Special Report

HOME BASED BUSINESS FACTS

 

Home-based business is a $427 Billion a year industry . That's more than the pharmaceutical industry, food 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. As of  2005 as many as 150 Million people, in North America alone, enjoy the freedom and benefits of owning their own Internet business.

A recent IDC survey indicates that the average income for income-generating home office households is $63,000 a year.

Are you ready to join the home business revolution and enjoy these benefits? by Joanne H. Pratt Associates

Their findings are published in Home-Based Business: the Hidden Economy, commissioned by the Small Business Administration

"Many entrepreneurs start firms from their homes - and stay there," states a November 2000 report from the SBA's Office of Advocacy. "This year, nearly 20,000 entrepreneurs grossed more than $1 million operating from a home-based environment."

Increasingly, people use their home to earn a primary income, not only a secondary or supplementary income.

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Home-based businesses represent 52 percent of all small firms and provide 10 percent of the total receipts of the economy, about $314 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 $5,000 for startup.

Home-based firms tend to remain in the home-less than 5 percent eventually move out of the home.

Over half of all home-based businesses survive five years-and they are easy to start and restart 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.

The home-based business sector is growing in importance and diversity, and offers opportunities for entrepreneurs and at-home professionals in every demographic and ethnic group.

 

 

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.

Between 1999 and 2004, IDC predicts a 7.4 percent annual growth rate for households with income-generating home offices - almost seven times greater than the 1.1 percent growth rate forecast for all households. The growth rate for corporate telecommuter households is predicted to grow by 4.8 percent per year during the same period.

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 (IT) 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.