Johnny Lombino is living his dream: An avid outdoorsman, he turned his passion for paddleboarding into a business that he projects will bring in just under $1 million in revenue this year.

He started SOL Paddle Boards , based in Telluride, Colo., 15 years ago, after a trip to Rio de Janeiro in Brazil. When he broke out a rudimentary inflatable board his friend had given him, it attracted a crowd. “Thousands of people started gathering around me,” he says.

He spied opportunity. He designed his own paddle boards with a retractable fin system that made them easy to navigate rocks in shallow water. Initially, he ordered 20 prototype boards in yellow and green, colors inspired by the Brazilian flag. Having lived in Asia for two years, he had some knowledge of the factory side of the business. He ordered 40 boards, which sold out in a day or two.

Waiting tables at a high-end restaurant to support himself and his family, he spent more than six years building the brand, which now includes about 16 models of boards and kayaks.

He differentiates the boards with double-reinforced construction, distinctive colors like hot pink and teal, and a leopard print, which he sells through about 100 retail locations.

He first broke $1 million in revenue in 2020, and revenue has remained in that range since. He has no full-time employees and depends on a part-time marketing director and a team of contractors, in areas such as design and sales.

The ZenBusiness State of Entrepreneurship Report 2026 shows that many of the people starting one-person businesses are driven by similar passion to Lombino’s, with 23% of respondents saying they wanted to pursue an exciting idea. Another 23% of all respondents and 31.6% of those ages 55 and up said they got started because it was “now or never.”

Nearly half (47%) said they should have started their business years earlier, and 30% said their timing was exactly right. Sixteen percent said it was the best decision they ever made.

“Today’s small business owners are choosing deliberately. They’re self-funding, defining success on their own terms, and increasingly, using AI to close the gap between what they can imagine and what they can actually build,” said Ross Buhrdorf, CEO and co-founder of ZenBusiness, which helps entrepreneurs start, build and grow businesses with AI tools, in the report.

“We’re at an inflection point," he continued. "The barriers that used to keep people on the sidelines–not enough money, not enough expertise, not enough time–are coming down quickly. A first-time entrepreneur today has access to tools that didn’t exist five years ago. The playing field isn’t level yet, but it’s getting there.”

The report surveyed 2,000 aspiring or current entrepreneurs and small business owners between January 2026 and July 2026. Among them, 37% run their businesses solo, and 20% intend to keep it that way. They’re able to keep their teams lean because of AI, with 47% saying AI is doing the work of a co-founder or someone they would have to pay.

Among those surveyed, 91% were first-time business owners, and 71% said they were either actively launching or planning to do so within 12 months. Just 9% were serial entrepreneurs owning multiple businesses. Among men surveyed, 43% currently own a business, compared to 28% of women.

The top niches: construction and home improvement (11%), making and selling goods (11%) and selling online (11%).

Here are some other key findings.

Many are side hustlers. Only 30% were full-timers working 40 to 60 hours a week, and just 12% work more than 60 hours. For 40%, their business is a part-time commitment or side hustle.

They’re self-financing. The top fear among respondents? Running out of money the first year (24%). Almost 70% self-funded the businesses with personal savings. Among Gen Z, the largest group of respondents, 72% had done so. For financial backup, 34% planned to use credit cards and personal loans, while only 16% planned to raise investment capital.

They’re finding ways to make it easier. Thirty-one percent of founders use AI daily for specific tasks. Thirty-eight percent of owners are using three to five tools. They’re spending little or nothing on these tools, with 38% opting for free versions.

They’re realists. Sixty-eight percent of respondents anticipated revenue of less than $100,000 the first year—a range they equated with success.

They don’t have unlimited runway . Among those surveyed, 42% said they needed to turn a profit in the first year or walk away. Just 16% were already profitable the first year. Overall, 15% reported having no financial safety net at all.

Some had few other options. Twelve percent of respondents said they reached a breaking point at a corporate job and 7% were motivated by a layoff or firing.

Some stress came with the freedom. Thirty-four percent of respondents said running their business was stressful but worth it. However, 15% reported increased anxiety or mental health struggles.

As for Lombino, he is glad he dove into building his business. He enjoys talking about paddle boarding with like-minded customers, and has no intentions of delegating his customer service to aI. “If you call, I answer the phone,” he says. “It’s me.”

Meanwhile, he has the freedom to spend time with his family, help the local high school wrestling team and paddle the Dolores and San Miguel rivers when he wants. “When I’m out paddling, it’s definitely a time to be free,” he says.