Blue Collar Entrepreneurs: Demographics

• According to Business Forward, a premier source for independent business information, advice and news, 8 out of the top 10 highest earning industries for entrepreneurs are from the blue-collar sector, which includes home building/improvement/maintenance (construction, roofing, flooring, painting, heating and air conditioning, etc), auto-repair, landscaping, catering, event planning, and cleaning.

Age

• According to the Annual Survey of Entrepreneurs by the US Census Bureau, 0.4% of US business owners in the home improvement industry (under 23 — Construction 2-digit NAICS Code), such as construction, roofing, flooring, flooring, painting, heating and air conditioning, among others, or about 2,875 blue-collar entrepreneurs, were under 25 years old in 2016; 5.4%, or about 34,718 entrepreneurs, were aged 25-34 years; 17.2% or about 110,240 entrepreneurs, were aged 35-44 years; 29.5%, or about 188,815 entrepreneurs, were aged 45-54 years; 32.7% or about 208,927 entrepreneurs, were aged 55-64 years; and 14.7% or 94,166 entrepreneurs, were aged 65 years or over. The total number in the construction industry in 2016 were 639,740 blue-collar entrepreneurs.

• According to the Annual Survey of Entrepreneurs by the US Census Bureau, for the landscaping services industry (under the 56 — Administrative and support and waste management and remediation services 2-digit NAICS Code), 0.7% of US business owners in the landscaping services industry, or about 2,028 blue-collar entrepreneurs, were under 25 years old in 2016; 6.2%, or about 18,892 entrepreneurs, were aged 25-34 years; 16.9%, or about 51,658 entrepreneurs, were aged 35-44 years; 29.2%, or about 89,170 entrepreneurs, were aged 45-54 years; 30.0%, or about 91,462 entrepreneurs, were aged 55-64 years; and 17.0%, or 51,688 entrepreneurs, were aged 65 years or over. The total number in the landscaping services industry in 2016 were 304,897 blue-collar entrepreneurs.

• According to the Annual Survey of Entrepreneurs by the US Census Bureau, for the automotive repair industry (under the 81 — Other services (except public administration) 2-digit NAICS Code), 0.5% of US business owners in the landscaping services industry, or about 1,887 blue-collar entrepreneurs, were under 25 years old in 2016; 6.1%, or about 21,664 entrepreneurs, were aged 25-34 years; 17.0%, or about 60,055 entrepreneurs, were aged 35-44 years; 29.6%, or about 104,378 entrepreneurs, were aged 45-54 years; 30.9%, or about 108,818 entrepreneurs, were aged 55-64 years; and 15.8%, or 55,574 entrepreneurs, were aged 65 years or over. The total number in the automotive repair industry in 2016 were 352,378 blue-collar entrepreneurs.

• The overall average age demographics of blue-collar entrepreneurs in the US is 0.52% under 25 years old, 5.8% aged 25-34 years, 17.11% aged 35-44 years, 29.48% aged 45-54 years old, 31.55% aged 55-64 years, and 15.53% aged 65 years or over. (see calculations for industry proxy)

Gender

• According to the Annual Survey of Entrepreneurs by the US Census Bureau, there were about 133,643 female (20.89%) and 506,096 male (79.11%) blue-collar entrepreneurs in the US home improvement industry (under 23 — Construction 2-digit NAICS Code) in 2016.

• According to the Annual Survey of Entrepreneurs by the US Census Bureau, there were about 95,959 female (31.47%) and 208,938 male (68.53%) blue-collar entrepreneurs in the US landscaping services industry (under the 56 — Administrative and support and waste management and remediation services 2-digit NAICS Code) in 2016.

• According to the Annual Survey of Entrepreneurs by the US Census Bureau, there were about 130,864 female (37.14%) and 221,514 male (62.86%) blue-collar entrepreneurs in the US automotive repair industry (under the 81 — Other services, except public administration, 2-digit NAICS Code) in 2016.

• The overall gender demographics of the blue-collar sector entrepreneurs in the US consists of 27.79% female and 72.21% male blue-collar entrepreneurs. (see calculations for industry proxy)

Income

• According to the Invoice2Go report, the top 8 out of 10 highest-earning industries for small business owners in the US, according to average monthly amount invoiced, belong the blue-collar sector, which includes construction ($18,788), roofing ($16,942), flooring ($10,602), painting ($9,486), heating & air conditioning ($8,971), carpentry ($8,950), plumbing ($8,639) and electrical ($7,490).

