Take a look at self-employment in industries across the board, and it’s easy to see certain trends. But take an even closer look, and it's possible to see that some industries seem more favorable to the independent contractor who’s just trying to make money than to big business and large corporations. Forbes recently printed data compiled by the Bureau of Labor Statistics that shows huge differences in small business and big across several popular self-employment industries.
Comparing Self-Employment by Industry
A lot of data is hidden inside self-employment rates. A recent comparison of self-employed professionals in unincorporated (small) businesses and those who are the self-employed heads of their own corporations shows marked differences in some industries. Do some self-employment pursuits favor small business over big corporations? The numbers seem to say so.
Overall, there are roughly twice as many professionals who earn their living through unincorporated self-employment than those who are corporate heads, but the real differences appear when that data is carefully broken down into smaller segments. The agricultural industry shows the most impressive gap between the two: over 37 percent of self-employment workers are unincorporated; only 7.6 percent of those in the industry are corporate heads. A huge difference is evident in construction as well: 8.9 percent are the self-employed heads of corporations, 18.7 percent don’t create corporations to work in the industry.
Other industries show a greater number of corporations than unincorporated professionals, or a dead heat between the two. Mining and extraction, manufacturing and financial services show little difference in the numbers between the two types of self-employed workers.
What the Data Says
It’s important for professionals to have a working knowledge of their chosen industry. Small business owners compete with each other differently than they compete with corporations, and it’s a good idea for workers to know who they’re up against. Industries that seem to favor small business may not always be a favorable self-employment choice because there’s already so much competition out there.
Heading up a corporation isn’t the dream of every self-employed professional. Some would rather keep their business small, maybe even a one-person operation that’s based out of the home. If the industry seems to favor small business, it may even be preferable to keep things on a smaller scale. But if it doesn’t, small business owners have to find ways to set themselves apart from the corporate competition if they want to get some of the same clients. Knowing the industry helps self-employed professionals succeed in their chosen path.
KC Morgan - KC Morgan has been the featured writer in Self-Employment since 2006, using personal experience to create guides to being self-employed.
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