learning curve can lead to feeling lonely or isolated at times.
Young adults are Taking the Entrepreneurial Leap, with 14.8% of Solopreneurs aged 18-24
Studying the age breakdown of solopreneurs gives us valuable insight into the working habits of modern entrepreneurs.
Many businesses are now started and run solo, so understanding how different age groups approach this market can inform our decisions about where to invest resources and develop strategies.
Examining the age breakdown is one way to better understand the changing landscape of business ownership in today's world.
This important finding has significant implications for the solopreneur trend.
It reveals that the majority of solopreneurs – those who own their business and are self-employed – are between 18 and 44 years old.
This indicates that the solopreneur trend is growing:
young, enterprising individuals are increasingly choosing to become their own boss and fuel the gig economy.
Solopreneurship is a popular career choice among young adults, with more than three-quarters of those below age 44 embracing the entrepreneurial lifestyle.
The trend declines as age increases.
Solopreneurs are People who Work for Themselves, Driven Primarily by a Desire for More Control and Financial Reward
While having to give up the financial and job security offered by working a full-time job is a daunting challenge, solopreneurs often find the rewards outweigh the risks.
That is why we have taken the time to explore what drives so many people to become self-employed as well as what they like most about being their own boss.
These results indicate that many solopreneurs embrace entrepreneurship with clear goals in mind.
We can see that people are far more likely driven by a need for personal freedom than solely seeking profits.
Such insight is valuable, as to know what drives solopreneurs can pave the way for more informed advice and support for this community of self-starters.
Solopreneurs find themselves driven by three major motivators- more control, financial stability and a passion project.
People are also motivated to challenge traditional conventions while giving back to society.
A Majority of Solopreneurs Rely on Selling Products for a Steady Stream of Income
Solopreneur income is an important topic for many business owners, as it can affect their financial stability and future prospects.
As a solopreneur, instead of relying on one main source of income, you're typically responsible for finding multiple streams to stay afloat.
We’re researching solopreneur income to help give guidance in this important area, so that small business owners can make smart decisions about where to place their efforts and maximize their returns.
This finding is of major importance to understanding how solopreneurs generate long-term revenue.
While consulting services and ads/monetized content can provide steady income, selling products clearly remains the most fruitful activity for solopreneurs.
It gives solopreneurs a much-needed understanding of how their peers are generating revenue, providing them with valuable guidance as they plan their own income strategy.
Solopreneurs have a variety of ways to bring in steady streams of income.
Selling products is the key to keeping a steady income; consulting/services and other sources of revenue such as ads, affiliate marketing or online courses also play an important role.
Only a Small Percentage of Solopreneurs Earn an Average of More than $1 Million per Year
Establishing a successful venture also requires taking a good look at what annual revenue you can expect as a solopreneur.
It is important to be realistic when determining your potential income and to understand that success doesn't happen overnight.
Analyzing the realities of an average solopreneur's annual revenue is the first step for anyone seriously considering the path of entrepreneurship.
Despite the fact that only a small percentage of solo entrepreneurs in the United States have managed to generate significant revenue, this statistic should not be discouraging for those who are looking to become successful business owners.
Taking on the challenge and starting a business of your own is no easy feat.
It requires a great deal of dedication, hard work, and determination if one hopes to be successful and reach six-figures or even more.
With the right attitude and commitment, solopreneurs can still achieve their goals.
The average US solopreneur can expect to earn less than $100k a year, with only 3.6% of them making more than seven figures annually.
That’s it for the list of solopreneur statistics.
If you’re interested in learning more about how we collected and analyzed the data for this study, here is a PDF of our methods.
And now I’d like to hear from you:
What’s your #1 takeaway from this research? Or maybe you have a question. Either way, go ahead and leave a comment below.