Jan 3, 2010

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. According to this study, home based businesses account for more than half of all US 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.

In a recent article in Business Week, it was noted that there are a few trends driving the growth of sophisticated home businesses. First, technology has made it easier to start and run a business from anywhere. But just as important, there has been a change of consciousness in the business world to recognize home-based enterprises as legitimate.

The most obvious financial benefit for home-based entrepreneurs is lower operating costs. While home businesses on average had lower sales and net profits than companies in commercial spaces, profitable home based ventures retained a greater share of their net income.

Posted in: Business