County Ranked 15th Most Entrepreneurial Small Metro in the U.S.
Nationwide, there are close to 16 million self-employed individuals, representing around 10 percent of all workers. Interestingly, the median income for self-employed full-time individuals in the U.S. is only slightly higher than the median income for all workers ($50,000 vs. $48,000).
Self-employed individuals are found in every industry, but out of all workers, they make up the largest share of workers in the Other Services, Except Public Administration and the Agricultural, Forestry, Fishing and Hunting, and Mining sectors. Other non-public administration services include service providers such as mechanics and hairdressers. The Constructionindustry also has a large percentage of workers that are self-employed, while Manufacturing has the lowest share.
Just as self-employment varies by industry, it also varies by location. To better understand this variation, researchers at CloudKitchens wanted to see which metropolitan areas in the U.S. have the most entrepreneurs. To find the most entrepreneurial metros, they analyzed U.S. Census Bureau data and calculated the percentage of all workers who are self-employed in either their own incorporated or unincorporated business.
In addition, CloudKitchens calculated median incomes for self-employed individuals and all workers, as well as the most overrepresented industry for entrepreneurs in each metro. The most overrepresented industry represents a disproportionately high rate of entrepreneurs within the metro relative to the national level.
The data showed that states with the largest share of self-employed individuals are geographically diverse; however, states in the Midwest generally have the lowest percentage of self-employed individuals.
At the metropolitan level, areas with the highest levels of self-employment are also spread out. However, similar to the state-level analysis, locations in the Midwest tend to have fewer self-employed individuals. To further refine the analysis, researchers grouped metropolitan areas into the following cohorts based on population size: small (100,000 – 350,000), midsize (350,000 – 1,000,000), and large (more than 1,000,000).
This analysis found that among all small U.S. metros, Santa Cruz-Watsonville, CA has the 15th highest percentage of workers that are self-employed. Here is a summary of the data for the Santa Cruz, CA metro:
- Percentage of workers that are self-employed: 14.0%
- Number of people that are self-employed: 19,187
- Most overrepresented industry for the self-employed: Information
- Median total income for the full-time self-employed: $85,000
- Median total income for all full-time employees: $56,000
For reference, here is a summary of the data for the entire United States:
- Percentage of workers that are self-employed: 10.1%
- Number of people that are self-employed: 15,842,481
- Most overrepresented industry for the self-employed: Other Services, Except Public Administration
- Median total income for the full-time self-employed: $50,000
- Median total income for all full-time employees: $48,000 n
For more information, a detailed methodology, and complete results, you can find the original report here: www.cloudkitchens.com/the-most-entrepreneurial-cities-in-the-u-s/
