Table of Contents
Executive Summary
This report offers a deep dive into the world of solopreneurs, revealing the motivations, realities, and aspirations that define their entrepreneurial journeys. Based on survey data gathered directly from over 1,000 Simply Business customers, we highlight the critical role these individuals play in the U.S. economy and the challenges they navigate. Download the full report here.
Key insights
- 53% of solopreneurs started their business driven by passion, showcasing the profound personal connection behind their entrepreneurial pursuits.
- For 41% of solopreneurs, their business is their primary source of income, underscoring the serious commitment that powers this segment of the economy.
- Nearly half (48%) have gone at least a month without income, revealing the significant financial rollercoaster inherent in being a solopreneur.
- Over 60% underestimated the challenge of juggling every business role, revealing the hidden effort and demands behind the scenes of solo operations.
- More than 70% plan to grow their revenue within the next year, signaling strong optimism and ambition about the future of their ventures.
Why this matters:
Solopreneurs aren’t just a segment of the business world; they’re the very backbone of entrepreneurship. In a current climate marked by economic shifts and evolving market demands, solopreneurs are not just navigating a complex environment; they are driving innovation and resilience across the U.S. economy. This report offers insights into their evolving landscape, serving as a resource for understanding and lifting up this dynamic and essential community.
Who They Are and Why They Start
Passion stands out as the primary catalyst for launching a solo venture, while autonomy and supplemental income also play key roles. The varied full-time and part-time setups highlight the adaptable nature of the solopreneur economy.
Top Motivations for Starting:
- 53% – To pursue a passion, whether creative, personal or something else
- 32% – To gain more autonomy or flexibility
- 26% – To supplement income from a traditional job
- 23% – To make a positive impact in my community or industry
Their Current Business Setup:
- 41% – Full time; it is my primary source of income
- 13% – Full time; I have other sources of income though
- 26% – Part time; alongside another job or commitment
- 10% – Part time; with no other job or commitment
- 9% – I occasionally work on it but it’s mostly a side hustle
The Financial Reality
Financial uncertainty is a constant companion for many sole-proprietors, demanding incredible resilience. Despite these hurdles, their passion for their work fuels a strong motivation to grow, confident that persistence will pay off. This ongoing dance between passion and practicality deeply defines the solopreneurial financial journey.
Key insights
- Financial security: 58% of solopreneurs feel financially secure about their business.
- Reliable source of income: 64% agree their business is a reliable source of income.
- Length without income: Nearly half (48%) have gone without income for over a month.
- Savings runway / safety net: A significant 68% have less than 6 months of savings or no safety net at all.
- Giving up on business: The top reason for solopreneurs who have considered giving up on their business is financial stress or inconsistent income.
Challenges, Sacrifices, and Mental Health
Solopreneurs often underestimate the demands of managing every function alone. The pursuit of success frequently comes at significant personal cost, underscoring the need for support.
Most Underestimated Aspects (Top 3):
- 61% – The ability to handle all business functions by myself
- 53% – The amount of time and effort required
- 41% – The financial commitment and continued investment
Sacrifices Made (Top 4):
- 42% – time with family/friends
- 40% – a steady paycheck
- 35% – vacations or time away from work
- 34% – sleep
Giving Up on Business:
Over one-third (34%) have considered giving up on their business, with the top reasons including:
- Financial stress or inconsistent income (72%)
- Burnout or emotional struggles (53%)
- Difficulty securing customers or clients (45%)
Tools and Technology
Despite AI’s growth, most independent business owners aren’t using it indicating untapped potential. While many seek external advice, a notable minority prefer independent problem-solving.
Tool Adoption:
- 53% – Marketing / social media (Instagram, TikTok, Facebook, LinkedIn, email marketing tools, social media schedulers, etc.)
- 39% – Accounting/finance (cloud accounting tools, business banking apps, invoicing tools, etc.)
- 30% – Content creation/design (Canva, photo/video editors, podcasting tools, etc.)
- 23% – E-commerce/website hosting (Shopify, Etsy, etc.)
- 23% – AI / automation (generative AI tools, AI-powered decision tools, etc.)
Preferred Ways of Learning:
While the majority of solopreneurs actively seek advice and support through peers (54%) and online communities (36%), a significant minority, nearly 1 in 5 (19%), choose to navigate their business challenges independently without relying on external advice sources.
Social Media
Nearly half of solopreneurs aren’t using social media tools, representing a significant missed opportunity for growth. Short-form video is a powerful, preferred format for advice.
Key insights
- 35% turn to social media for business advice.
- 40% prefer short-form video when seeking advice or tips (TikTok, Reels, YouTube Shorts).
- However, 47% of solopreneurs aren’t using social media tools to run their business.
Where are Solopreneurs Heading?
Solopreneurs are looking ahead with remarkable optimism, ready to grow their businesses and embrace innovation. Notably, maintaining work-life balance remains a core priority alongside business expansion, demonstrating a holistic approach to success. This group is also eager to invest in new technologies and innovations to stay competitive, signaling a forward-thinking mindset essential for long-term viability. Their confidence and clear goals paint a picture of a resilient and adaptable force poised for continued impact.