• The average monthly income of blue-collar entrepreneurs in the US is estimated to be $11,233.50/month, while their estimated annual income is worth $134,802. (see calculations for industry proxy)

General Marital Status Finding:

• According to the Demographic Characteristics of Business Owners and Employees report by the US Small Business Administration, 66.3% of business entrepreneurs, in general, are married while 33.7% are not married.

Research Strategy:

BLUE-COLLAR PSYCHOGRAPHICS

• Blue-collar jobs are currently looked down on by the majority (only 30% of parents would encourage their children to go into manufacturing, for example), resulting in a 50-year-low labor participation rate and 7.3 million unfilled jobs.
• And yet, blue-collar workers "may be one of the most optimistic groups in the country today," with 85% seeing their lives "heading in the right direction" and 80% feeling optimistic about the future.
•  49% work in a skilled trade, while 44% work in general labor.
• The average has been working for 22 years and in his current job for 10 years.
• Blue-collar "hourly" employees are constantly looking for better opportunities:
•  26% are actively seeking new jobs and another 30% would be willing to consider a better job if offered.
•  95% are willing to spend personal time to learn a new skill and almost one-third are willing to invest 5 or more hours a week.
•  90% are interested in apprenticeships.

• There is a "grass is always greener" effect when it comes to college:
• While over half of those without a college education wish that they had gotten a Bachelor's degree,
• 46% of blue-collar workers with a college degree wish they had "attended community college, vocational school or had gone straight into the workforce instead."
• This is significantly higher than white-collar college graduates (31%).

• While most support labor unions (73%), few are members (13%).
• Blue-collar and white-collar workers are otherwise very similar, e.g., in terms of job satisfaction, viewing themselves as middle-class, political affiliation, and desire to support their family.
• However, they tend to be locally focused, with 69% believing their communities are moving in the right direction, but only 58% saying the same for their states and 51% their country.

THE ENTREPRENEURS

• As noted by Forbes, blue-collar entrepreneurs carry over many positive traits from their work, including honesty, a strong work ethic, "a near-unwavering moral code," and strong ties to their community.
• Those who go from working in the trenches to building their own businesses have a strong belief in themselves.
• This makes them strong leaders — in fact, examples that white-collar entrepreneurs would do well to emulate.
• In fact, Hedge CEO and Founder Bob Rutherford, who runs a white-collar business but grew up in a working-class household, cites his blue-collar roots as one of the major reasons for his success.
• Successful blue-collar entrepreneurs are flexible and willing to pivot to find new opportunities:
• For example, the CEO and Founder of wholesale diesel and gasoline company Hightowers Petroleum, Steve Hightowers, went from working in his parents' janitorial company to trying to grow a nascent construction company to discovering an open door in oil and transport.
• Likewise, the Alaskan "mammoth hunter" Bruce Schindler went from struggling to make a profit in his ivory-carving business to making millions excavating mammoth ivory for himself.

• Others learned how to take a personal interest and go into business for themselves:
•  Steven Humble took a childhood interest in secret doors and created a business that creates custom secret doors and rooms for private residences.
•  Mike Vetter took an interest in and talent for rebuilding cars and turned it into a multi-million dollar "custom cars" business.

• Two general motivations seem to drive most to make the leap from drawing a paycheck to working for themselves:
• First, the freedom to do what they love on their own terms.
• Second, being able to better provide for themselves and their family by either exploiting a unique niche or scaling up by employing others.

• While needs likely depend on their particular business and industry, the need most likely shared by all blue-collar entrepreneurs (at least those wishing to scale up) is to find qualified workers.

MEDIA HABITS AND HOBBIES

• In terms of both reach (whether the ads are seen) and receptivity, websites are the most effective online channel (~75%/~50%, respectively), but are beaten in both categories by radio, magazines, and especially television.

• When they wake up (79%), at which time 50% read email newsletters.
• Morning commute (45%), during which 37% listen to the radio and 21% listen to podcasts.
• Arrive at the office (41%), when 35% read news websites.
• During the workday (54%), during which 25% use news apps and 29% read email newsletters.
• Evening commute (39%), during which radio and podcasts spike again and 17% check social media.
• Nighttime (64%), during which 37% check social media and 38% watch TV.
• Weekends (100%), during which they consume media through a mix of the above sources.

