U.S. Cities With the Most Entrepreneurs (Special Report)

Self-employed entrepreneurs account for 10% of all staff, in response to 2020 knowledge 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 functions in early 2020, month-to-month enterprise functions soared to file ranges. The latest knowledge exhibits that functions stay considerably greater than they had been a number 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 utterly, a wave of newly-unemployed staff opened their very own companies in response.

Moreover, a mix of enterprise closures, provide chain issues, and altering client preferences created house out there for brand new varieties of companies to enter. Give up charges additionally reached file 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 whole, new enterprise functions elevated by practically 25% within the first yr of the pandemic. However practically a 3rd of all functions had been concentrated in two sectors: retail commerce {and professional}, scientific, and technical providers.

Retail commerce functions numbered 824,840 in 2020, or 19% of all functions. Skilled service functions numbered over half one million, roughly 12% of the full.

Recent research from the College of Maryland signifies that the rise in new enterprise functions has been pushed largely by non-employer companies—equivalent to sole proprietors, partnerships, or restricted legal responsibility firms with out workers.

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Whereas roughly one out of 10 U.S. staff are entrepreneurs, some areas of the nation have far greater concentrations. Nearly 17% of all staff in Montana and 14% of staff in Maine are self-employed in both their very own integrated or unincorporated companies. Different states with massive concentrations of entrepreneurs embody Vermont (13.0%), Florida (12.5%), and Idaho (12.4%).

However, self-employment in Rust Belt states like West Virginia, Ohio, Pennsylvania, Kentucky, and Indiana is much less widespread. Simply 6.8% of staff in West Virginia are entrepreneurs.

To seek out the metropolitan areas with probably the most entrepreneurs, researchers at Commodity.com analyzed knowledge from the U.S. Census Bureau. The researchers ranked metros in response to the share of staff who’re enterprise house owners.

Researchers additionally calculated the full variety of enterprise house owners, the full variety of new enterprise functions in 2020, median annual earnings for full-time enterprise house owners, and median annual earnings for all full-time staff.

Solely the 100 most populous metro areas had been included within the evaluation.

Main U.S. Metros With the Most Entrepreneurs

Listed below are the metropolitan areas with probably 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 functions 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

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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 functions 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 functions 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 functions 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 functions 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 functions 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 functions 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 functions 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 Seaside-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 functions 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 functions 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 functions 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 Seaside-Ormond Seaside, FL

• Proportion of staff who’re enterprise house owners: 13.0%
• Whole variety of enterprise house owners: 35,668
• Whole variety of new enterprise functions 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

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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 functions 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 Seaside, FL

• Proportion of staff who’re enterprise house owners: 14.7%
• Whole variety of enterprise house owners: 439,795
• Whole variety of new enterprise functions 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 functions 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

Detailed Findings & Methodology

To seek out the metropolitan areas with probably the most entrepreneurs, researchers at Commodity.com analyzed knowledge from the U.S. Census Bureau’s 2020 American Community Survey Public Use Microdata Sample and Business Formation Statistics. The researchers ranked metros in response to the share of staff who’re enterprise house owners. Within the occasion of a tie, the metro with the bigger whole variety of enterprise house owners was ranked greater.

Researchers additionally calculated the full variety of new enterprise functions 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 integrated or unincorporated companies. Solely the 100 most populous metro areas had been included within the evaluation.