Research based on data from more than 30,000 self-employed individuals across 30 European countries shows that solo self-employment is not a transitional phase but a long-term strategic choice for many specialists. Notably, it is the most experienced and best educated entrepreneurs who are least likely to plan hiring employees.
Solo by choice. A new face of entrepreneurship in Europe
Since the early 2000s, the structure of self-employment in Europe has changed fundamentally. An increasing share of the self-employed now consists of university-educated professionals operating in knowledge-intensive services. In 2022, as many as 70 percent of entrepreneurs in Europe worked without employees. In countries such as Norway, the Czech Republic, and the United Kingdom, this figure exceeded 80 percent.
This shift has sparked a broader economic debate. If the number of highly skilled professionals capable of building firms and creating jobs continues to grow, why does this not translate into higher levels of employment?
Four faces of solo self-employment
The authors of the article Expansion and Job Creation Strategies in Different Solo Self-Employment Segments, published in the International Entrepreneurship and Management Journal, Jerzy Cieślik, Ondřej Dvouletý, and André van Stel, propose a typology of solo self-employed individuals based on two dimensions:
- skill level, classified as high or low according to ISCO-08,
- business maturity, defined as fewer than five years on the market or more than five years.
Combining these criteria allows for the identification of four distinct segments of solo entrepreneurs, each with different growth potential. Particularly noteworthy is the group of highly skilled and business-mature professionals. They possess the experience and competencies that, in theory, are most conducive to job creation. The paradox is that this group is also the least inclined to consider hiring others.
Who hires and who chooses cooperation
The data present a remarkably consistent picture of solo self-employment in Europe. As many as 89.2 percent of the self-employed do not plan to hire employees or engage subcontractors. For the vast majority, the solo model is therefore a deliberate and stable choice rather than a temporary stage on the way to building a larger organization.
Differences between segments are nevertheless clear. The most experienced and best qualified professionals are the least likely to consider hiring, despite having the greatest potential to do so. At the same time, they are the most likely to rely on alternative forms of scaling their activities.
The study shows that mature, highly skilled solo businesses grow through project-based collaboration with other self-employed professionals, outsourcing specific tasks, and operating within networks, clusters, and informal professional communities. These are not strategies chosen instead of growth, but rather different conceptions of what growth should look like. Specialists pursue larger and more complex projects while selecting forms of expansion that preserve autonomy, one of the key motivations for choosing self-employment in the first place.
In practice, this means a shift away from job creation toward relationship building and cooperation. Growth is no longer based on hierarchy and employment, but on flexible, network-based connections among independent experts.
Why specialists avoid hiring
Although highly skilled entrepreneurs might appear to be a natural source of new jobs, the study shows that their decisions are driven by several recurring factors.
1. Autonomy outweighs traditional firm growth For many specialists, freedom to choose projects, independence, and the absence of managerial responsibilities are paramount. Hiring would mean assuming the role of a manager, taking on administrative duties, and bearing responsibility for others. For some, this would represent a return to organizational structures they consciously chose to leave. Avoiding hiring is therefore not a lack of ambition, but a way of protecting values central to their professional identity.
2. Financial risk and demand volatility Irregular workloads, project-based income, and delayed payments are common across many industries. Fixed employment costs are difficult to reconcile with such volatility. Flexible forms of cooperation, including subcontracting and project-based contracts, allow solo businesses to scale without committing to risky fixed costs. For business-mature solo firms, this approach is economically rational.
3. Network-based cooperation outperforms hierarchy In a knowledge-based economy, access to competencies matters more than the number of employees. Networks enable the execution of complex projects, the combination of diverse skills, and faster responses to market change. For many specialists, this model is more effective than traditional organizational structures. As a result, solo businesses increasingly operate as part of broader freelance ecosystems.
Rethinking economic policy. Redefining job creation
The findings pose an uncomfortable question for policymakers. Should the number of newly created jobs still be treated as the primary indicator of healthy entrepreneurship? In an economy where highly skilled professionals increasingly work solo, productivity, innovation, and value creation often emerge outside traditional employment structures.
Employment is no longer the dominant channel of growth. It is being replaced by cooperative networks that enable projects beyond the capacity of individual specialists. This calls for a different understanding of the economic contribution of the self-employed. Public support should not focus exclusively on stimulating employment, but also on creating conditions that facilitate cooperation.
In practical terms, this means developing infrastructure for the self-employed, including collaboration platforms, easier access to shared services such as accounting and legal support, and the strengthening of clusters and professional networks. These mechanisms increasingly function as counterparts to traditional employment policy tools.
The freelancer as a new norm in the knowledge economy
The research by Cieślik, Dvouletý, and van Stel points to a fundamental shift in European entrepreneurship. The solo business model is no longer a sign of a firm that failed to grow, but a legitimate and effective form of organizing work in the knowledge economy. Growth increasingly takes place through flexible networks rather than through hiring.
The contemporary freelancer is not a solitary contractor. Instead, they operate as part of complex project-based structures that function faster, more flexibly, and with greater adaptability than traditional organizations. This model is becoming an increasingly important reference point for understanding the future of work in Europe.
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Media contact: Paweł Siwek Science Communications Officer 📧 [email protected] 📞 +48 668 610 534
