The perks of being a team of one

"Yes, cofounders can bring their own perspectives, along with "access to wider networks, greater capacity, and access to funding," says Monique Boddington, a management practice associate professor at the University of Cambridge's Judge Business School, whose research includes early-stage venture formation and startup strategy development. And yet: "An increasing number of individuals have been setting up businesses with no intention of taking on employees," she explains."

"That's because more people are identifying as solo entrepreneurs-"solopreneurs"-since the pandemic, Boddington adds. And while the distinction between self-employed, freelancer, and solopreneur is still murky, "the way to spot [solopreneurs] is whether their venture pursues novelty and scalable opportunity or mainly income replacement or replication," she says. For those running startups, many such workers are choosing to go it completely alone."

Cofounders can provide diverse perspectives, access to wider networks, greater operational capacity, and improved access to funding. A growing number of individuals start businesses with no intention of hiring employees, increasing the prevalence of solopreneurs since the pandemic. The distinction among self-employed, freelancer, and solopreneur hinges on whether a venture pursues novelty and scalable opportunity versus income replacement or replication. In 2022, 84% of U.S. firms had no employees: 29.8 million nonemployer businesses generated $1.7 trillion, about 6.8% of the economy. In 2023, Americans filed over 5.5 million new business applications. Over half of solopreneurs cite career autonomy as their motivation.

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