"Why Hire Employees? Earning 14 Billion Alone... Number of Single-Person Companies Doubled in Two Years"
The Rise of Single-Person Companies in the U.S.
AI Lowers the Barriers to Entrepreneurship... Number Doubles in Two Years
Solo Entrepreneurs Earning Over $10 Million Triple in Number
The number of "single-person companies" that operate without employees by leveraging artificial intelligence (AI) is rapidly increasing. There are now frequent cases where AI handles everything from writing emails to coding, sales, and customer support, enabling these companies to achieve millions of dollars in revenue.
The Number of Single Entrepreneurs Earning $1 Million Doubles—Especially in the Tech Sector
The Wall Street Journal (WSJ), citing an analysis by payment company Stripe on July 30 (local time), reported that there are now thousands of single entrepreneurs generating annual revenues of over $1 million (about KRW 1.43 billion), and that this number has doubled between 2023 and 2025. During the same period, the number of solo entrepreneurs earning over $10 million (about KRW 14.3 billion) in annual revenue has nearly tripled.
Van Broca (age 40) founded a company selling AI tools for entrepreneurs in December last year. The company already has over 10,000 paying customers, and this year’s revenue is expected to reach $10 million (about KRW 14.3 billion). Yet, Broca is the only staff member of the company. AI is responsible for most of the work—including email management, coding and bug fixes, responding to customer inquiries, and managing new subscribers.
Ernie Tedeschi, Chief Economist at Stripe, stated, "In the past, it was difficult for people lacking business connections or expertise to turn their ideas into reality, but now AI can play the role of a business partner."
Single-person startups employing AI are particularly prominent in the tech sector. According to Taylor Boley, an economist at the Bank of America Institute, who analyzed U.S. Census Bureau data, new business applications in the information industry have increased by about 45% over the past year, marking the largest growth among all industries. In contrast, the proportion of applicants planning to hire employees saw the largest decline.
AI Usage Fees and Copycat Risks—Potential Labor Market Impact Draws Interest
However, single-person companies based on AI also face cost pressures. Broca experienced losses in some accounts due to operating costs while using Anthropic’s AI model 'Claude' to process customer requests, as AI companies charge fees based on usage. In the end, he switched to a free open-source AI model from China.
As launching a business with AI becomes easier, so does the possibility of having one’s business ideas copied. Because AI enables similar services to be created quickly, concerns about imitation are growing.
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Meanwhile, there are various forecasts about the impact that AI-based single-person companies will have on the labor market. Rembrand Koning, a professor at Harvard Business School, analyzed 50,000 startups and found that AI-centric startups had on average 25% fewer employees than conventional startups. Professor Koning also cited the lengthening job search periods caused by hiring freezes as another reason for the increase in startups.
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