Thousands more one-person businesses are reaching the coveted million-dollar earnings number — and it may continue to rise.
A Business Insider analysis of nonemployer businesses — those that are run solely by their owners with no other paid employees — found that between 2020 and 2021, the number of nonemployer businesses with revenues of at least $1,000,000 skyrocketed from just under 47,000 to nearly 58,000. The 2021 numbers are the most recent from the US Census Bureau.
This number had been steadily increasing since the Census Bureau started tracking it in 2012, when it was about 31,800. The 2020 to 2021 increase was the largest year-over-year increase since 2012.
Other top industries included retail trade, real estate, transportation and warehousing, and wholesale trade. On the flip side, utilities, mining, and manufacturing ranked lowest for millionaire businesses.
"If you look at who is truly wealthy in these towns, people who are eating at the nice restaurants, people who are at the nice country clubs, you'll find that they actually didn't have new ideas at all," said Nick Huber , who launched the " sweaty startups " movement and owns nine companies, told BI. "They didn't have tech startups that were aimed at changing the world, and they didn't build a billion-dollar business. Most of them did something common or boring, and they just did it uncommonly well."
The Census Bureau estimates there are now almost 28.5 million nonemployer businesses in the US, which has shot up during the pandemic.
The number of total monthly business applications grew from about 300,000 in February 2020 to consistently in the low- to mid-400,000s over the last few years, peaking with almost 546,000 in July 2020. Since March 2020, this has amounted to just under 22 million new applications.
Have you started a business that has been doing well financially? Reach out to this reporter at nsheidlower@businessinsider.com .
No comments:
Post a Comment