{{Short description|Business owner also running daily activities}} An '''owner-operator''' is an owner of a [[small business]] or [[microbusiness]] who also runs the day-to-day operations of the company. The owner-operator [[business model]] is prevalent in multiple industries, including trucking and [[franchising]] across [[restaurant chains]], [[health care]], [[logistics]], [[maintenance, repair, and operations]].
== Trucking == In the [[trucking industry in the United States]] and Canada, the term "owner-operator" typically refers to [[independent contractors]] who provide transportation services using their own [[semi-trailer trucks]]. The owner-operator is a self-employed commercial [[truck driver]] or a small business that operates trucks for transporting [[Good (economics)|goods]] over highways for its customers.<ref>{{Cite web|url=https://www.ooida.com/WhoWeAre/AboutUs/timeline.asp|title=OOIDA Timeline, Owner-Operator Independent Drivers Association|website=Owner Operator Independent Drivers Association, Trucking Association|access-date=2019-06-04}}</ref> 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]] 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 [[Common carrier|carriers]].<ref>[http://www.econlib.org/library/Enc/TruckingDeregulation.html Trucking Deregulation, by Thomas Gale Moore: The Concise Encyclopedia of Economics: Library of Economics and Liberty<!-- Bot generated title -->]</ref> 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 freelance (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]] 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]], type of vehicle, and licenses<ref>{{Cite web|url=http://www.returnloads.net/becoming-an-owner-driver/|title=A Guide To Becoming An Owner Driver - Return Loads|website=www.returnloads.net|access-date=2019-06-04}}</ref>
==Franchising== The owner-operator model is common in [[franchising]], in which franchisee is heavily involved in the daily operations of the business. This model is often used when in business categories that rely on active daily leadership, like children's education. <ref>{{cite web| url = https://www.franchiseba.com/different-franchise-models-owner-operator-vs-executive/|title = Owner-Operator vs. Executive Franchise Models: Understanding Different Franchise Models }}</ref>
==References== {{Reflist}}
==External links== * [https://www.ooida.com Owner-Operator Independent Drivers Association]
{{DEFAULTSORT:Owner-Operator}} [[Category:Business models]]
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