CPA Practice Advisor - 17

A YEAR IN THE LIFE: PAYROLL ACCOUNTANT

24 Million Americans Would Rather
be Entrepreneurs

By Isaac M. O'Bannon, Managing Editor

A new report shows that 24 million Americans want to leave traditional employment
to become their own boss by 2021, but face barriers to making the leap. The report,
"Self-Employment in America Report 2019," was commissioned by FreshBooks, a
maker of cloud small business accounting software.
FreshBooks partnered with leading market research
provider Dynata to collect data from more than 3,700 Americans who work full time-either as traditional employees,
independent professionals or small business owners.
"Tens of millions of Americans have told us that their
'dream job' is to work for themselves," said Mike McDerment, co-founder and CEO at FreshBooks. "But this is a scary
proposition for most because the world is in many ways not
ready for them. The good news is that the payoffs-both
financial and otherwise-are real. It's a big part of our job,
for those just starting out and those who've been at it a
while, to help entrepreneurs realize their full potential."
Key findings from the report include:
Self-employment is the new American dream- but millions are
'stuck' on the sidelines. What's holding them back?
24 million Americans-more than the population of
Florida-want to work for themselves by 2021. There is
no doubt a significant mindset shift underway; however
millions of aspiring entrepreneurs say they face barriers
to making the switch:
■ 35 percent worry about inconsistent income
■ 28 percent don't have the cash to invest or need to pay
down debt first
■ 27 percent lack a complete business plan
■ 27 percent worry about earning less money
■ 20 percent don't want to give up health benefits
Self-employed Americans are happier, healthier and have no desire
to return to a 'regular job' anytime soon
The study sheds light on why so many want to be their own
boss. Currently, Americans who work for themselves report
high levels of satisfaction and well-being:
■ 96 percent have no desire to return to a 'regular job'
■ 7 in 10 (or 70 percent) say they have better work-life
balance
■ 61 percent would be happy with their achievements if
their career ended today
■ 55 percent say they have less stress
■ 54 percent say they are healthier
■ 27 percent spend more time outdoors and travel more
Career control is the #1 reason driving people to self-employment
What is it exactly, that motivates people to abandon the
security of a 9-to-5 job and a regular paycheck? The majority of people aspiring to work for themselves are seeking
freedom, flexibility and control:

■ 65 percent want to choose when they work
■ 56 percent want to choose how hard they work
■ 48 percent want control over their own career
development
■ 47 percent want control over where they work
■ 1 in 3 (or 31 percent) simply don't like reporting to others
Small businesses (and their owners) are getting younger
Two years ago, the 'typical' self-employed professional
was a tail-end Baby Boomer, but we're fast approaching
the point where Millennials become the dominant selfemployed workforce. This is not simply due to changing
demographics, but also because Americans are choosing
to become entrepreneurs earlier in their careers. The age
of new business owners in the U.S. has dropped by 4 years
(from 38 to 34 years old) since 2017.
College education is becoming less of a prerequisite
Should current trends persist, we might soon see the majority of self-employed Americans thriving without the benefit
of a college degree. Over the last two years, the number of
self-employed professionals with a college degree dropped
by 8 percent. Among small businesses founded in the last
two years, there's no difference in revenue comparing those
with and without college degrees.
Self-employed Americans typically earn more money and are more
productive after making the switch
While 63 percent of self-employed Americans believe money
is less important than quality of life, 55 percent say they're
earning more of the green stuff working for themselves. 4
in 10 work fewer hours but are more productive.
A Small Business Brain Drain might be on the horizon
Who's most likely to be eyeing self-employment within
the next two years? Contrary to popular belief, those most
eager to leave traditional work are not looking to escape
large corporations or cubicle farms. Actually, the opposite
appears to be true. A much higher proportion (35 percent)
of employees working at companies with less than 50
employees want to work for themselves within the next two
years, compared to only 25 percent of employees at larger
companies. This corresponds with another key research
finding: small business owners currently struggle with
finding talented staff or contractors more so than any other
challenge, including finding new clients. ■
A Year in the Life of a PAYROLL
Accountant is sponsored by

MAY 2019 ■

www.CPAPracticeAdvisor.com

https://www.adp.com/who-we-serve/by-partner/accountants.aspx?elqCampaignId=24142&CID=ADP_DIS_CPAPA_All_DIS_Banner_SBS_Null_Accountant_May_19_Nul http://www.CPAPracticeAdvisor.com

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