For many entrepreneurs, business ownership represents more than independence; it’s a pathway to financial security, generational wealth, and long-term impact. But new research suggests that not all forms of entrepreneurship create the same outcomes.
A new report from Gallup’s Pathways to Wealth initiative, supported by JPMorganChase and the Ewing Marion Kauffman Foundation, reveals that business ownership can improve financial well-being, but the greatest advantages are concentrated among entrepreneurs who successfully build businesses that employ others.
The findings offer important insights for minority-owned businesses, women-owned businesses, and small business leaders seeking sustainable growth in an increasingly complex economy.
Business Ownership Still Creates Opportunity
The study surveyed nearly 6,000 working adults nationwide and examined how different work arrangements connect to income, financial security, and overall well-being. Researchers found that owner-employers, business owners with at least one employee, reported the strongest financial outcomes across nearly every category.
Among owner-employers, 68 percent reported thriving in life, compared with 49 percent of employee-only workers. They also reported a median household income of $155,000, significantly higher than the $105,000 median reported by employees. Additionally, 55 percent of owner-employers said they were living comfortably on their current income.
The data reinforces a reality many entrepreneurs already understand: ownership alone is valuable, but building a scalable business often creates greater financial rewards.
At the same time, the report highlights how difficult that transition can be. Only 2 percent of respondents qualified as owner-employers, and fewer than 1 percent of workers who were employees in 2023 became employer-business owners by 2025.
Three Key Takeaways
1. Growth Creates the Biggest Wealth Opportunities
The research found a significant gap between entrepreneurs who employ others and those who operate alone.
Owner-employers reported median business revenues of $350,000 and median profits exceeding $100,000. By comparison, non-employer businesses reported median revenues of $40,000 and median profits of $23,000.
The lesson is clear: scaling a business, not simply owning one, appears to be the strongest driver of wealth creation.
2. Entrepreneurs Remain Cautious About the Economy
Despite record levels of business formation since the pandemic, business owners expressed concern about the current business climate.
Only 17 percent of owners said it is a better time to start a business than a year ago, while 44 percent said conditions have worsened. Economic uncertainty, taxes and regulations, and tariff-related concerns ranked among the most commonly cited challenges.
For diverse entrepreneurs, these findings highlight the importance of strong financial planning, cash-flow management, and business resilience strategies.
3. AI Is Becoming a Competitive Advantage
Artificial intelligence is steadily becoming part of the entrepreneurial toolkit.
Business owners who use AI report applying it to customer acquisition, marketing, product development, customer service, and accounting functions. Researchers also found that business owners were more likely than employees to describe AI as highly useful.
Rather than replacing workers, AI is currently being used more often to improve efficiency and productivity. Among owner-employers, 10 percent reported AI contributed to hiring additional workers, while only 4 percent reported layoffs tied to AI adoption.
What This Means for Your Business
For minority-owned businesses, women-owned businesses, and growing small enterprises, the report offers both encouragement and a challenge.
The encouragement: entrepreneurship remains a viable path to financial security and wealth creation. Business owners consistently report stronger outcomes than many traditional workers.
The challenge: long-term wealth appears most strongly linked to building organizations that can scale beyond the founder. That means developing systems, leveraging technology, creating recurring revenue, and strategically growing teams when the time is right.
In an uncertain economy, entrepreneurs who focus on sustainable growth, operational efficiency, and innovation may be best positioned to capture what researchers call the “ownership advantage.”
For diverse business owners, that advantage isn’t simply about owning a business, it’s about building one that lasts.
