Entrepreneurs of the Trucking Industry

Importance of the Independent Entrepreneurs of the Trucking Industry

Importance of the Independent Entrepreneurs of the Trucking Industry

A large number of legal, authoritarian and legislative processes are underway for eliminating independent entrepreneurs in the trucking industry. Many industries that run the American economy are targeted by such measures, but the trucking industry especially receives special attention when it comes to independent business operators who want to pursue the American dream.

Owner operators or independent contractors have played a crucial role in this industry for a long time – since the 30s. It is worth noting that around half a million truck drivers in the country are owner operators. Carriers have especially found owner operators to be beneficial when it comes to saving capital costs and providing flexibility for meeting the demand fluctuations.

These entrepreneurs are driven by higher levels of motivation, profits, and meeting customer satisfaction for matching the demands of carriers. In fact, many of the largest truckers in the country including Schneider National, C.R. England and Werner Enterprises began their business as single-truck entrepreneurs.

Despite the importance and quality of owner operators, there are constant efforts for eliminating them from the industry. There is a misconception among state authorities that the concept of owner operators is a method for avoiding tax. However, the facts tell an entirely different story.

A study conducted by the University of Arkansas in 2011 found that more than 93 percent of such businesses in the trucking industry hired the services of a tax preparer and most of them field their quarterly taxes. The study also revealed that $6,300 was the total of the annual median federal taxes paid by the owner operators.

Another study that supported the owner contractors was conducted by Navigant Economics. It was claimed that while 99 percent of W-2 income has been submitted by employees, almost 97 percent of 1099 income has been submitted by such independent contractors. All of this data point towards the American entrepreneurial spirit that runs this segment of the trucking industry.