The Growth of Home-Based Businesses – The Homepreneur

Huge thank you to Gordon Hester for this very informative viewpoint.  It was inevitable that many ‘opportunities’ would come out of the woodwork during this recession.  We tend to get more creative as that survival instinct takes over… CSea

woman working from homeI know that many of my readers have home-based businesses so I wanted to share some information I read last week about this segment of the business world.  Home-based businesses have become a major part of the business landscape and are now being referred to as “Homepreneurs”.  There has always been a perception that home-based businesses are small.  For many they are almost viewed like a hobby vs. a business.  However, the data seems to indicate that home-based businesses are growing and are a big part of the business community.  Today, about 50% of all homepreneurs have employees.  As you can see from the chart below, home-based businesses are often as competitive and successful as non home-based businesses.

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According to the Network Solutions Small Business Success Index (SBSI), their recent survey indicated that home-based businesses are important contributors to employment and the overall U.S. economy.  Here are the basic components of society that are driving the trends.

1.  The lower costs and risk associated with starting a home-based business – As I have noted in other blogs, access to capital is limited.  The businesses that will grow in the New Economy will be those that can be started and managed with very little capital.  Until investors and lenders change their current positions, low initial and fixed costs will continue to be a major tenant of small business opportunities in the future.

2. Demographics and social shifts – Aging baby boomers, women, and Gen Y business owners are all seeing the value of a home-based business as a means to (1) take control of their financial future, (2) provide an income to support their families.  People today are interested in a work/life balance and time flexibility which is something that home based businesses can provide.

3. A lack of corporate jobs – Large companies are battered by the Economic Winter.  Large businesses tend to require access to capital (investors and lenders) which are both on the sidelines these days.  Remember, almost 95% of the S&P 500 companies have debt.  Most large companies are part of the Global Economic landscape.  As much of the global economy struggles, US company sales are compromised by a Global Economy that is going through a massive de-leveraging process (it seems like everyone has too much debt these days).  Even people with good corporate jobs are looking at part-time, home based business as a means for additional income and a future for their family.  Too many have learned the costs of leaving their economic future in the hands of others, and are passionate about changing that reality in the future.

Below are the key findings from the SBSI report.  As you can see, the home-based business model is growing and should continue to grow in the future.

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2 Comments

  1. Sending tons of energy for continued success in improving the lives of others. Just think about all the lives you have touched through others because of your positive energy? Powerful!

  2. Thank you for the information here. It is good to know that I made a good choice when I did to go into business for myself. Right time and right season.

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