The IRS has published data on the rise of sole proprietorships for 2007. More business returns were filed than in 2006. However, profits are down (in constant dollar terms) for the 2nd year in a row.
The rise in sole proprietorships is significant because as the economy sours, people consider striking out on their own. If they cannot find a job in the current job market, they create their own. And, as the economy begins to improve, most of the new job formation will come from small businesses such as these.
It is good to see that the entrepreneurial spirit is still alive and well in America.
The IRS published report on the details of this are found here.
