An article in Businessweek yesterday used a new word referencing the home-based entrepreneur: Homepreneur. What was interesting were the statistics of home-based businesses.
More than half of all US businesses are home-based- 6.6 million.
They employ 1 in 10 private-sector workers. On average they have two employees, including the owners, and together they employ more than 13 million people
Only about 35% have revenue above $125,000. A financial benefit for home-based entrepreneurs is lower operating costs. Profitable home-based ventures retain a greater share of their total receipts as net income: 36%, vs. 21% for non-home-based businesses.
The article predicts that as large companies try to reduce their fixed costs by outsourcing business functions, small home-based enterprises will play an even larger role in the economy. Check out the follow-up article on information for the Homepreneurs at Businessweek.