The solopreneur is redefining success.
According to the U.S. Census Bureau, a record-breaking 5.5M new businesses were started in 2023. That’s the highest number on record, surpassing the previous record of 5.4M in 2021. Even more interesting is that data from the Intuit QuickBooks Small Business Index Annual Report reveals that a growing share of American businesses are run by a solopreneur—increasing from 76% in 1997 to 84% in 2020. And a recent survey suggests this number could be even higher in 2024.
A solopreneur is an entrepreneur who starts a business independently. They perform all duties related to the company without the support of a cofounder or W-2 employees. Like anything, there are pros and cons to being a solopreneur. The potential downsides include limited resources, isolation and a potentially heavy workload. Conversely, solopreneurship offers flexibility, autonomy and the ability to make decisions efficiently.
Being your own boss isn’t for everyone. But one thing is certain—running a business single-handedly is a growing trend. Let’s explore the many reasons why opportunities for solopreneurs are on the rise.
Priorities have changed
Following the pandemic, people’s values and priorities changed considerably. Millennials, in particular, value flexibility, work-life balance and more control over their careers. For many, profit isn’t even the primary consideration. These individuals want to find meaning in their work and make the world a better place. With social entrepreneurship on the rise, it’s opened the door for solopreneurs to be catalysts for change.
Disillusionment with corporate life
Gallup’s latest State of the Global Workplace report reveals that only 33% of employees are engaged at work. That leaves 67% who are either not engaged or actively disengaged. According to the report, employees generally feel more detached and are less likely to identify with their company’s mission and purpose. Given the decline in overall job security, these results aren’t surprising. To date, over 100,000 employees have been laid off from technology companies alone. As a result, employees don’t feel that traditional nine-to-five jobs are a safe bet anymore.
Accessible AI Tools
AI is changing the game for solopreneurs. According to an IBM report, 35% of companies already use AI, while 42% said they were exploring it. With the emergence of GPT-4 and other advanced AI-powered management tools, solopreneurs can effectively boost productivity. Some examples include automating tasks, analyzing data and creating high-quality content for websites and social media platforms. AI can even transform a business owner’s learning experience. Through AI-powered learning platforms, solopreneurs can benefit from a personalized experience and expand their skills like never before.
Increased rewards
One of the primary advantages of becoming a solopreneur is unlimited earning potential. You no longer have to wait for your annual review to beg your manager for a tiny pay raise. As your own boss, your future is in your hands. You can also deduct many of your business expenses, like computer equipment and other tools that help you run your business. And let’s not forget the emotional rewards. When you run your own business, there’s a sense of accomplishment that can’t be matched when working for a corporate machine.
Non-linear careers are more common
Lifetime employment at a single job is a thing of the past. One reason is that traditional career paths are extremely limiting. Not everyone can or wants to get to the top of the corporate ladder. Also, people are living and working longer. As a result, non-linear career paths that require lifelong learning and skill enhancement prevent individuals from feeling stuck. Instead of resigning themselves to a stagnant career, more people are pursuing entrepreneurship.
The rise of the solopreneur isn’t just a trend. It’s a movement that is being fueled by a tech revolution. Solopreneurs may not have the backing of high-profile venture capital firms, but when they succeed, the rewards are worth it.
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