While more Americans are turning to entrepreneurship due to economic restructuring, most of them are going the solopreneur route and not building companies with employees.
According to the "Kauffman Index of Entrepreneurial Activity," 0.34 percent of American adults created a business per month in 2010, or 565,000 new businesses, a rate that remained consistent with 2009 and represents the highest level of entrepreneurship over the past decade and a half. In contrast, however, the quarterly rate for employer firms dropped from 0.13 percent in 2007 to 0.10 percent in 2010.
The Foundation puts a negative spin on this trend: "Since it began, the recession has triggered annual declines in the rate of employer enterprise births," said Carl Schramm, president and CEO of the Kauffman Foundation. "Far too many founders are choosing jobless entrepreneurship, preferring to remain self-employed or to avoid assuming the economic responsibility of hiring employees. This trend, if it continues, could have both short- and long-term impacts on economic growth and job creation."
But I wonder if it's so bad. In my own small business, I have created a network of entrepreneurs who partner with each other to our mutual benefit. We create less employment for others in the traditional sense, but more economic opportunity for ourselves by supporting a network effect among our group.
What's your experience with solopreneurship? Is it all about you, or are you partnering to spur other solopreneurs?
I have gone the solopreneur route for 10 years and I have no problem with the “partnering up” idea. I have done for all these years.
It seems to be the wave of the future or it should be. It´s much better, just outsourcing sales, marketing, financial aspects etc to other entrepreneurs who are excellent in their respective areas.
Yes I agree with Mathias even though there are inherited problem with outsourcing. But being prudence in our business intergity and all good management aspect, it still demands skill and wisdom to become successful in “partnering up”.
Enjoy the day,
yarleechan from the land of down-under.
I started my unique service business in 1979. From time to time I hired a few salaried employees. None ever worked out. When I finally understood that my service was one in which a passion for truth and justice was essential I realized that I could not teach passion. So, I gave up on ever having employees and stick strictly to providing my teaching tool (”Methodologies of A Documentalist”) to anyone who expresses an interest in doing what I do. Other than a small fee (under $30) for printed materials and an E-book I do not charge a fee of any kind to learn about my rewarding service.
Thanks for raising this subject.
Some people have entrepreneurial personalities and many do not. Those who do will not lead the fullest life of which they are capable if they deny it.
Many have a bit both ways by working in employment and being entrepreneurial at, say, running a sporting club in their spare time.
Having had a long career in employment, a long time as an entrepreneur and a long time having a bit both ways I am certain the entrepreneurial route is the one I have found most fulfilling.
By all means partner (my wife was mine for many years).
well, i call it Lonely marketer. i’m starting a craft business. and im totally agree with your quote :We create less employment for others in the traditional sense, but more economic opportunity for ourselves by supporting a network effect among our group.
so social networking does a great job for small businesses
It surprises me that the Bed and Breakfast businesses seem to be ignored by Professionals that have lost their job and are looking for economic security in the general business job market. The B&B business is a stable and worthy investment. It has its positive side like independence, tax relief, meeting interesting people, honest work and the ability to determine your future. But one cannot forget its short side like upkeep of the business, booking cycle and raising rates and prices for staples and services. It is not cheap in this economic climate to buy and finance a business but in the B&B business, you buy the real estate and usually the business. You can start off making money and then go from there. So those that have a “buy out” and it’s eroding or a savings that’s not growing could be looking into Bed and Breakfasts.
Mitch,
I think that many solopreneurs are solopreneurs in name only. Why?
Because we have a vast supply of talent resources who fill the roles that salaried employees used to provide.
So, we can be virtually huge with the support of professionals who do well when they deliver on their promises and make us look good. We have the luxury of building the most talented virtual team on the planet by leveraging the abilities of other skilled solopreneurs.
My hunch is that, although solopreneurship looks bad on some employment fronts, many folks are doing the work they did before but as business owners themselves.
And, they share the same freedom and flexibility that I do as a solopreneur.
Newt, I agree. It’s impossible to build any kind of business scale alone. In my event business, even though our full time infrastructure is very small, I have 15 partners around the country who are virtual operations managers. My goal is to broaden that network to fill in other parts of the country. So we’re essentially a “virtual company,” which is a model that is now commonplace…and everyone gets to be their own boss.