Solopreneur Statistics 2026: The Truth About Income, Challenges, and Success Rates

The solopreneur economy is booming. From freelancers and consultants to creators and digital product sellers, millions of people are building successful businesses of one.

But just how many solopreneurs are there? How much do they earn? What industries are they in, and what challenges do they face?

In this article, we’ve compiled the most recent and reliable statistics on solopreneurs, drawing from government data, industry reports, and major research surveys. Whether you’re considering becoming a solopreneur yourself, writing about the solo business trend, or just curious about the numbers behind this fast-growing movement, this roundup gives you a data-driven look into solopreneurship.

Key Solopreneur Stats

• There are 29.8 million solopreneurs in the United States, accounting for $1.7 trillion in revenue (6.8% of total economic output)
• 81.9% of small businesses in the U.S. have no employees
• Only 41% of solopreneurs rely on their business as their primary source of income
• 35% of solopreneurs report high stress levels vs. 26% of business owners with employees
• Solopreneurs need to earn $219,000/year on average to feel successful
• The average solopreneur earns $39,273 annually
• 47% say flexibility and a steady income are their goals
• Only 3.6% bring in more than $1 million per year
• 77% are profitable in their first year
• Almost half started their business with less than $5,000

What Is a Solopreneur?

A solopreneur is a business owner who operates entirely on their own, without any full-time employees. Unlike traditional entrepreneurs who may build teams and scale operations, solopreneurs intentionally run lean businesses where they handle most or all aspects of the operation themselves.

Solopreneurs span a wide range of industries and work styles. Some are independent consultants or creative professionals offering services, while others run e-commerce shops, sell digital products, or operate as content creators. What unites them is their commitment to staying solo, at least for now.

Key characteristics of solopreneurs typically include:

• Full ownership of the business (no co-founders or partners)
• No W-2 employees, though they may hire freelancers or contractors
• A focus on flexibility, autonomy, and low overhead
• A wide range of income, from side hustles to six or even seven-figure businesses

With the rise of remote work, digital tools, and online marketplaces, solopreneurship has become more accessible than ever, and more people are embracing it as a long-term career path rather than a temporary gig.

Demographics & Business Formation

Who Are Solopreneurs?

The solopreneur demographic reveals a fairly balanced and educated workforce. Education levels of solopreneurs are notably high, suggesting that many are leveraging specialized knowledge and professional expertise in their ventures.

• Women own 42.7% of nonemployer businesses in the U.S. (U.S. Census Bureau)
• Over 53% hold at least a bachelor’s degree (Leapmesh)

Starting a Solopreneur Business

The pandemic fundamentally altered the solopreneur landscape, driving many to launch their own ventures out of both necessity and opportunity. Motivation varies widely among solopreneurs, with some pursuing passion projects while others respond to economic pressures or limited employment options. The financial barrier to entry remains remarkably low for solopreneur ventures, making this path accessible to many who couldn’t afford traditional business launches.

• 56% of solopreneurs launched their business after the pandemic began in 2020; the pandemic and rising costs were the main catalysts, with 57% reporting that inflation forced them to seek additional income sources
• 53% started their business driven by passion
• 36% cite a lack of other opportunities, viewing self-employment as the best way to create their own path forward
• 84% used their own money to start the business, avoiding outside investment or loans
• Almost half of solopreneurs started their business with less than $5,000, compared to only 10% of employer businesses

Sources: QuickBooks, Simply Business, and Gusto

Work Environment & Lifestyle

Remote work dominates the solopreneur model, with flexibility representing one of the primary appeals of solo business ownership. However, the independence comes with emotional costs that shouldn’t be overlooked.

• 76% of solopreneurs work remotely, at least some of the time
• 34% work from home
• 13% report feeling lonely or isolated, highlighting one of the psychological challenges of working without colleagues or a team environment

Sources: QuickBooks and Leapmesh

Financial Reality

Income & Revenue

The financial picture for solopreneurs reveals a wide range of outcomes, with earnings heavily skewed toward the lower end. While a small percentage achieve significant financial success, the majority earn modest incomes that often fall below traditional employment salaries.

• The average solopreneur in the U.S. earns $39,273
• 36% make less than $25,000/year from their business
• Only 3.6% bring in more than $1 million per year
• 30% rely on selling a product for their income, while others focus on services, consulting, or mixed business models

Sources: Comparably, QuickBooks, and Leapmesh

Financial Goals & Challenges

There’s a significant gap between current earnings and perceived success, revealing the financial strain many solopreneurs experience. Goals remain modest for most, prioritizing stability and work-life balance over explosive growth. Financial security remains elusive, leaving many vulnerable to income fluctuations and uncertainty.

• Solopreneurs report needing to earn an average of $219,000 per year to feel successful
• 47% say that flexibility and a steady income are their goal
• 68% have less than 6 months of savings
• 48% have gone at least a month without income
• Their business serves as the primary source of income for just 41% of solopreneurs

Sources: QuickBooks, Simply Business

Profitability

Despite the income challenges, there’s encouraging news on profitability. The high first-year success rate indicates that lower costs and overhead provide a major advantage for solo operations.

• 77% are profitable in their first year

Source: Gusto

Challenges & Stress Factors

Top Challenges

Running every aspect of a business alone creates significant operational hurdles. Time management emerges as the primary struggle, but solopreneurs face multiple competing demands across marketing, finances, and compliance. Many underestimate these demands before launching their ventures.

• 41% of solopreneurs report time management as their biggest challenge—more than any other issue
• 34% cite marketing or customer acquisition as their top challenge
• 29% struggle most with cash flow management
• 12% find regulatory compliance to be their biggest obstacle
• Over 60% said they underestimated the challenge of handling every aspect of the business on their own

Sources: Gusto and Simply Business

Mental & Emotional Impact

The stress of solo business ownership takes a measurable toll on well-being. Counterintuitively, having employees seems to reduce rather than increase stress levels. This stress correlates with lower satisfaction rates and pushes many to consider abandoning their ventures entirely.

• 35% of solopreneurs say their stress level is high, compared to 26% of business owners with employees
• 35% of solopreneurs reported a high level of satisfaction, compared to 44% of business owners with employees
• 34% have considered giving up on their business
• Financial stress or inconsistent income was a factor for 72% of those considering giving up

Sources: QuickBooks, Simply Business

Please see our report on mental health statistics of entrepreneurs for more details.

Tools & Support

Solopreneurs are increasingly turning to technology and selective outsourcing to manage their workload while maintaining their solo status. Artificial intelligence has become a significant asset for solo business owners, with rapid adoption suggesting solopreneurs are finding ways to scale their efforts without adding headcount.

• 1 in 3 have hired at least one contractor
• 64% use generative AI to assist with marketing
• 37% use AI to assist with customer service
• 36% use AI for help with sales

Source: Gusto

Final Thoughts

With 29.8 million Americans choosing this path and collectively generating $1.7 trillion in revenue, solopreneurship represents a legitimate and growing segment of the economy.

Yet the statistics also reveal the reality behind the independence. While 77% achieve profitability in their first year and startup costs remain low, most solopreneurs earn far less than they need to feel successful. High stress levels, time management challenges, and financial instability affect significant portions of this population. The flexibility and autonomy come at a cost—both financially and emotionally.

For those considering solopreneurship, these numbers offer a realistic foundation for decision-making. Success is possible, but it requires clear expectations, strong time management skills, financial resilience, and often the strategic use of AI tools and contractors to manage the workload. The path offers freedom, but that freedom demands self-sufficiency across every business function.