Why it's time to make solopreneurship easier, not harder.

The U.S. is experiencing a remarkable rise in solopreneurship. In 2024 alone, Americans filed over 430,000 new business applications per month—a 50% increase since 2019. And nearly 83% of all small businesses are now “non-employer” businesses: freelancers, consultants, e-commerce sellers, creators, and more.

Yet even as solo entrepreneurship grows, the support systems around it have failed to keep up. Far too many entrepreneurs walk away from promising ventures—not because they lack grit or vision—but because they’re overwhelmed by red tape, tax complexity, or the high cost of healthcare.

If we want to encourage innovation, job creation, and economic resilience, we need to modernize the policies that shape the solopreneur experience. Here are three areas where government action could make a lasting impact:

1. Capital Access Designed for Solo Founders

Solopreneurs often fund their businesses with personal savings or credit. They don’t have access to investor networks or venture funding, and many aren’t aware of business financing tools they can use.

Policy opportunities:

• Expand access and awareness of tax-deductible business loans, including personal loans and home equity lines used for business expenses.

Introduce a phased self-employment tax, gradually increasing over the first few years to give new entrepreneurs breathing room to grow.

2. Health and Retirement Benefits Without “Job Lock”

Many Americans stay in traditional jobs simply to keep their health insurance or retirement benefits. This “job lock” suppresses entrepreneurial potential.

Policy opportunities:

• Reform HRAs (Health Reimbursement Arrangements) to allow self-employed individuals to use pre-tax dollars for healthcare, improving affordability.

• Exclude healthcare premiums and retirement contributions from self-employment tax calculations, providing much-needed relief and incentivizing long-term planning.

3. Simplified Compliance for the Self-Employed
Managing quarterly taxes, deductions, and paperwork can be confusing and intimidating—especially for new solopreneurs.

Policy opportunities:

• Let companies that hire freelancers withhold taxes on their behalf (similar to W-2 employees), helping with budgeting and reducing penalties.

• Expand education and tech tools that simplify compliance and provide real-time tax insights for self-employed professionals.

The shift toward self-employment isn’t a fad—it’s a structural transformation in how Americans work. If we want to fuel the next wave of innovation and small business growth, we must update the policy infrastructure to meet today’s entrepreneurial reality.
Let's make self-employment simpler, safer, and more sustainable for the millions of people building the future—on their own terms.