Tuesday, June 14, 2011

Most Small Businesses Are Home-Based

Among the nation's small businesses, the 52 percent majority operate primarily out of someone's home, according to newly released data from the 2007 Survey of Business Owners.

Yes, the survey is laughably dated, taken just before the Great Recession hit. Nevertheless, it is interesting to note the dominance of home-based businesses in the nation's small business milieu. It explains why the 2009 American Housing Survey found a room used for business in 31 percent of all households in the United States.

Fifty-seven percent of home-based businesses had annual receipts below $25,000. Only 7 percent reported any e-commerce sales.

1 comment:

Carlos said...

I established a home-based business (architecture) after getting laid-off in mid-2009. As my business has continued to expand, I've often thought about renting office space, just to have a bricks-and-mortar presence, but so far it doesn't make sense. I work with a small group of independent consultants who themselves work out of their house, and when given the option of coming to work with me at an office and to become regular employees... they'd rather not. Meetings are typically held at my client's location and that suits them best. Better than bricks-and-mortar presence is an Internet presence (currently being upgraded). To borrow from Descartes, 'I web, therefore I exist'. For the moment I'll stay at home, keep overhead expenses low, pass the savings to my clients and thus remain competitive, and enjoy my pajama commute.

Carlos Ovalle