Despite Low Unemployment Rate, Sole Proprietorships Growing in South Dakota

A professor at South Dakota State University analyzed non-farm wage, salary and sole proprietorship data for 2000 and 2008 by county for South Dakota.  He found the number of non-farm business sole proprietors grew during this period. 

Key quote from an article in Sioux Fall’s Argus Leader:

“The bottom line is that the number of self-employed South Dakotans is increasing faster than those in hired positions. Statewide, nonfarm proprietors grew by 25 percent and total jobs increased 9 percent.”

I find this really interesting.

South Dakota has one of our nation’s strongest economies.  The unemployment rate is only 4.5% and only North Dakota’s unemployment rate is lower (3.8%). 

Unlike many parts of of the country, it seems unlikely that a lack of jobs and necessity entrepreneurship is driving the growth of solopreneurs in SD.  People appear to choosing to be self-employed over traditional employment. 

How and why people choose between traditional employment and self-employment is something we are constantly examining.  I look forward to learning more about what is happening in South Dakota.