Key Data Points:
- Growth confidence: Over three-quarters (76%) are confident their business will grow in the next 12 months.
- Sustainability confidence: 80% are confident their business will be sustainable in the next year.
- Future confidence: 79% are optimistic about the future of their business.
- Longevity: 57% plan to operate for 5+ years.
Goals for the Next Year:
- 72% – Grow revenue or sales
- 49% – Maintain stability and work-life balance
- 31% – Expand into new markets or audiences
- 27% – Invest in new tools or technology
- 27% – Launch new products or services
About Simply Business and Methodology
About Simply Business
Simply Business is a leading online insurance brokerage for small businesses and solopreneurs across the U.S. Our mission is to make business insurance simple, tailored, and accessible, empowering entrepreneurs to thrive by protecting what they’ve built. We offer a fully digital experience, allowing small business owners to easily research, compare, buy, and manage their policies, making at least this one thing fast, easy, and affordable. We understand the unique needs of solo business owners and are committed to providing comprehensive solutions and unparalleled support.
Survey Methodology
This report is based on a survey conducted by Simply Business from June 16 – 30, 2025. The survey gathered insights from 1,023 Simply Business solopreneur customers across various industries and geographic locations within the United States. Respondents were carefully selected to ensure a representative sample of the diverse solopreneur community. The data collected was analyzed to identify key trends, challenges, motivations, and outlooks, providing a robust overview of the current 2025 solopreneur landscape.
Deep Dive: Solopreneur Segments
This section provides a more detailed look into the distinct characteristics, challenges, and motivations of specific solopreneur segments, as well as an overview of who they are.
Who they are: These independent business owners encompass a wide array of professions and services, each contributing uniquely to the entrepreneurial landscape.
Tradespeople
These skilled professionals provide manual or technical services, such as electricians, plumbers, carpenters, landscapers, and general contractors. They show remarkable commitment and confidence but face weighty personal costs, including long hours, income volatility, and mental health sacrifices. Their low tech adoption could limit growth.
Key Data Points:
- Strong confidence / commitment:
- 51% say their business is full-time and their primary source of income – the highest of all sectors.
- 74% feel their business is a stable income source – also the highest.
- 79% say they are confident their business will grow in the next year.
- 49% say flexibility and control of their time is the most rewarding aspect.
- Pushing through, at a cost:
- Over 40% of tradespeople solopreneurs work more than 40-hour work weeks.
- Yet 42% have gone without income for a month or longer.
- Nearly 3 in 4 have less than 6 months savings or no savings at all.
- 1 in 3 tradespeople have sacrificed mental health to keep their business running – more than any other group.
- Underusing tech is a potential gap:
- 21% do not use any external tools to run their business.
- Just 14% of trades solopreneurs are using AI tools, the lowest of any segment.
- Only 10% use online marketplaces (e.g., Upwork, Fiverr, Bark, Thumbtack) for customer acquisition.
Lifestyle
These solopreneurs typically operate businesses driven by creativity, or a desire for flexible work, often including artists, photographers, coaches, and wellness instructors. These passion-driven self-employed owners have high growth ambitions but often face financial fragility. They’re the only key group that leverages social media well, making it a strength despite income challenges.
Key Data Points:
- Passion and growth ambition:
- 66% launched their venture to pursue a passion.
- 79% list “grow revenue & sales” as their top goal for the next 12 months – the highest of all segments.
- 34% still run the business part-time alongside another job.
- 78% work fewer than 40 hours per week.
- Financial positioning and potential risks:
- 55% have gone more than a month with no income.
- 61% have less than six months of savings or no financial safety net.
- 25% do not feel financially secure and 29% say income is unreliable.
- Social media toolkit:
- 66% use marketing / social media tools – the highest across sectors.
- 40% turn to social media for business advice – also the highest.
Business Professionals
Typically highly skilled, these individual entrepreneurs offer specialized knowledge-based services, such as consultants, accountants, marketing strategists, IT specialists, and legal advisors. These independent professionals are impact-driven and financially prepared but make personal sacrifices. They strategically use mentors and financial tools to manage challenges while prioritizing work-life balance.
Key Data Points:
- Motivation and impact:
- 35% started their business to make a positive impact on their industry.
- 17% say making a positive impact is the most rewarding part of their business.
- Business management and sacrifices:
- 60% underestimated how hard it would be to manage all parts of the business alone.
- 46% have sacrificed time with family and friends, yet nearly half (49%) state that a goal for the next year is to maintain stability and work-life balance.
- 45% have sacrificed a steady paycheck – the highest across segments.
- Financial positioning and support:
- 40% have more than six months of savings – the highest across segments.
- 39% utilize professional mentors or coaches.
- 58% use accounting/financial tools to run their business.
Want to see the full picture?
Download the full Power of One: 2025 Solopreneur Report for a complete look at the numbers, insights, and stories that define America’s solopreneurs.