Fueled by digital tools and a desire for autonomy, millions are turning passion projects into payrolls and side hustles into full-time ventures. In fact, a 2023 study by Upwork found that 38% of the U.S. workforce, or 64 million Americans, had performed some sort of freelance work in the prior year, demonstrating a powerful move towards self-employment.
At Business Heroes, we exist to simplify the business journey for entrepreneurs. We provide clear, trustworthy reviews and comparisons of a variety of software solutions that entrepreneurs need to set them up for success, ranging from accounting to marketing to project management.
Given our interest in entrepreneurs, we recently explored self-employment among young Americans. Using the U.S. Census Bureau's American Community Survey, we analyzed characteristics of self-employed Americans aged 40 and under, to determine where and how entrepreneurial spirit is thriving. As you may expect, we discovered California is a hot spot for self-employed residents as the state claimed 9 of the top 20 cities, but you may be surprised to learn what other parts of the country topped our list. Read on to learn more about our findings.
Key Takeaways
- Miami, FL, Glendale, CA, and Pasadena, CA, are home to the most self-employed residents by city.
- Montana, North Dakota, and South Dakota are home to the most self-employed residents by state.
- Washington, D.C. is the highest-earning city for the self-employed, with an average annual income of over $129,000, followed by Arlington, VA, and Seattle, WA.
- Rochester, NY, Newport News, VA, and St. Paul, MN, are home to the most self-employed women by city.
- After niche agricultural roles, occupations like photographers, DJs, barbers, artists, and real estate agents top the list of professions with the highest rates of self-employment.
Where the Most Americans Are Self-Employed
While self-employment is a nationwide phenomenon, our analysis shows that specific cities have become hotbeds for young entrepreneurs. These urban centers offer a potent mix of networking opportunities, diverse markets, and a culture that celebrates innovation.
Leading the nation is Miami, FL, where 5.74% of the entire under-40 workforce is self-employed, the highest concentration of any city in our study. Florida's lack of a state income tax and a booming tech scene, often dubbed the "Silicon Shore," make it an attractive destination for new businesses and freelancers looking to maximize earnings.
Southern California is another region with relatively high rates of self-employment. Glendale (4.23%), Pasadena (4.18%), and Los Angeles (3.97%) rank second, third, and fourth in the nation, respectively. Los Angeles is the epicenter of the "creator economy," which is estimated to become a nearly half-a-trillion-dollar market globally. The area provides ample opportunities for freelance photographers, artists, and performers.
When it comes to women working for themselves, we discovered it was Rochester, NY, leading the charge with women making up 63.64% up the self-employed workforce. On the flip side, men lead the way in Akron, OH, making up 72.34% of the entrepreneurial population in the city.
Zooming out to a state level, it’s Montana ranking first with 3.99% of the workers under 40 working for themselves. This is followed by North Dakota (3.85%), South Dakota (3.77%), and Nebraska (3.17%), claiming second, third and fourth, respectively.
Popular Jobs Among Young, Self-Employed Americans
This shift towards service- and creator-based entrepreneurship highlights a significant trend: the barrier to starting a business has never been lower. The rise of accessible software solutions for booking, payment processing, marketing, and accounting has empowered a next generation of founders. Today, a solo hairstylist or photographer can manage their entire business from a smartphone, a feat unimaginable a decade ago.
The prevalence of these roles speaks to a broader economic shift towards personalization and direct-to-consumer services. Occupations like barbers (51.4% self-employed) and hairstylists (45.6%) thrive on direct client relationships and personal branding, models perfectly suited for self-employment. Similarly, the high rate of self-employment among photographers (54.2%) and artists (47.3%) reflects the growth of the creator economy, where individuals can monetize their unique skills and vision without the need for a traditional employer. And wellness-focused professions like acupuncturists (55.8%) and chiropractors (49.2%) cater to a growing consumer demand for personalized health services, a market that favors the customized approach of a solo practitioner over a larger one-size-fits-all structure.
Where Self-Employed Americans Earn the Highest Salary
Autonomy is a fine reward of self-employment, but financial success is usually the top goal. Our data reveals the cities where entrepreneurs aren't just getting by, but thriving.
The highest earners are concentrated in cities known for professional and tech services. Washington, D.C., leads all cities with an average annual income of $129,358 for the young and self-employed. Its neighbor, Arlington, VA, is second at $113,889. These figures are driven by the high demand for independent consultants and government contractors.
Seattle, WA, ranks third with an average income of $103,162, a testament to its massive tech ecosystem that creates high-paying opportunities for freelance developers, designers, and project managers.
Conclusion: Your Business Journey Starts Here
Building and sustaining a business requires courage, vision, and the right support system. As you embark on your own business journey, remember that you don't have to navigate it alone. Whether you're building your first website, managing payroll for a growing team, or finding a CRM to organize your clients, the team at Business Heroes is here to help you make confident choices.
Get started today by browsing our categories to find the tools you need most. Starting from the ground up and need to establish a new domain? Check out our ranking of website builders and compare them to determine which best fits your needs.
Want to integrate a project management system to help workflow? We have dug into the best tools and provided an overview for each so you can pick the one that will benefit your team most. For whatever stage your business is at, we are here to help guide you on your journey and help power your growth.
Methodology
In this study, we set out to learn where the most young Americans are working for themselves. To do this, we collected data from the U.S. Census Bureau's most recent American Community Survey. We focused on the percentage of workers 40 years and younger by city and state who are self-employed, working a minimum of 25 hours per week. We found this percentage by dividing the number of residents who work for themselves by the total number of residents surveyed.
In addition to the overall rankings, we also calculated where the most young women work for themselves, how much the average self-employed worker earns by city and state, and the occupations with the most self-employed workers.
BusinessHeroes' editorial team is a dedicated group of seasoned editors and writers with extensive expertise in evaluating and comparing business tools, software, and services. With a deep understanding of small business needs, tech solutions, finance, and entrepreneurship, they deliver practical, reliable guidance to help business leaders make informed decisions.
