A New Kind of Entrepreneur

Since January 1, 2026, 1 Exam Prep has surveyed 2,016 students who purchased a licensing program and completed a one-on-one career coaching session with the company's career guidance counselors.

The results point to a clear pattern: the people entering the skilled trades today are overwhelmingly building toward ownership. Most are not simply looking for a job. They're looking to run a business, whether that means launching one for the first time or expanding one they already have.

This report is based on a defined subset of 1 Exam Prep's student base, not all clients, and reflects an ongoing survey. See Methodology, Section 06, for full detail on population and scope.

Across all 2,016 respondents, more than two out of every three are already self-employed, either launching a new contracting business or adding a license to grow one they already run. The remainder currently work for another contractor, and even within that group, many are using the license as a step toward eventually going out on their own.

1,676 respondents, or 83.1% of everyone surveyed, are pursuing a contractor license for the very first time. But "first-time" doesn't mean "just starting out." Most are already doing the work; the license is catching up to a business that's already underway.

Read together with Section 02, the picture is consistent: across the full 2,016-person sample, most respondents are self-employed or working toward self-employment, and the license itself is often the last formal step in a business that already exists in practice.

Nearly half of respondents are pursuing a general contractor or building license, including residential contractor credentials. That is the broadest path into running a full contracting business, rather than a single trade specialty.

*Includes low-voltage/alarm, glass and glazing, irrigation, solar, marine, flooring, painting, concrete and other niche specialty license categories, each representing a small share of respondents.

The findings reflect a broader shift in what contractors need as they enter the industry. For many aspiring contractors, passing a licensing exam is only the beginning. Once licensed, they may also need to establish a legal business entity, obtain an EIN, set up business banking, secure required bonds and insurance, and complete state-specific licensing and compliance requirements.

1 Exam Prep has expanded its career coaching and onboarding program to help students navigate those steps alongside their exam preparation. It is one-on-one guidance that helps students understand their licensing requirements and identify the business, insurance and compliance steps needed to move from aspiring contractor to operating business owner.

1. 01

   Pass the licensing exam

   State-specific trade and/or business & law exam preparation.

2. 02

   Establish a legal business entity

   LLC, corporation or other structure appropriate to the state and trade.

3. 03

   Obtain an EIN

   Federal tax ID required to operate as a business and hire employees.

4. 04

   Set up business banking

   Separate business accounts to support licensing and bonding requirements.

5. 05

   Secure bonds & insurance

   Required coverage varies by state, license type and project scope.

6. 06

   Complete state compliance requirements

   Registration, continuing education and other state-specific filings.