Leading Entrepreneurship

Over the last 10 years, US employment has grown an average 1.3% per year as the self-employed have grown an average 1.8%. If these trends continue, the percentage of the workforce that is self-employed will grow from 10.6% in 2005 to 12.8% within 50 years. This simple twenty percent increase may not seem like much, until you understand that this seemingly small difference represents 22 million US individuals.

Even More Trends
Over the last five years, non-employer businesses have grown an average 1.9% per year, while total employer firms have grown an average 0.3% each year. If this trend continues, the percentage of non-employers to all businesses will jump from 75% to 87% in 50 years. In numbers, this means that while less than one million employer businesses will be added to our economy over the next half century; non-employer businesses will grow by 27 million.

Fueling the Fire
We were all told when we where students, that if we do well in school we’d get rewarded with a corporate position, complete with job security, comprehensive health insurance, and upward mobility. However, the exact opposite has become the case. Even as corporations usurp an increasing level of ownership over America’s innovation, according to patent filings records over the last few years, their growing trends of instability, consolidation, globalization, outsourcing, and expense reduction tactics have forced the IRS to revaluate the tax code to account for, and, basically, encourage independent contracting. Those comprehensive health insurance plans we were promised are now tax-free health savings accounts. That job security and upward mobility has turned to a culture of “what have you done for me lately” – on both sides.

What is the Answer?
The answer has clearly been self-employment. Small Business Development Center effectiveness and impact figures have increased exponentially over the last ten years (according to the annual Chrisman Study), and University entrepreneurship and licensing programs are at an all-time high. Over the last 10 years of Federal Reserve Surveys of Consumer Finances, the median net worth of employees increased 11.4 percent to $67,200 while the self-employed increased their median net worth 75 percent to $335,600 –five times higher than US employees.

It’s Your Turn
What are your thoughts? Have you started, are you looking to start or have ambitions to go solo? Share your stories with us.