Sole Proprietorships in Real Estate, Construction Reign in Rural Areas

Many people want to be their own boss, but how are they going about it? Many people are forming sole proprietorships. In rural areas, sole proprietorships in the construction and real estate sectors are pulling in more revenue than any other non-employer business category. In 2023, non-employer firms in the combined construction and real estate industries generated more than $69 billion in gross receipts in rural counties, outpacing all other sectors.

These findings highlight the influential economic role that self-employed individuals and small, one-person businesses play in rural communities. Unlike enterprises with employees, non-employer firms typically operate as sole proprietors, meaning the owner is the only person working. There is no payroll and no staff. Yet despite that, in the construction and real estate slice of the economy they’re achieving substantial revenue totals.

The data reveal that across the many thousands of rural counties, construction (which might include residential building, remodeling, and specialty trades) and real estate (such as brokerage, property management, and sales) combine to dominate as the highest-grossing categories for sole proprietorships. These solo operations are helping to anchor local economies far from major metropolitan hubs.

There are several key implications involved:

• For entrepreneurs in rural zones, the barrier to entry may be lower in construction and real estate than in sectors requiring larger capital investment or staffing.
• Because revenue is high in these fields, they may offer greater income potential for individuals working solo than many other rural business categories.
• These industries can bolster local job creation indirectly: while the proprietors themselves may not employ others, their work supports subcontractors, suppliers, tradespeople, and local services.
• Rising revenue in construction and real estate in rural areas reflects demographic and market shifts: demand for housing, property turnover, housing stock maintenance, and development in non-urban regions all contribute.

However, while gross receipts are high, it is important to remember that revenue does not automatically translate to net income. Sole proprietors face all the business costs themselves, including equipment, materials, licensing, regulatory compliance, and marketing. The high figures do not guarantee high take-home profit.

For policymakers and rural economic planners, these findings suggest that helping small businesses in construction and real estate could make a huge difference. Offering resources like training, access to funding, help with licensing, and opportunities to connect with other professionals could help solo business owners grow even more.

In short, construction and real estate are common among rural sole proprietors and also earn the most revenue. This shows both the opportunity in these industries and how important they are for keeping rural communities economically strong.

Learn More About Sole Proprietorship

Owning your business can be exciting but scary. There are many unknowns and you can never be sure if your business will succeed.

Orlando sole proprietorship lawyer B.F. Godfrey from Godfrey Legal can help position you for success. There are many decisions to make, but we will help you make the right ones. To schedule a consultation with our office, call (407) 890-0023 or fill out the online form.

Source:

dailyyonder.com/construction-and-real-estate-are-the-highest-grossing-industries-among-sole-proprietors-in-rural-america/2025/08/06/