Written by Rhett Buttle
From gig workers to solo entrepreneurs, self-employed individuals make up the overwhelming majority of businesses in the U.S. economy. To give you a little perspective, small businesses comprise 99.9% of businesses in the United States. Of those small businesses, 79.7% are self-employed. According to the most recent U.S. Census data, self-employed businesses are also growing at an average rate of 3.3%, which is at least six times higher than all other types of businesses.
Sadly, the Covid-19 pandemic has hit the most vulnerable businesses the hardest financially and while self-employed businesses can be nimble, they also have very little protection. Today, 43% of self-employed and micro-business owners say they are experiencing their worst economic downturn ever. Unlike other businesses, most self-employed individuals have difficulty obtaining financing through traditional lenders, with about half using credit cards regularly to manage their business expenses.
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