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A new report by CloudKitchens that looks at the most entrepreneurial metropolitan areas in the United States found that Bend-Redmond has the second-highest percentage of self-employed workers of all small U.S. metros.
Nationwide, there are close to 16 million self-employed individuals, representing about 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 nonpublic administration services include service providers such as mechanics and hairdressers. The construction industry also has a large percentage of workers who 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, Bend-Redmond has the second-highest percentage of workers who are self-employed. Here is a summary of the data for the Bend, OR metro:
Percentage of workers who are self-employed: 20.5
Number of people who are self-employed: 18,521
Most overrepresented industry for the self-employed: Professional, Scientific and Management, and Administrative and Waste Management Services
Median total income for the full-time self-employed: $60,000
Median total income for all full-time employees: $44,000
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 who 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
For more information, a detailed methodology and complete results, you can find the original report at cloudkitchens.com/the-most-entrepreneurial-cities-in-the-u-s/
