Why Women Are Choosing Solopreneurship
Google defines solopreneur as a person who sets up and runs a business on their own. Webster defines it as one who organizes, manages, and assumes the risks of a business or enterprise without the help of a partner. Simply, solopreneurs are those who have chosen to become entrepreneurs by performing all duties related to their business themselves. Solopreneurs often manage their businesses as a sole proprietorship or limited liability company which grants them full decision-making authority.
When viewing solopreneurs or sole proprietorships from a tax perspective, they are known as a pass-through business. It’s called pass-through, because the profits of the company are passed directly through the business to the owner and are taxed on the owners’ individual income tax returns.
Most solopreneurs are freelancers and independent contractors who work in the professional services industry. Almost one-third of all small businesses in the United States are sole proprietorships. According to Forbes, about 19.4 million nonemployees businesses are incorporated as sole proprietorships in the US. This is quite substantial since only 1.4 million are corporations and 1.6 million are partnerships.
According to an article in PRNewswire, Spencer Brenneman found that career opportunities for solopreneurs were on the rise. In 2019 there was an annual projected growth of 3.6% for independent workers. He said, “82% of independent workers report feeling happier working alone than they did for traditional companies.”
Both pros and cons exist in becoming a solopreneur. We will start with some of the barriers or downsides, followed by the advantages and rewards to help us understand why women are leaving the workplace to pursue other avenues for personal satisfaction and fulfillment. Even if they don’t leave the workforce altogether, several are shifting to add side business endeavors as solopreneurs to follow their dreams and to achieve greater gratification.
“We need to accept that we won’t always make the right decisions, that we’ll screw up royally sometimes – understanding that failure is not the opposite of success, it’s part of success.” – Arianna Huffington
Challenges
One of the most obvious challenges of solopreneurs is cash flow. As the owner, when you stop working, your cash flow can be greatly reduced or nonexistent. In other words, during your entrepreneurial endeavor, there is a great probability funds will come to a screeching halt or at least there will be ebbs and flows. By choosing to be a single-person business, cash flow can be a constant concern.
Other drawbacks include lack of motivation or inspiration, an unchecked drive for excellence in all areas which is perfectionism and can’t be attain, and the absence of answerability, commonly referred to as accountability. Lastly, one of the greatest shortcomings several solopreneurs may face are feelings of loneliness and disillusion that seclusion and isolation can bring.
- Negative Cashflow – the amount of time it takes to receive money after delivery or services rendered can prove problematic for a single member business/solopreneur. Prolonged cashflow challenges that are unresolved will ultimately destroy your business, therefore this threat must be managed.
- Perfectionism – is filled with traps and landmines that cause you to be overly cautious. You are hesitant to move forward, promoting procrastination and rationalization which paralyzes your ability to move forward. Most of all, perfectionism blinds you to new opportunities because of your biased focus on current challenges. Rather than chasing perfectionism, you should learn to value the process and not just the result because lessons learned from the process can alter the result in a positive way.
- Absence of Accountability – the lack of answerability to someone other than yourself when you’re working to attain specific goals and core objectives can be a true pitfall. Engaging an accountability partner might be quite helpful. They are useful when you need someone to remind you about deadlines and encourage you to take the next steps and targeted action to achieve your goals.
- Loneliness/Disillusioned – feeling isolated and disconnected is common among solopreneurs. This can quickly lead to you becoming cynical and disenchanted. Before you know it, you’re dissatisfied with your progress or lack of progress, followed by disappointed in yourself and others. The key is to recognize these feelings are normal, and most will experience them at one point of another, however how you respond and how soon you recover and return to a productive state is essential to your success.
We have spent the last few minutes reviewing the disadvantages to being a solopreneur, but there are vast benefits as well.
Benefits
While obviously there are challenges to being a solopreneur, as mentioned previously, yet more and more women are choosing to do so. Despite these difficulties, women are enthusiastically deciding to become solopreneurs in record numbers. Let’s examine a few of the benefits that are luring them in this direction and why they are making the leap.
Woman are moving to solopreneurship as a means of investing in their personal freedom and financial independence. Looking for meaningful engagement, ways to contribute and to do work that aligns with their values is also appealing. As we examine further, another slightly altruistic reason may be impacting their decisions. Especially if they are looking for entry into entrepreneurship that allows them to experience a greater purpose beyond monetary rewards. Some are establishing businesses that add value to their communities or to a targeted segment that has been historically overlooked or underserved. The possibility of a solopreneurship leading to a social enterprise can be a great inducement for some and a major enticement for others.
- Financial and Personal Independence – As we have recently learned, solopreneurs are able to provide products and offer services that can be performed remotely with great efficiency. We are hearing from women those financial constraints are being diminished because workspace requirements are minimal. Most can accomplish their tasks, and deliverables with just a computer, internet connection, creativity, and time management. Their personal independence and fulfillment are valued highly as one of the major reasons they have abandoned the typical workplace option. Therefore, home-based, and small businesses are experiencing rapid growth.
- Value Alignment – After much study, it has been determined that when an employees’ personal values align with a company’s core values, they are much happier and inspired to do their job. What better way to ensure there is congruency with your core values and those of the entity providing you a paycheck, than becoming a solopreneur. Built into this choice is high satisfaction as an independent worker. The reward of becoming the boss can be hard to resist. So having the flexibility to create and operate a business that supports your values, lifestyle, and quality of life continues to be a leading incentive and tops the list as one of the advantages.
- Social Enterprise – Some women are using solopreneurship as a precursor to a social enterprise launch. Many choose this avenue because they view social entrepreneurship as a means to create positive change. Embarking on this path of social enterprise can produce positive economic outcomes for local communities by delivering products and rendering services they sorely need. The idea is not just to make change for the sake of change or something different, but to engage in making transformational changes as part of their business model and enterprise. Many of these businesses have the added benefit of truly delivering ongoing social impact.
“Dear optimist, pessimist, and realist – while you guys were busy arguing about the glass of wine, I drank it! Sincerely, the opportunist!” – Lori Greiner
Numerous solopreneurs are reveling in their newfound ventures because they feel a sense of control to determine how they want to design more happier and healthier lives. Understanding, the choices they make clearly puts them in charge of their wellbeing. Choosing this path makes you accountable and responsible for your future. While for some this can be a bit frightening, for others its remarkably liberating. I noticed a pattern and a few shared sentiments among solo businesswomen when I posed the question “why did you choose solopreneurship”? Without hesitancy, almost all expressed, it was the autonomy it presented, the fulfillment provided as well as the ease of entry to get started.
Being a solopreneur isn’t for everyone, but for those women who are embarking on this path, they are finding plenty of allies, welcoming networks and a sense of empowerment that previously eluded them.
