The significance of one-person firms in the US

Micro2 entrepreneurs are people who have started businesses but never hired any full-time employees. They have been termed the self-employed, non employers, necessity entrepreneurs, and 1099 employees. They have generally been dismissed in the literature as unimportant or as lifestyle entrepreneurs. We use the term micro2 instead because our research demonstrates the complexity of the networks and approaches these entrepreneurs use. This paper analyzes the reality of micro2 entrepreneurs by using US Census data. For example, they account for 76% of all businesses in the US. We then present the results of structured interviews to demonstrate the complexity of arrangements these entrepreneurs use.

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