Over the past several years, the American labor market has undergone one of the most dramatic transitions in recent history. While headlines often focus on layoffs, hiring slowdowns, wage stagnation, and shrinking opportunities for young workers, a deeper story has been emerging underneath the surface—one that has profound implications for commercial finance consultants and factoring professionals.
New data from Revelio Labs, a labor-market analytics firm that analyzes millions of online professional profiles, including those on LinkedIn, reveals a striking trend: as the job market cools, entrepreneurship surges. And not just among mid-career professionals—this new wave of entrepreneurship is increasingly younger, more diverse, and more willing to strike out independently than any generation before it.
For factoring consultants, the implications of this trend are enormous.
The Revelio Labs Findings: A Workforce Shifting Toward Independence
Revelio Labs’ analysis of millions of LinkedIn profiles from 2019 through 2024 confirms a clear pattern: whenever traditional hiring slows, the number of individuals transitioning into entrepreneurship rises sharply. In fact:
-
The share of job-switchers who became entrepreneurs nearly doubled between 2022 and 2024.
-
New entrepreneurs are entering the marketplace at younger ages than in prior decades.
-
Many entrepreneurs are coming from fields where wages have stagnated or where opportunities have tightened—technology, media, finance, and professional services among them.
-
Entrepreneurship is increasingly treated not as a lifelong calling, but as a practical response to economic uncertainty and shrinking job security.
This is the new entrepreneurial era—born not from passion alone, but from necessity, ambition, and the desire for greater financial control.
The End of the Paycheck-to-Paycheck Mentality
LinkedIn’s workforce mobility data reinforces the same conclusion: millions of workers are actively seeking alternatives to traditional employment because the old model no longer works. Inflation, wage stagnation, rising living costs, and unstable job cycles have pushed more and more professionals to ask a simple question:
“How do I build something of my own?”
For many, the answer is self-employment—consulting, freelancing, launching a product, or starting a small business. But here’s the challenge:
New entrepreneurs start companies without steady income, without savings, and without access to bank financing.
The desire to escape paycheck-to-paycheck living is exactly what pushes them into entrepreneurship—yet it’s also what makes their early growth financially fragile.
This is where the factoring industry becomes not just relevant, but critical.
Why Many New Entrepreneurs Are Turning Toward Factoring Consulting as a Career
It’s worth noting that a portion of these new entrepreneurs are gravitating toward factoring brokering itself. This shift isn’t surprising:
-
It’s low-cost to start.
-
No licensing or formal degree is required.
-
Income is based on building multiple streams—each client generating monthly commissions.
-
It offers flexibility, remote work, and scalability.
-
Brokers can earn a strong residual income once accounts start funding.
Revelio’s data highlights one of the biggest motivators: people want control over their income, not dependence on an employer. The factoring consultant model delivers exactly that.
However, while some new entrepreneurs become consultants, many more are building businesses that require the types of financing that factoring provides.
The Bigger Picture: Entrepreneurs Need Working Capital—Fast
The majority of new entrepreneurs don’t have:
-
A credit history strong enough for bank lending
-
Sufficient savings to self-fund
-
Venture capital backing
-
Collateral for lines of credit
What they do have is customers and invoices—often before they have cash.
This creates the classic small-business dilemma:
Sales are strong. Cash flow is weak. Growth stalls.
That’s why the surge in entrepreneurship is simultaneously creating a surge in demand for alternative commercial finance solutions, especially:
-
Invoice Factoring
-
Spot Factoring
-
Purchase Order Finance
-
Contract Financing
-
Asset-Based Lines for startups
These tools give entrepreneurs what traditional banks cannot:
Working capital based on their customers—not their credit.
When you’re a new business owner chasing growth, the ability to turn unpaid invoices into cash can mean the difference between survival and collapse.
Why This Trend Is a Golden Opportunity for Factoring Brokers
The entrepreneurial boom has created the most fertile environment for commercial finance consultants in over a decade. Consider:
-
Every new entrepreneur is a potential client.
-
Every new B2B company (staffing, trucking, logistics, manufacturing, service trades, contractors) is a prime factoring candidate.
-
Many new entrepreneurs learn quickly that business growth requires outside financing—often immediately.
-
They are more open than ever to alternative financing because they have limited options.
Put simply: the rise in entrepreneurship directly increases the demand for factoring professionals.
This is why 2024–2026 may become a generational opportunity for brokers who position themselves correctly.
The Message to Brokers: Your Market Is Expanding—Rapidly
For new and established factoring consultants, here is the key takeaway:
The entrepreneurial explosion is not a trend. It is a structural shift.
Workers are no longer waiting for traditional employers to provide stability—they are building it themselves. And as they do, they need financing solutions that match the pace and volatility of startup growth.
Banks aren’t built for this.
Factoring is.
This is the moment for factoring consultants to:
-
Increase outreach
-
Strengthen referral networks
-
Position themselves as cash-flow experts for new entrepreneurs
-
Educate small businesses on working capital strategies
-
Build deeper relationships with local business communities
-
Publish content that speaks directly to new business owners
Because every time someone leaves the paycheck-to-paycheck grind and becomes an entrepreneur, a factoring broker’s potential client list grows.
The Future Belongs to Those Who Build—and Those Who Finance Builders
Revelio Labs and LinkedIn have shown us what the labor market is becoming:
A marketplace of independent creators, contractors, startup operators, and new entrepreneurs who prefer risk over stagnation and autonomy over job security.
These individuals are the lifeblood of America’s next economic cycle.
But they cannot build without capital.
That’s why factoring brokers—commercial finance consultants—now sit at the intersection of entrepreneurship and opportunity. The more people who start businesses, the more vital your services become.
And for brokers who understand this shift, the next few years may be the most lucrative in the industry’s histor