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