Starting your own business has long been part of the tapestry of American dreams. But becoming an ownership more than ever does involve managing a large salary or activity-filled warehouse. In fact, you don’t need anyone other than yourself.
Recently published data from the US Census Bureau shows that 29.8 million solopreneurs in the US (companies without paid employees) have donated $1.7 trillion to the US economy. California led the way in 2022 with 3,502,950 solo companies, while Florida was the top solo startup per capita with around 13.3 non-employer facilities per 100 people, according to the US Census Bureau. The data was released in May, but is only covered until 2022.
More recent data sources also point to a “soloplanarship” business model that grows at a passionate pace. According to the Small Business Administration, entrepreneurs submit an average of over 440,000 applications each month.
Side hustles have been a staple in the American economy for many years, but it may seem counterintuitive that the ranks of small business owners are increasing amid tariffs and high interest rates. But one company is growing faster than ever, and experts agree that artificial intelligence is probably a factor.
“I think the barriers to entry to being a small business owner are probably few before,” said Mark Valentino, head of business banking at Los Angeles-based Citizens Bank. He estimates that interested individuals can start side hustles in 10 minutes to make money. AI offers ready-made virtual assistants and ChatGPT to assemble your business plan within minutes.
“And that business plan is solid enough that perhaps the first draft goes to a bank, a banker or an SBA lender, and “Hey, I’m getting a business plan, I have a bit of money and want to start this venture? We’re definitely seeing that trend,” Valentino said.
Millions of Tiktoc businesses run by women under the age of 30, mostly run by women under the age of 30.
Social media is also bolstering these numbers as solopreneurs are instantly connected online with interested consumers.
Esme Lean, head of Tiktok’s small business, points to a creator who recently moved 750 monk fruit shamoys (probably not the first or second item on most people’s shopping lists) online for the first week. She developed traditional Mexican toppings with monk fruits instead of sugar to meet some dietary restrictions.
“You don’t even have to have business ideas. It could just be something interesting or something you’re supposed to create a business,” Lean said.
Tiktok has an estimated 7.5 million companies, and after being banned by the Congressional Act, which was later upheld by the Supreme Court, social media platforms now seem to be on the verge of being saved forever by a deal between the Trump administration and China.
Many tiktok companies are soloists in stores selling obscure items, Lean said. The most important growth is among female entrepreneurs under the age of 30, leveraging what she described as a craving for relatively inexpensive credibility to build a business. In the previous generation, reaching profitable audiences required an off-budget ad campaign for most people.
“These stories reflect a much bigger wave of entrepreneurs who are growing by relying on creativity and community rather than spending much on traditional marketing,” Lean said.
Creator economy is a key driver of the solopreneurial boom, according to Sauraf Patuck, clinical associate professor of Raymond A. Mason School of Business at William & Mary. “It’s become so easy to build a personal brand and get paid directly from passionate fans through platforms like YouTube, Tiktok and Patreon,” says Pathak. However, he added that this is only part of a larger trend as consumers find themselves increasingly detached from the vast businesses. “They prefer real, niche or personal brands over big companies because of the personal touch and practical connections with founders that first-person companies can offer,” he said.
Leave a traditional corporate career
Whether it’s AI or social media, Najiba Benabess, dean of business at Neumann University, says the rise of solopreneurs reflects a major change in the use of technology and how economic workers view professional opportunities.
“Technology has lowered the barrier to entry. One person with a laptop can now run a global business,” Benabess said at the same time that people prioritize flexibility, autonomy and purpose over traditional career paths.
“Solopreneurship also addresses rapid changes in the labour market. In the labour market, skills and creativity are more valuable than organizational structure,” Benabes said.
Angela Berardino believes that AI can strike herself as the solo founder of boutique marketing company Brouhaha Collective. “It’s all AI these days, but at the startup level: AI has given me an army of administrators and interns who can help me take notes about calls, do the first round of research and analyze large datasets,” she said.
Three years ago, Berardino suspects she could have started her own business, but now she’s grown enough to lead the team. “AI is the reason I was able to lead a team that was out of the gate,” she said.
Flexibility and family also drive the trends of Soloprene like Berardino. “I’m a solo parent for young children, and in reality, no matter how many companies talk about prioritizing supportive families, they rarely implement actual programs,” she said.
“If you’re ambitious, the lack of support in a traditional business model is a huge incentive to start your own,” Berardino said.
As she grows her business, most of the members of her team are moms who have corporate careers and now want to work 25-30 hours a week, and are models who are flexible and say she is thriving at the startup. “I can’t doubt there are other solo founders who feel like I am. The corporate world had the cap as long as I was trying to balance my two worlds under their rules, and if I feel that limitation, it makes jumping to your own more manageable,” Berardino said.
The entrepreneurial economy is reduced across all ages and demographics.
“I’m a staff member for my small business,” said Susan Bernstein, 77, a resident of Pennsylvania. “Each rework is kind of one thing. I’ll never be involved in HSN or QVC, but individuals and repeat customers make retirement fun.”
