Homepreneurs' Impact on the Economy
A new analysis by Emergent Research, Homepreneurs: A Vital Economic Force, argues that home-based businesses are not only operating successfully, but also making contributions to employment and the economy. The researchers analyzed data from U.S. Census and the Small Business Success Index, along with Small Business Administration research.
While only 35% of home-based businesses generate more than $125,000 in revenue compared to 75% for non-home based businesses, homepreneurs do appear to contribute to the US economy. According to this study, they account for more than half of all U.S. businesses and employ more people than venture-backed companies. Jointly, homepreneurs employ one in 10 private-sector workers, or a total of 13 million people.
The Emergent Research analysis predicts that the number of home-based businesses is likely to increase over the next few years due to advances in technology and converging demographic, social and economic trends (e.g., baby boomers, women, Gen Y and others are increasingly interested in running their own businesses).
For examples and stories about homepreneurs, read this BusinessWeek article. These entrepreneurs are running everything from Web development firms to construction businesses.