An owner-operator is a

small business Small businesses are types of corporations, partnerships, or sole proprietorships which have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able to a ...

microbusiness A micro-enterprise (or microenterprise) is generally defined as a small business employing nine people or fewer, and having a balance sheet or turnover less than a certain amount (e.g. €2 million or PhP 3 million). The terms microenterprise and ...

owner who also runs the day-to-day operations of the company. Owner-operators are found in many

business models A business model describes how an organization creates, delivers, and captures value,''Business Model Generation'', Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-published, 2010 in economic, social ...

and

franchising Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property, use of its busine ...

companies in many different industries like

restaurant chains A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate the retail and dining markets and many service categories, in many pa ...

health care Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profes ...

logistics Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...

maintenance, repair, and operations The technical meaning of maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure, and supporting utilities in industrial, business, and residential installa ...

Trucking

In the United States and Canada, the term typically refers to

independent contractors Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...

who hire out and drive their own

semi-trailer trucks A semi-trailer truck, also known as a semitruck, (or semi, eighteen-wheeler, big rig, tractor-trailer or, by synecdoche, a semitrailer) is the combination of a tractor unit and one or more semi-trailers to carry freight. A semi-trailer a ...

. In trucking, an owner-operator is a self-employed commercial

truck driver A truck driver (commonly referred to as a trucker, teamster, or driver in the United States and Canada; a truckie in Australia and New Zealand; a HGV driver in the United Kingdom, Ireland and the European Union, a lorry driver, or driver i ...

or a small business that operates trucks for transporting

goods In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not tr ...

over highways for its customers. Most owner-operators become drivers for trucking companies first to gain experience and determine whether the career is for them. The

Motor Carrier Act of 1980 The Motor Carrier Regulatory Reform and Modernization Act, more commonly known as the Motor Carrier Act of 1980 (MCA) is a United States federal law which deregulated the trucking industry. Background Motor carrier deregulation was a part of a s ...

deregulated the industry and made it easier for manufacturers to set their own prices on shipping goods, and also allowed owner-operators to be more successful by taking some of the control out of the hands of the larger motor carriers. It was now possible to find a carrier willing to haul goods for what customers wanted to pay rather than what the larger carriers' rates were. * An owner-operator is free to either haul free-lance (non-committal to any one firm or product) or enter into a lease agreement to dedicate their equipment to one customer or product * The owner-operator typically has to pay higher rates on

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

due to smaller size than most larger companies, meaning they have to charge more to balance the cost * There are many things to consider before becoming an owner-operator, including business setup,

accounting Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "language ...

, type of vehicle, and licenses

References

External links

Owner-Operator Independent Drivers Association
Business models {{Business-stub