A Boston College Department of Economics working paper, “Self-Employment Transitions among Older Workers with Career Jobs,” (PDF) by Michael D. Giandria, Kevin E. Cahill, and Joseph F. Quinn, finds an increase in levels of self-employment as workers near retirement age. The study found that the percentage of self-employed men between the age of 51 and 61 rose from 20 percent in 1992 to one-third of the male workforce in 2004. There was also a rise in self-employment among older women, from 10 percent in 1992 to 15 percent in 2004. According to the authors, the “rise in self employment later in life is a result of a combination of factors, including the fact that self-employed workers tend to stay in the labor force longer than wage-and-salary workers and that more wage-and-salary workers switch into self employment later in life than vice versa.” (17)

According to the most recent Non-Employer Statistics published the U.S. Census Bureau, on average 2,356 people go into business for themselves every day. Their firms account for 78 percent of U.S. businesses and $951 billion in receipts.

“Among the fastest-growing industries are Web search portals (41.2 percent), Internet service providers (16.6 percent), nail salons (18 percent), electronic shopping and mail-order houses (12 percent), recreational vehicle dealers (12.1 percent) and landscaping services (11.1 percent).” The top five states in terms of growth in small businesses between 2004 and 2005 were the District of Columbia (9.6 percent), Nevada (7.7 percent), Florida (7.6 percent), Georgia (7.6 percent) and Utah (7.2 percent).