Business Owners and the Self-Employed: 33 Million (and Counting!)

Self-employment is far more widespread than traditional labor surveys suggest, with over 33 million Americans operating nonemployer businesses. The paper analyzes IRS tax data to track how people move between self-employment, wage jobs, and hybrid work arrangements, revealing how fluid and temporary many of these roles are. It also shows how legal structures—like sole proprietorships, S corporations, and partnerships—shape entry, exit, and growth patterns. The rise of gig work, digital platforms, and small-scale entrepreneurship is reshaping how economic activity is measured and understood.