The Harsh Reality Behind South Dakota’s Entrepreneurial Spirit
South Dakota is often celebrated for its entrepreneurial spirit, with many workers creating their own businesses and taking on multiple jobs. However, behind this facade lies a harsher truth: many workers are forced to take on multiple jobs because their primary employment doesn’t pay enough to live on.
The Numbers Don’t Lie
According to the U.S. Census Bureau, nonemployer businesses, which are solo operations without paid staff, are booming nationwide. In South Dakota, the rate of workers holding multiple jobs is the highest in the country, with 9.1% of workers holding multiple jobs in 2015. This trend has been accelerating, with nonemployer businesses growing at a rate of 2.7% annually from 2012 to 2023, while traditional employers averaged only 1.1% growth.
The Math Doesn’t Add Up
To match the living wage for South Dakota, the minimum wage would need to rise to $22.50/hour, according to MIT’s Living Wage Calculator. However, the state’s current minimum wage is $11.50/hour, leaving a $11-per-hour gap between survival and reality. This means that many workers are forced to take on multiple jobs just to make ends meet.
The Human Cost
The reality of this situation is that many workers are struggling to make ends meet. Sydney Hansen, a 24-year-old who lost her job at the National Park Service, is now working multiple jobs, including farming and bartending, just to get by. Her story is not unique, and many workers in South Dakota are facing similar struggles.
The National Picture
South Dakota’s struggle is not an isolated incident. Nationwide, many workers are taking on multiple jobs because they need them, not because they want to. Dean Baker, a senior economist at the Center for Economic and Policy Research, notes that some people may have multiple jobs because they need them, while others may have multiple jobs because they’re able to get them.
The Real Success Stories
While many workers are struggling, there are some success stories. David Goodwin, a computer specialist with the South Dakota National Guard, was able to build a career and own rental properties with the help of Job Corps. However, Job Corps is facing elimination under federal budget cuts, which would remove a pathway that helped struggling workers build sustainable careers.
Business Leaders Acknowledge Reality
Even business leaders have recognized the workforce challenges in South Dakota. Shawn Lyons, executive director of the South Dakota Retailers Association, notes that retailers are holding off on new locations because they’re having trouble finding employees. This is a stark contrast to the celebratory tone often used to describe South Dakota’s entrepreneurial spirit.
Conclusion
The truth behind South Dakota’s entrepreneurial spirit is that many workers are creating their own businesses and taking on multiple jobs out of necessity, not choice. The state’s business-friendly policies and low taxes are not enough to mask the fundamental problem: too many jobs pay too little for workers to live on one paycheck. Until this issue is addressed, many workers will continue to struggle to make ends meet, and the state’s entrepreneurial spirit will be nothing more than a facade.
