How Solopreneurs Operate: Inside America’s Growing Innovation Hubs

Apr 14

A deeper look at key trends and considerations for solo pros in the U.S. business arena

This article was first published on LinkedIn on April 2, 2025.

The United States has long been seen as a land of opportunity, attracting entrepreneurs from around the globe. For solopreneurs—individuals who run their businesses single-handedly—the U.S. offers a unique ecosystem that fosters innovation and growth.

Despite challenges such as high operational costs and intense competition, the country’s robust startup culture, vast consumer markets, and abundant funding opportunities make it an attractive environment for solo business ventures.

The latest stats speak volumes. There were 5.2 million small business applications filed last year in the U.S. 🇺🇸, following 2023’s record 5.5 million. These founders include a rising number of nonemployers who run profitable companies on their own. Solopreneurs ran 84% of American businesses in 2020, up from 76% in 1997, per Intuit QuickBooks Small Business Index Annual Report. While that total dipped slightly coming out of the pandemic, recent surveys indicate an even higher percentage today.

Here’s a closer look at key trends and considerations for solopreneurs in the U.S. in 2025.

Why So Many Solo Pros Flock to America

Thriving Startup Communities

The U.S. consistently ranks as one of the top countries for startups and entrepreneurs, due to it having the world’s largest venture capital market, a plethora of innovation hubs, and a highly skilled workforce. Major U.S. cities like New York, San Francisco, and Los Angeles, among others, help fuel the birth of new ideas and support their development into viable businesses, per StartupBlink, which ranks global innovation ecosystems.

Take, for example, Sean MacMannis of Positive Sum—a fractional marketing consultant and career strategist in San Francisco who helps high performers pivot from traditional jobs to fulfilling independent work. With a background leading go-to-market strategies for venture-backed startups, Sean has built and scaled products from zero customers to $1 billion-plus in revenue.

“The biggest win isn’t just financial—it’s that I’m building a business that supports the life I want, instead of the other way around,” he tells us about his endeavors. Stay tuned for our Q&A with Sean on April 9th.

Massive Consumer Markets

The U.S. is home to some of the world’s most attractive consumer markets with a population of 340.1 million. That’s up from 336.8 million in July 2023, marking the highest year-over-year increase since 2001.

America’s diversity and innovation culture provide solopreneurs with a broad audience for their products and services. This extensive market access allows solo entrepreneurs to test, refine, and expand their offerings to meet diverse consumer needs.

“All expertise is valuable and transferable,” says Wes Wheless of Develop My IP, a boutique business consultancy in Seattle that helps new solo consultants distill their unique expertise into monetizable intellectual property.

“Ex-corporates often think that their insights are highly contextual to their former employers, but in reality, there's almost always a slice of the market that has an urgent interest in knowing what you know from years in your domain,” Wes notes.

The Rise of Millionaire Soloists

The landscape for solo pros in the U.S. has seen remarkable growth in recent years. The number of nonemployer firms generating between $1 million and just under $2.5 million in annual revenue more than doubled in 2022, reaching 104,525, according to a recent Forbes article from journalist and content strategist Elaine Podfeldt.

Additionally, more than 11,000 firms surpassed $2.5 million in revenue. This surge is largely attributed to advancements in artificial intelligence and favorable economic trends, enabling solopreneurs to scale their businesses more effectively.

Mike Brown, a former U.S. naval flight officer in Denver who coaches entrepreneurs and founded the million-dollar solo venture Unbreakable Wealth, tells Podfelt: “In my opinion, in the next 18 months we’ll see a billion-dollar, one-person company.”

Capital for the Qualified

One of the big advantages for many solopreneurs in the U.S. is the gamut of financing options. The country boasts well-established banking and VC ecosystems, on top of other debt and equity sources, providing opportunities for established independent business owners and startups to secure capital.

Additionally, organizations such as the National Association for the Self-Employed (NASE) offer growth grants to assist with expenses related to training, marketing, and technology investments. These resources can help solopreneurs scale their operations more effectively.

Image by Gerd Altmann from Pixabay

Navigating America’s Distinct Challenges

While the U.S. offers numerous advantages, solopreneurs must also contend with challenges inherent to its competitive landscape. This includes saturated markets, doubts and fears about networking, and high operating and living expenses. Political and economic uncertainty in recent years has created additional hurdles for independent business owners.

Without delving into global tensions, these are some of the biggest challenges for solopreneurs in the U.S. business arena:

High Operational Costs

Operating a business in the U.S. can be costly, with expenses like healthcare, taxes, and living costs varying significantly across regions. Major cities where innovation hubs thrive have seen their housing costs rise substantially in recent years.

Solopreneurs need to budget meticulously and look for cost-effective solutions—including using the latest technologies combined with remote work—to manage these financial demands.

