Over the last decade, the workplace has been defined by big headlines: mass layoffs, the rise of remote work, and the promise (or threat) of AI. But beneath the noise, a quieter revolution has been underway.
Millions of people have left traditional jobs to build something of their own—fueled by technology, flexible work models, policy changes, and a cultural shift toward independence. As of 2023, there were almost 30 million solopreneurs or nonemployer businesses in the U.S.—in industries ranging from healthcare to real estate to tech. But here’s what’s different today: We’re no longer just talking about side hustlers, part-time freelancers, and gig workers.
At Gusto, we recently studied nearly 25,000 owner-only businesses. To focus on sustained business activity, we specifically looked at businesses that stayed open for at least five years and paid themselves during 75% of the months or more that they were on Gusto, indicating consistent business engagement. Our research showed that these folks—who I’ll refer to as established solopreneurs—were running real, sustainable, and growing businesses across every corner of the economy.
The quiet rise of the solo career
What we found is incredibly surprising: In their first year, the average business revenue for these established solopreneurs is nearly $300,000. For example, construction solopreneurs—like general contractors and home repair pros—earn above-average revenue, offsetting high expenses with strong income. By year five, that number grows to over $500,000. And while many start by paying themselves via payroll conservatively—about $41,000 in year one—by year five, they’re earning 25% more than similarly skilled full-time employees. What might start as a leap of faith with high aspirations becomes a smart financial decision in the end.
This shift isn’t happening on the margins. Of the nearly 35 million small businesses in the U.S., more than 80% are owner-only businesses. One in nine working adults now earns income through one-person businesses. They’re building companies designed for independence and impact, and they’re showing that you don’t need a big team to make a big dent in the economy.
Millennials are leading the way
One of the most encouraging signs is generational. Millennials, often dismissed as restless or risk-averse, are now the fastest-growing group of solopreneurs, particularly among these established solopreneurs. They start with less revenue than older peers, but grow faster and finish stronger.
These millennial solopreneurs see the largest revenue gains of any generation, according to our research. They start with roughly $196,000 in year one business revenue—nearly $100,000 less than Gen X or boomers—but end year five earning over $525,000, surpassing older generations and leading all age groups. Many millennials are starting businesses in information or professional consulting services, which typically have higher revenue and the most upside through continued growth. Most are doing it while reinvesting in their businesses instead of immediately increasing personal pay. It’s a sign that this isn’t a temporary detour—it’s a career path with longevity and long-term upside.
Gen Z solopreneurs, while still early in their journey, are following close behind. The oldest members of Gen Z are just reaching their late 20s, and they’re already launching businesses that outperform expectations.
The value equation has changed
There’s a simple reason this trend is accelerating—and it’s not just about money. It’s about freedom. Solopreneurs are reclaiming control over both their income and their time. They can adjust their own pay as their business grows, set their rates, and define their scope of work. While employees may wait years for a modest raise or navigate layers of approvals just to try something new, solopreneurs have the power to make decisions—and reap the rewards—immediately.
Just as important, they’re designing work around their lives, not the other way around. Whether it’s the ability to pick their kids up from school, work out in the middle of the day, or focus on deep work without back-to-back meetings, solopreneurs are choosing flexibility as a core feature of their careers.
As their businesses grow, solopreneurs are making increasingly sophisticated choices such as incorporating as S-corps, setting reasonable salaries, and using smart financial strategies to reduce tax burdens and build long-term value. Gusto data shows that solopreneurs who elect S-corp status consistently pay themselves more than peers using other structures. But getting these decisions right isn’t easy and that’s where the current system often falls short.
The tools are finally catching up
For too long, solopreneurs had to cobble together systems meant for side hustles or massive enterprises. The in-between didn’t exist. But the market is finally waking up to their needs.
At Gusto, we built Gusto Solo to support this growing group of entrepreneurs. It’s a platform designed specifically for solopreneurs who have outgrown personal finance tools but aren’t yet looking to build a large team. These founders are running lean, profitable businesses. They deserve professional-grade tools built just for them.
This isn’t a trend. It’s a transformation.
Solopreneurship is reshaping how economic value gets created, who controls it, and what a career can mean in the 21st century. These businesses may be small by design, but they represent a major shift in power: from institutions to individuals. And with the right tools, support, and recognition, they’re poised to become one of the most dynamic forces in the modern economy.
It’s time we give solopreneurs the same attention, investment, and infrastructure we give to startups. Because the future of work is not being built solely in boardrooms. It’s being built right now, one person, one business, at a time.
Tomer London is cofounder and chief product officer of Gusto.
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