Home-Based Business Statistics
Article by Steve Humble
Home-based business is a 7 billion a year industry. That?s more than the pharmaceutical industry, and consumer-goods industry combined! How? Because of the sheer numbers of people in business for themselves who are now working from home.
The extremely low start-up costs, flexible hours, and the internet are fueling the growth of the home business segment. Many people throughout America are choosing to stay home and make a living in order to spend more time with their children, save on daycare costs, and reduce the expenses of traveling back and forth to work.
As of 2005 as many as 150 million people, in North America alone, enjoy the freedom and benefits of owning their own internet business.
Home-based businesses are a rapidly expanding form of business in the United States. A February 2004 study by the Independent Insurance Agents & Brokers indicates that approximately 1 in 10 U.S. households operate some type of full- or part-time home-based business. These types of businesses make up about 53 percent of the small business population and represent a broad cross-section of U.S. industrial sectors. Approximately 60 percent are in the service industries, 16 percent in construction, 14 percent in retail trade, and the remaining are scattered in transportation, communications, wholesale trade, manufacturing, finance, and other industries, according to the Small Business Administration, ?Small Business Research Bulletin: The Small Business Economy 2004.?
?Many entrepreneurs start firms from their homes- and stay there? states a November 2000 report from the SBA Office of Advocacy. ?This year, nearly 20,000 entrepreneurs grossed more than million operating from a home-based environment?. Increasingly, people use their home to earn a primary or secondary income. Home-based businesses represent 52 percent of all small firms and provide 10 percent of the total receipts of the economy, about 4 billion.
Running and owning a home-based business offers new owners a very inexpensive entry point. Forty to 44 percent of all home-based businesses require less than ,000 start up money. Home-based firms tend to stay in the home and less than 5% make the move out of the home.
Over half of home-based businesses survive five years and they are easy to start and re-start the business as needs dictate. The use of technology, the internet, etc.. allows home-based businesses to work in concert with other entities without the need for daily face to face interaction.
A recent IDC survey indicates that the average income for income-generating home offices is ,000 a year. Their findings are published in Home-Based Business: the Hidden Economy, commissioned by the Small Business Administration.
According to The United States Department of Labor:
? About one-third of persons who usually worked at home in May 2004 wereself-employed. Of the 7.0 million self-employed persons who worked athome, two-thirds had a home-based business?that is, a business run fromtheir home and no other location. Nearly half of self-employed personswith a home-based business worked at least 8 hours per week at home, andalmost 22 percent put in 35 hours or more at home. On average, self-employed persons with a home-based business worked 25 hours per week athome. About 45 percent of self-employed persons with home-based businesseswere in management, professional, and related occupations in May 2004.Sixteen percent were employed in sales and related occupations. On anindustry basis, about 1 in 4 self-employed persons with a home-basedbusiness worked in professional and business services. Some 18 percentof persons with a home-based business were employed in the constructionindustry.?
According to IDC, a top national research firm, there are between 34.3 million and 36.6 million home office households in the United States alone. These include income-generating home offices (18.8 million to 20.3 million) with the rest being made up of corporate telecommuter households.
Money magazine, in a 1996 survey, found that 20 percent of home-based businesses had a yearly gross income of 0,000 to 0,000. Pittsburgh Business Times * 89% with household incomes greater than ,000 have a home office compared to 14% of those with incomes below ,000 (Find/SVP).
According to The Success Factory International, ?America is in the midst of an extraordinary workplace transformation? the home-based business phenomenon shows no sign of slowing down.?
?Information technology has made it possible for e-commerce and has enabled small, medium-sized, and home-based businesses to compete more effectively in the global market. E-commerce makes it possible for more people to start their own businesses. The number of U.S. households that have a home-based business currently exceeds 12 percent? ? Office of Advocacy, Small Business Administration.(Information and certain quotes taken from NBBTA Online)
If you would like to look into starting a home-based business for yourself with a low start-up cost and unlimited earning power then please check out: www.money-system4u.com
About the Author
Self-employed / entreprenuer
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