Editor’s Observe: This story initially appeared on Commodity.com.
Self-employed entrepreneurs account for 10% of all employees, based on 2020 information from the U.S. Census Bureau. However whether or not born out of necessity or want, an growing variety of employees are taking the plunge and beginning their very own companies within the wake of the COVID-19 pandemic.
After an preliminary drop in new enterprise purposes in early 2020, month-to-month enterprise purposes soared to file ranges. The latest information exhibits that purposes stay considerably larger than they have been a couple of years in the past.
The current escalation in new enterprise formation is because of a number of elements. First, as many companies in the reduction of operations or shut their doorways fully, a wave of newly-unemployed employees opened their very own companies in response.
Moreover, a mix of enterprise closures, provide chain issues, and altering client preferences created area out there for brand spanking new sorts of companies to enter. Stop charges additionally reached file ranges in current months, as many employees have been pushed by the pandemic to reassess their careers and begin one thing of their very own.
In whole, new enterprise purposes elevated by almost 25% within the first 12 months of the pandemic. However almost a 3rd of all purposes have been concentrated in two sectors: retail commerce {and professional}, scientific, and technical companies.
To seek out the metropolitan areas with probably the most entrepreneurs, researchers at Commodity.com analyzed information from the U.S. Census Bureau. The researchers ranked metros based on the proportion of employees who’re enterprise house owners.
Researchers additionally calculated the entire variety of enterprise house owners, the entire variety of new enterprise purposes in 2020, the median annual revenue for full-time enterprise house owners, and the median annual revenue for all full-time employees.
Listed below are the metropolitan areas with probably the most entrepreneurs.
15. Little Rock-North Little Rock-Conway, AR
Share of employees who’re enterprise house owners: 11.3%
Complete variety of enterprise house owners: 36,315
Complete variety of new enterprise purposes in 2020: 11,132
Median annual revenue for full-time enterprise house owners: $45,000
Median annual revenue for all full-time employees: $48,000
14. Lancaster, PA
Share of employees who’re enterprise house owners: 11.5%
Complete variety of enterprise house owners: 31,500
Complete variety of new enterprise purposes in 2020: 3,919
Median annual revenue for full-time enterprise house owners: $60,000
Median annual revenue for all full-time employees: $54,000
13. Lafayette, LA
Share of employees who’re enterprise house owners: 11.7%
Complete variety of enterprise house owners: 27,264
Complete variety of new enterprise purposes in 2020: 7,620
Median annual revenue for full-time enterprise house owners: $50,000
Median annual revenue for all full-time employees: $48,000
12. Charleston-North Charleston, SC
Share of employees who’re enterprise house owners: 11.8%
Complete variety of enterprise house owners: 47,614
Complete variety of new enterprise purposes in 2020: 14,359
Median annual revenue for full-time enterprise house owners: $65,000
Median annual revenue for all full-time employees: $50,000
11. Austin-Spherical Rock, TX
Share of employees who’re enterprise house owners: 11.8%
Complete variety of enterprise house owners: 143,075
Complete variety of new enterprise purposes in 2020: 34,716
Median annual revenue for full-time enterprise house owners: $65,100
Median annual revenue for all full-time employees: $60,000
10. Oxnard-Thousand Oaks-Ventura, CA
Share of employees who’re enterprise house owners: 12.1%
Complete variety of enterprise house owners: 47,947
Complete variety of new enterprise purposes in 2020: 6,898
Median annual revenue for full-time enterprise house owners: $70,000
Median annual revenue for all full-time employees: $60,200
9. Bridgeport-Stamford-Norwalk, CT
Share of employees who’re enterprise house owners: 12.2%
Complete variety of enterprise house owners: 57,354
Complete variety of new enterprise purposes in 2020: 13,873
Median annual revenue for full-time enterprise house owners: $74,000
Median annual revenue for all full-time employees: $77,000
8. New Orleans-Metairie, LA
Share of employees who’re enterprise house owners: 12.3%
Complete variety of enterprise house owners: 68,738
Complete variety of new enterprise purposes in 2020: 29,830
Median annual revenue for full-time enterprise house owners: $50,000
Median annual revenue for all full-time employees: $50,000
7. Los Angeles-Lengthy Seaside-Anaheim, CA
Share of employees who’re enterprise house owners: 12.3%
Complete variety of enterprise house owners: 766,024
Complete variety of new enterprise purposes in 2020: 198,477
Median annual revenue for full-time enterprise house owners: $52,000
Median annual revenue for all full-time employees: $55,000
6. McAllen-Edinburg-Mission, TX
Share of employees who’re enterprise house owners: 12.8%
Complete variety of enterprise house owners: 41,838
Complete variety of new enterprise purposes in 2020: 6,188
Median annual revenue for full-time enterprise house owners: $30,000
Median annual revenue for all full-time employees: $36,600
5. Cape Coral-Fort Myers, FL
Share of employees who’re enterprise house owners: 12.8%
Complete variety of enterprise house owners: 44,029
Complete variety of new enterprise purposes in 2020: 13,000
Median annual revenue for full-time enterprise house owners: $55,000
Median annual revenue for all full-time employees: $45,000
4. Deltona-Daytona Seaside-Ormond Seaside, FL
Share of employees who’re enterprise house owners: 13.0%
Complete variety of enterprise house owners: 35,668
Complete variety of new enterprise purposes in 2020: 10,271
Median annual revenue for full-time enterprise house owners: $51,000
Median annual revenue for all full-time employees: $45,000
3. Asheville, NC
Share of employees who’re enterprise house owners: 13.4%
Complete variety of enterprise house owners: 31,283
Complete variety of new enterprise purposes in 2020: 4,810
Median annual revenue for full-time enterprise house owners: $42,250
Median annual revenue for all full-time employees: $42,250
2. Miami-Fort Lauderdale-West Palm Seaside, FL
Share of employees who’re enterprise house owners: 14.7%
Complete variety of enterprise house owners: 439,795
Complete variety of new enterprise purposes in 2020: 217,834
Median annual revenue for full-time enterprise house owners: $41,000
Median annual revenue for all full-time employees: $45,000
1. North Port-Sarasota-Bradenton, FL
Share of employees who’re enterprise house owners: 16.4%
Complete variety of enterprise house owners: 56,259
Complete variety of new enterprise purposes in 2020: 13,328
Median annual revenue for full-time enterprise house owners: $50,000
Median annual revenue for all full-time employees: $52,000
Methodology
To seek out the metropolitan areas with probably the most entrepreneurs, researchers at Commodity.com analyzed information from the U.S. Census Bureau’s 2020 American Neighborhood Survey Public Use Microdata Pattern and Enterprise Formation Statistics. The researchers ranked metros based on the proportion of employees who’re enterprise house owners. Within the occasion of a tie, the metro with the bigger whole variety of enterprise house owners was ranked larger.
Researchers additionally calculated the entire variety of new enterprise purposes in 2020, median annual revenue for full-time enterprise house owners, and median annual revenue for all full-time employees.
Enterprise house owners are outlined as self-employed employees who’ve their very own integrated or unincorporated companies. Solely the 100 most populous metro areas have been included within the evaluation.
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