INTHEBLACK November 2026 - Magazine - Page 41
“One person can only amplify themselves to a degree, but it
is not that scalable. I do not think one-person companies are
a threat to big corporations — not yet. I think the amplification
of human networks in a company is incalculable in terms of
its value. But one person, not so much.”
SUN SUN LIM, SINGAPORE MANAGEMENT UNIVERSITY
UNIQUE RISKS
In China, Jin says, “regulatory sandbox and
incubation programs help mitigate compliance
risks for solo digital ventures”. However, as
for any business, there are plenty of
other traps.
“Operationally, single-person dependency
creates a single point of failure,” Jin says.
“Personal illness, burnout or turnover halts
all workflows, with no internal backup
to sustain client delivery.”
OPCs are also likely to be reliant on
single platforms for particular services,
so changes in pricing or governance of
third-party services may expose those
businesses to greater potential damage.
Cybersecurity and governance risks
are further issues. “Solo operators often
lack dedicated data governance, exposing
client data to leaks, and AI-generated
output may trigger copyright or regulatory
violations,” Jin says. “Without internal
review mechanisms, flawed AI outputs
can cause contractual liabilities and
reputational damage.”
Lim has seen entrepreneurs use AI
systems to form a virtual board that helps
out with audit, investment or fundraising
advice. That can create its own issues.
“Obviously, AI’s guidance could be
quite generic,” she says. “When it comes
to compliance requirements, you have
got to make sure that contextual, localised
knowledge is enriched before you can
trust the guidance it offers.”
Another risk is much more human:
solo entrepreneurship can be lonely.
Lim’s experience overseeing SMU’s
Institute of Innovation and Entrepreneurship
indicates that isolation is a real challenge.
“Nobody will be as energised by the business
as the founder. They have got to always be
the ones keeping the flame alight. Yet there
will be those quiet moments where they
doubt themselves and wonder whether
it is all worth it, and why they did not take
the path more tested,” Lim says. “For that
reason, aside from equipping OPCs with
concrete knowledge around running their
business, we also want to provide them with
support for mental wellbeing, because as
a founder, you can feel quite isolated.”
With AI agents acting as collaborators, if
solo entrepreneurs can navigate through the
lonely and risk-filled landscape of the OPC
world, they may redefine the limits of scale.
“First, we must be wary of survivorship bias,”
Lim says. “Look at one success story on its
own and you will think everyone can do
this, but you are failing to see all of those
who fell by the wayside.
“One person can only amplify themselves
to a degree, but it is not that scalable. I do
not think one-person companies are a threat
to big corporations — not yet. I think the
amplification of human networks in a company
is incalculable in terms of its value. But one
person, not so much.”
The more interesting take on the OPC
situation, Jin says, is that OPCs could alter
our definition of successful business growth.
“Traditional business growth equates scaling
with hiring more employees, expanding
physical premises and raising external
capital to drive larger headcount,” he says.
“For OPCs, growth decouples revenue
expansion from workforce enlargement.”
That has consequences well beyond
entrepreneurship. If a company can increase
revenue and profit substantially while retaining
a workforce of one, business prosperity no
longer automatically produces employment
growth. Headcount is no longer part of the
discussion. Capital requirements shrink.
Cost structures change and intangible
capabilities become increasingly important
to real value.
A successful company does not have
to be a larger one. For some, one person
is enough. ■
READ
an article about
why younger
SMEs are key to
productivity growth
UPSKILL
with CPA Australia’s
Starting a Business
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intheblack.cpaaustralia.com.au
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