Recent Statistics About Home Based Businesses

Number of Home Business - 36 million to 18 million

• According to IDC, a top national research firm, there are between 34.3 million and 36.6 million home office households in the United States alone.
• Nationwide, the number of home-based businesses may range from 18 million to 38 million, depending on who is doing the counting. U.S. Census figures. Pittsburgh Business Times
• The number of home-based businesses in the United States surpassed 20 million in 2002, and is expected to eclipse 25 million by 2003 according to International Data Corp.
• In fact, the U.S. Bureau of Labor Statistics estimates that there are now more than 18.3 million homebased businesses in the United States. (Entrepreneur Magazine )
• The number of U.S. households that have a home-based business currently exceeds 12 percent." - