Entrepreneurs help drive the economy forward by increasing competition, introducing new ideas, and fueling job creation. A wide range of data have been used in an attempt to study this population. However, few studies have used the American Community Survey (ACS). In this paper we explore whether the ACS can be used to describe the demographic characteristics and economic outcomes of entrepreneurs.
Perhaps the most difficult part of studying this population is the lack of clear definition of the “entrepreneur,” which results in studies interchanging the terms “entrepreneur,” “self-employed,” and “business owner”. As seen in a large portion of research on entrepreneurs, this paper uses self-employment as a proxy for entrepreneurship.
Specifically, using self-employment data from the ACS we compare characteristics of the self-employed with their wage-and-salary counterparts, with special attention paid to industry, occupation, income, nativity, race, and sex. We also compare self-employment rates across demographic characteristics, and highlight demographic and economic differences among the self-employed by occupation and incorporation status. In addition, using ACS industry and occupation write-in response fields, we analyze the specific job titles, primary job duties, and industries most associated with self-employed workers. Overall, we find that demographic trends and economic outcomes of self-employed workers are similar to what prior research has found.