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Editor’s Notice: This story initially appeared on Commodity.com.
In line with 2020 US Census Bureau knowledge, self-employed entrepreneurs make up 10% of all employees. However whether or not born out of necessity or need, an increasing number 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 functions in early 2020, month-to-month enterprise functions rose to report ranges. The most recent knowledge reveals that functions are nonetheless considerably higher than they have been a number of years in the past.
The current escalation in new enterprise creation is because of a number of components. First, as many corporations scaled again operations or closed their doorways altogether, a wave of newly unemployed employees opened their very own companies in response.
Moreover, a mixture of retailer closures, provide chain points and altering consumer preferences created area out there for brand spanking new sorts of companies to enter. Dropout charges have additionally hit report highs in current months, because the pandemic has pushed many employees to rethink their careers and begin one thing of their very own.
General, new enterprise functions grew practically 25% within the first 12 months of the pandemic. However virtually a 3rd of all functions targeted on two sectors: retail {and professional}, scientific and technical providers.
To seek out the metro areas with probably the most entrepreneurs, Commodity.com researchers analyzed knowledge from the US Census Bureau. Researchers ranked Metros by the proportion of employees who’re entrepreneurs.
The researchers additionally calculated the overall variety of enterprise house owners, the overall variety of new enterprise functions in 2020, the median annual revenue for full-time enterprise house owners, and the median annual revenue for all full-time workers.
Listed here are the metropolitan areas with probably the most entrepreneurs.
15. Little Rock-North Little Rock-Conway, AR
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Proportion of workers who’re entrepreneurs: 11.3%
Whole variety of enterprise house owners: 36,315
Whole variety of new enterprise functions in 2020: 11.132
Median annual revenue for full-time entrepreneurs: $45,000
Common annual revenue of all full-time workers: $48,000
14. Lancaster, PA
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Proportion of workers who’re entrepreneurs: 11.5%
Whole variety of enterprise house owners: 31,500
Whole variety of new enterprise functions in 2020: 3,919
Median annual revenue for full-time entrepreneurs: $60,000
Common annual revenue of all full-time workers: $54,000
13. Lafayette, LA
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Proportion of workers who’re entrepreneurs: 11.7%
Whole variety of enterprise house owners: 27,264
Whole variety of new enterprise functions in 2020: 7,620
Median annual revenue for full-time entrepreneurs: $50,000
Common annual revenue of all full-time workers: $48,000
12. Charleston-North Charleston, SC
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Proportion of workers who’re entrepreneurs: 11.8%
Whole variety of enterprise house owners: 47,614
Whole variety of new enterprise functions in 2020: 14,359
Median annual revenue for full-time entrepreneurs: $65,000
Common annual revenue of all full-time workers: $50,000
11. Austin-Spherical Rock, TX
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Proportion of workers who’re entrepreneurs: 11.8%
Whole variety of enterprise house owners: 143,075
Whole variety of new enterprise functions in 2020: 34,716
Median annual revenue for full-time entrepreneurs: $65,100
Common annual revenue of all full-time workers: $60,000
10. Oxnard-Thousand Oaks-Ventura, CA
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Proportion of workers who’re entrepreneurs: 12.1%
Whole variety of enterprise house owners: 47,947
Whole variety of new enterprise functions in 2020: 6,898
Median annual revenue for full-time entrepreneurs: $70,000
Common annual revenue of all full-time workers: $60,200
9. Bridgeport-Stamford-Norwalk, Connecticut
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Proportion of workers who’re entrepreneurs: 12.2%
Whole variety of enterprise house owners: 57,354
Whole variety of new enterprise functions in 2020: 13,873
Median annual revenue for full-time entrepreneurs: $74,000
Common annual revenue of all full-time workers: $77,000
8. New Orleans-Metairie, LA
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Proportion of workers who’re entrepreneurs: 12.3%
Whole variety of enterprise house owners: 68,738
Whole variety of new enterprise functions in 2020: 29,830
Median annual revenue for full-time entrepreneurs: $50,000
Common annual revenue of all full-time workers: $50,000
7. Los Angeles-Lengthy Seaside-Anaheim, CA
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Proportion of workers who’re entrepreneurs: 12.3%
Whole variety of enterprise house owners: 766,024
Whole variety of new enterprise functions in 2020: 198,477
Median annual revenue for full-time entrepreneurs: $52,000
Common annual revenue of all full-time workers: $55,000
6. McAllen-Edinburg Mission, TX
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Proportion of workers who’re entrepreneurs: 12.8%
Whole variety of enterprise house owners: 41,838
Whole variety of new enterprise functions in 2020: 6.188
Median annual revenue for full-time entrepreneurs: $30,000
Common annual revenue of all full-time workers: $36,600
5. Cape Coral-Fort Myers, FL
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Proportion of workers who’re entrepreneurs: 12.8%
Whole variety of enterprise house owners: 44,029
Whole variety of new enterprise functions in 2020: 13,000
Median annual revenue for full-time entrepreneurs: $55,000
Common annual revenue of all full-time workers: $45,000
4. Deltona-Daytona Seaside-Ormond Seaside, FL
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Proportion of workers who’re entrepreneurs: 13.0%
Whole variety of enterprise house owners: 35,668
Whole variety of new enterprise functions in 2020: 10,271
Median annual revenue for full-time entrepreneurs: $51,000
Common annual revenue of all full-time workers: $45,000
3. Asheville, NC
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Proportion of workers who’re entrepreneurs: 13.4%
Whole variety of enterprise house owners: 31,283
Whole variety of new enterprise functions in 2020: 4,810
Median annual revenue for full-time entrepreneurs: $42,250
Common annual revenue of all full-time workers: $42,250
2. Miami-Fort Lauderdale-West Palm Seaside, FL
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Proportion of workers who’re entrepreneurs: 14.7%
Whole variety of enterprise house owners: 439,795
Whole variety of new enterprise functions in 2020: 217,834
Median annual revenue for full-time entrepreneurs: $41,000
Common annual revenue of all full-time workers: $45,000
1. North Port – Sarasota – Bradenton, FL
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Proportion of workers who’re entrepreneurs: 16.4%
Whole variety of enterprise house owners: 56,259
Whole variety of new enterprise functions in 2020: 13,328
Median annual revenue for full-time entrepreneurs: $50,000
Common annual revenue of all full-time workers: $52,000
methodology
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To seek out the metro areas with probably the most entrepreneurs, Commodity.com researchers analyzed knowledge from the US Census Bureau’s 2020 American Neighborhood Survey Public Use Microdata Pattern and Business Formation Statistics. Researchers ranked Metros by the proportion of employees who’re entrepreneurs. Within the occasion of a tie, the Metro with the bigger complete variety of entrepreneurs was ranked higher.
The researchers additionally calculated the overall variety of new enterprise functions in 2020, the median annual revenue for full-time entrepreneurs, and the median annual revenue for all full-time workers.
Entrepreneurs are outlined as self-employed individuals who have their very own included or unincorporated companies. Solely the 100 most populous metropolitan areas have been included within the evaluation.
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