A new study has revealed the challenging financial reality facing America's growing population of solo entrepreneurs, with more than half earning less than $50,000 annually despite their business ownership status.
Modest Earnings for Majority of Solo Business Owners
According to research conducted by Mastercard and workforce payments platform Branch, starting and running a business alone - the definition of a "solopreneur" - might offer personal satisfaction and accomplishment, but substantial financial wealth remains elusive for most. The comprehensive study found that 55 percent of solopreneurs earn less than $50,000 per year, while a striking 79 percent make under $100,000 annually.
Popular Industries for Solo Ventures
Data from the Small Business Administration indicates there are more than 29.8 million solopreneurs operating across the United States. The administration's 2025 figures highlight the most popular sectors for one-person businesses, with professional scientific and technical services leading at 4 million solopreneurs. Transportation and warehousing follows closely with 3.9 million solo operators, while real estate, rental and leasing accounts for 3.1 million solopreneurs.
The study suggests that modest earnings may be partially explained by business maturity, with 62 percent of solopreneurs still in the early stages of their entrepreneurial journey. This developmental phase typically involves building client bases and establishing market presence rather than generating substantial profits.
Financial Resilience Among Older Solopreneurs
Despite relatively modest annual incomes, the research reveals that many solopreneurs possess significant financial resources that help sustain their businesses through challenging periods. The average solopreneur is over 45 years old, with baby boomers and Generation X comprising 61 percent of these independent business owners.
These demographic groups tend to have accumulated more valuable assets than their younger counterparts. Research by financial firm Empower indicates that Americans in their 40s have an average net worth of $770,892, compared to $321,549 for those in their thirties. Individual net worth typically surpasses $1 million once people reach their fifties, providing a financial cushion that supports solo business ventures during lean periods.
Cost-Conscious Growth Strategies
The study also examined how solopreneurs expand their businesses while maintaining tight control over expenses. Marketing approaches reflect this frugal mindset, with 63 percent of solopreneurs relying primarily on word-of-mouth recommendations to attract new customers. An additional 40 percent utilise social media platforms as their main promotional channel.
These digital tools and organic marketing methods allow solopreneurs to grow their enterprises without substantial advertising budgets, though they may limit rapid expansion compared to businesses with greater financial resources for marketing campaigns.
The research paints a nuanced picture of American solopreneurship - a landscape where financial rewards remain modest for most, but where demographic advantages and strategic frugality enable millions to pursue independent business ownership despite the economic challenges.
