Small businesses are a mighty force in the American economy. And while 99.9% of America’s 34.75 million firms have fewer than 500 employees, an astonishing 81.9% — or 28,477,518 — have no employees at all. This figure represents the solopreneur or lone businessperson. These nonemployer firms are growing in number as technical and societal advances allow entrepreneurial spirits to seek a more amenable and rewarding way to earn a living.
The solopreneur path is not without its challenges. “Nonemployer firms are less likely to be profitable than their employer firm counterparts,” according to Fed Small Business, “and they face more substantial challenges accessing credit.”
But for some, the solopreneur path offers a more self-determinative career than joining a bigger business. Some 43.0% of nonemployer businesses are women-owned, and 32.6% are minority-owned — a significantly higher ownership rate than among businesses with employees.
Running a business alone can also be lucrative. Black or African-American-owned firms made $85.8 billion in 2020, the most recent year with available statistics, while American Indian or Alaska Native-owned firms made $10.7 billion. To find out where solopreneurs are making the most money, Switch On Business analyzed and mapped census data from around the U.S.
What We Did
We analyzed the latest figures from the U.S. Census NonEmployer dataset to calculate the average revenue per nonemployer firm in each state, metropolitan area and county, comparing the “number of nonemployer firms” and the “revenue of nonemployer firms” for each location.
Key Findings
- Solopreneurs in Delaware are making more money than in any other state, with an average of 72K revenue per nonemployer firm.
- The metropolitan area where solopreneurs are making the most is Bridgeport-Stamford-Norwalk, CT, with an average revenue of $79,851.
- Sheridan County, WY, is the county where solopreneurs are making the most money ($94,750 on average).
Delaware is the State Where Solopreneurs Make the Most Money
There are 82,000 nonemployer businesses in Delaware, bringing in a combined revenue of $5.87 billion — an average of $72K each. This makes Delaware the most lucrative state to be a solopreneur. Delaware reigns as the number one American state in the Shopify Entrepreneurship Index, which balances the jobs, exports, GDP impact and business activity of Shopify businesses worldwide. The company’s president, Harley Finkelstein, says Delaware is “widely considered to be one of the most business-friendly states in the U.S., due to factors like favorable tax policies toward entrepreneurs, with no sales tax and lower state taxes overall.”
New York is the sixth most lucrative state to run a nonemployer business. Some 1.78 million solopreneurs enjoy a combined revenue of over $106 billion, or $60K on average. With New York City at its heart, entrepreneurs see the state as a land of opportunity, combining unrivaled educational opportunities at the vanguard of America’s economy with a dynamic business landscape.
“New York is home to a high-quality, affordable public university network that trains so many students with entrepreneurial potential,” says Connor O’Brien, research and policy analyst at the Economic Innovation Group. “Providing more avenues for foreign-born startup founders to stay in-state after graduation and grow their businesses in New York is a win-win.”
Californian Solopreneurs Make the Most Revenue in Any Large Metros
Next, we analyzed the figures for metropolitan areas with populations of more than one million. There are four Californian metros among the top ten. These are led by San Jose-Sunnyvale-Santa Clara, where 141,000 solopreneurs bring in $9,509,258 annually — an average of $67,442 each.
The cost of maintaining premises and high utility bills in San Jose makes things tough on small businesses — and favors more nimble businesses that have a smaller real estate and energy footprint. “While San Jose remains a world-class destination for a dynamic customer base and highly skilled employees, we continue to struggle with the high costs of goods and services, slower permitting times and the high cost of housing, which can drive up wages,” says San Jose Chamber of Commerce CEO Derrick Seaver.
Beyond California and New York, the most lucrative large metro for solopreneurs is Nashville-Davidson-Murfreesboro-Franklin in Tennessee, where 216,000 nonemployer firms take an average of $62,068. In a separate study, the Chamber of Commerce found that Nashville solopreneurs rank 12th for income difference between self-employed and all workers.