•   37% read a news website
•   37% view a news app
•  31% go to social media
•   25% read a news content aggregator
•  50% read email newsletters

•   70% of purchase journeys are launched by the executive conducting their own online searches rather than by recommendations.
•  Only 10% of new products or services are introduced to executives through ads and only 12% through social media.
• Based on the above data, we triangulate that the best time to reach blue-collar entrepreneur via online or social media ads would be the early morning (pre-commute), evenings, and weekends.

• Travel (61%)
• Fashion, Beauty (43%)
• Lifestyle (47%)
• Fitness, Health (39%)
• Cuisine (37%)
• Shelter (37%)
• Science, Technology (39%)
• Entertainment (33%)
• Regional (34%)
• Sports (30%)
• Outdoor (26%)

ADDITIONAL READING

• CNBC's "Blue Collar Millionaires" features interviews with the eponymous entrepreneurs. While attempting to view and review multiple episodes is outside the scope of a single Wonder request (though some insightful summaries are cited above), viewing the show may provide additional insights into the backgrounds and personalities who became successful entrepreneurs.

RESEARCH STRATEGY

OVERVIEW OF BLUE-COLLAR OWNED HOME SERVICES BUSINESSES

• Based on an analysis of three companies, home services businesses founded by blue-collar entrepreneurs are most likely related to their past jobs.
• For Lori K Bath founder, Ron, he loves the bathroom business because he loves seeing satisfied customers, and he ventured into a business to pursue his "American dream."
• Steven Humble felt frustrated by what he was earning and decided to do more with his mechanical engineering skills so he built Creative Homes Engineering.
• Ron Holt, the founder of Two Maids & A Mop, became an entrepreneur because he felt that the corporate world was uninspiring.

SAMPLE COMPANIES

#1: Lori K Bath

• The company was founded by Dan O'Callaghan & Ron Knoche.
• Since 1991, Ron has been in the home improvement industry, enjoying great successes in all facets of the business. He has been a "laborer, installer, lead carpenter, in home sales consultations, sales team management, production manager, and general manager."
• Dan O'Callaghan, a blue-collar guy, has been an entrepreneur since 1991.
• Services: Bath remodeling 
• Founding year: 2015
• Employees: 10 
• Sales: $440,000 

#2: Creative Home Engineering LLC

• The company was founded by Steven Humble.
• Steven Humble used to design medical devices. However, he left his job to put his mechanical engineering skills into better use due to his use frustrated with what he was earning.
• However, according to him, "money really isn't the driving force," as he's rather driven by the opportunity to make the best product that he can make.
• In 2016, his company made approximately $1.2 million in revenue.
• Employees: 10 
• Founding Year: 2003 

#3: Two Maids & A Mop

• The business was founded by Ron Holt.
• He used to be a chemist for a particle analysis laboratory.
• Ron Holt did a variety of hands-on jobs, including scooping chemicals from tractor-trailers and working on a paper mill floor.
• Estimated Revenue: $7,200,000 annually or $600,000 per month 
• Employees: More than 500 
• Founding Year: 2003 

HOME SERVICES INDUSTRY GROWTH

• According to Guidant Financial and LendingClub's State of Small Business survey, home services is one of the top five small business industries with a 6% share.
•  Growth drivers for the US home services market include, the industry as a source of inspiration and ideas, augmented marketing by home services platforms, growing number of service providers, increasing GNI per capita in the US, increasing site visitors, enhanced home-booking platform features, instant book/instant connect options, smartphone penetration and growing M-commerce platform, growing millennial population and homeowners, and increasing urbanization and hectic lifestyles.
• IAC (Home Adviser & Angie's List), Yelp Inc., Amazon (Amazon Home Service) and INGKA Holding BV (TaskRabbit) are some key players in the US home services market.
• The home services industry is growing mainly due to the online and mobile booking services having an estimated $400 billion market from major companies such as Google and Amazon.
• Residential work gets the 65% of carpet sales, with commercial making up the balance.
• In 2018, the global home services market was valued at $281.65 billion, with an expected growth of 18.91% between 2019 and 2026 to reach $1.13 trillion by 2026.

RESEARCH STRATEGY