Steep Competition

The vibrant startup culture in the U.S. leads to saturated markets, making it imperative for solopreneurs to differentiate themselves. Building a unique personal brand becomes essential to stand out. By showcasing individual expertise and personality, solopreneurs can attract clients who resonate with their brand.

“The most engaging people I know aren’t trying to create a perception of perfection—in fact, they’re intentionally doing the opposite,” says Melissa Zehner of the entrepreneurial marketing shop Scroll-Stopping Content in Vancouver, Washington. “They share real-life ups and downs, invite others to help them think through questions before they’ve found all the answers, and they prioritize real conversations ahead of conversions.”

Networking Misconceptions

Networking is a cornerstone of business success, especially for solopreneurs. Engaging with professional communities, attending industry events, and utilizing platforms such as LinkedIn can lead to collaborations, mentorships, and new business opportunities.

Many solopreneurs, however, struggle with effectively using social platforms to grow their businesses, often under the misconception that these channels are solely for selling products and services. The reality is that social media can be used for networking, community building, and free marketing within niche industries.

Proven Strategies for Success

A majority of small businesses take at least two years to become profitable and a majority of solopreneurs surveyed in America consider $100,000 per year in earnings as a milestone for success. To thrive in the U.S., solo professionals can adopt several strategies that leverage the country’s leading economy and other advantages while mitigating its challenges.

In addition to careful time management and self-reflection, these are some of the key success strategies for solopreneurs in the U.S. business arena:

Embrace Tech Advancements

The rise of generative AI and other technology tools has made solo entrepreneurship more feasible. These advancements enable solopreneurs to automate routine tasks, analyze market trends, and enhance customer engagement without the need for large teams.

“Slack Pro and ChatGPT 4 have become essential to my business,” says Natalie Hoberman of Natalie Hoberman Consulting—a fractional CMO based in the Los Angeles Metro Area. “Slack helps me streamline communication, set up project trackers, and keep everything organized in one place. As for GenAI, if you’re not using it to boost your efficiency, you’re likely falling behind.”

Tailor Your Personal Branding

In a competitive market, having a strong personal brand gives solo pros a clear advantage and, in many cases, more motivation to push further. Sharing your values and origin story while maintaining a consistent online presence can humanize your business and build trust with your audience.

With brand trust at a low, messaging gets above 550% more reach when it comes from an employee's personal account rather than the company at large, the personal brand agency Kurogo found.

Explore Unique Funding Options

Outside of commercial bank loans and private equity designed for seasoned operators, independent business owners can find more affordable funding options to fit their needs. The U.S. Chamber of Commerce, for instance, provides a regularly updated list of grants, loans, and other resources to help businesses sustain and scale.

Nonprofit lenders and Community Development Financial Institutions (CDFIs) are often a good place to start for solopreneurs who anticipate long-term growth but operate under low profit margins. For those seeking debt financing for working capital, it’s important to borrow from a responsible lender who understands your mission and financial goals and limitations. Always do careful research before taking out a business loan of any kind.

Build Strong Support Networks

While solopreneurship emphasizes independence, having a support system is crucial. Connecting with fellow entrepreneurs, joining professional organizations, and seeking mentorship can provide guidance, motivation, and collaboration opportunities. These connections can alleviate feelings of isolation and contribute to personal and professional growth.

“I can never say enough about the power of networking and supporting small businesses,” says Jehan Daughterty of Jehan LLC—a professional branding and portrait photography company in Columbus, Ohio.

Elevating America’s Independent Business Economy

The U.S. remains a prime destination for solo pros, offering a dynamic environment that promotes innovation and provides many of the resources needed for growth. More than half (56%) of solopreneurs surveyed by Intuit QuickBooks launched their businesses post-2020, with inflation and the pandemic cited as the main drivers.

By understanding and navigating challenges in the U.S. market, solopreneurs can capitalize on the many opportunities available looking ahead. Those who know how to take advantage of America’s strong markets and distinct business environments will have a better chance of sustaining and scaling during times of volatility. This, in turn, can propel the country’s independent business economy to new heights.

How Solopreneurs Operate is a weekly Q&A and content series and a collaborative platform for independent business owners to share useful info and broaden the conversation around solopreneurs as a growing economic force.

Make sure to read our ongoing conversations with professional soloists around the world as well as our first geographic report for more trends and insights.

Join the Conversation!

🌎 🌍 🌏 What country do you operate from as a professional soloist?

🌇 🏡 ⛺️ How has your location influenced your solopreneur journey?

💵 💴 💶 Which part of the world do you think offers the greatest upsides?

🌱 🌿 🍀 What are the coolest homegrown solo ventures in your region?

Drop a comment below and let’s discuss!

Idris Sakirat