Greater Bridgeport is the Most Lucrative Mid-Sized Metro for Nonemployer Firms
Connecticut’s Stamford-Bridgeport-Norwalk metro, also known as Greater Bridgeport, is home to 101,000 nonemployer firms, taking in an average of $79,851 annually. Local students can benefit from the Entrepreneur Center of the University of Bridgeport, which offers mentorship and legal and financial help to new entrepreneurs. “It’s a great experience,” says local businessman and mentor Mike Roer. “It’s actually about building students as entrepreneurs rather than their ventures.”
There are 76,500 nonemployer firms in the Charleston-North Charleston, SC metro, making an average of $55,807. Professional organizer Mary Gallivan combined her startup experience with a fresh start as a newbie in Charleston to launch her solo business.
“My goals were to meet new people (neighbors, friends, and more) and help them achieve their organizational dreams,” says Gallivan. “I’m thrilled to have accomplished just that, fostering connections and transforming spaces across Charleston. My experience working with multiple startup organizations has been invaluable in launching my own business.”
Nevada Capital is Top-Earning Small Metro for Solopreneurs
There are just 4,800 nonemployer businesses in Carson City, Nevada, but they make more money on average than in any other metropolitan area of fewer than 500,000 people. In fact, with average takings of $77,486, Carson City is second only to Greater Bridgeport ($79,851) among all metro areas, regardless of size.
The Nevadan capital received a boost for small businesses in 2022 when two local businesswomen established an arcade-like space for 30 vendors on Corbett Street and marketed it as “mid-town.” The idea was that this was a crucial district for small businesses that were neglected since they were on the fringe of the buzzing downtown area.
There are just over twice as many solopreneurs in the Cheyenne, Wyoming, metro compared to Carson City, and they pull in an average of $76,959. “We have one of the most business friendly environments in the country when it comes to no corporate tax, very low other taxes, and no personal income tax,” says Josh Dorrell, CEO of the Wyoming Business Council. “Also, we’re business friendly from an access to leadership. If you look at the legislature, the legislative process, and how citizens in Wyoming can play a part in it and really kind of make it pro-business.”
Sheridan is the Top County for Solopreneurs
Finally, we ranked the ten U.S. counties where solopreneurs make the most money and mapped each state’s top county below. Two of the top ten counties are in New York, two are in California, and two are in Nevada. But the most lucrative county for nonemployer firms is Sheridan County in Wyoming, where the average revenue is $94,750.
In a state where new business applications rose 29.5% in December 2023 compared to December 2022, Sheridan was the county with the most applicants: 22,389 in 2023 alone. The recent increase in small business activity has boosted tax receipts by 25%. “Assuming that Wyoming continues to have a favorable business climate, I don’t see that growth going away,” said Colin Crossman, business division director for the Secretary of State’s Office.
There are six states where the most lucrative county for solopreneurs boasts an average revenue of over $80K. Summit County in Utah brings in $87,603 per nonemployer company. The county historically has some of the highest incomes in the country, although some parts have suffered from gentrification as a result.
“The people who tend to move here can afford to,” said former Park City Mayor Andy Beerman. “We’re ending up with the super-rich, and then the worker class. What we’re losing is that whole broad middle class — teachers and cops and small business owners. … We’ve always had an authentic community up here, where you can work where you live. We’re an authentic place. We’re not Disney World.”
Going Solo, Staying Local
Small businesses can come to define an area, and when those businesses are owned and run by a sole entrepreneur, character and imagination come to the forefront. Running a nonemployer business allows for versatility and quick adaptation in the face of hard times and the potential to be fulfilled and well-paid when the going’s good — as long as the business is a good fit for the environment in which it finds itself.
Methodology
For this study, we analyzed the latest figures from the U.S. Census nonemployer dataset, focusing on the “number of nonemployer firms” and the “revenue of nonemployer firms” by location to calculate the average revenue per nonemployer firm in each state, metro area and county. We completed this data analysis in October 2024.
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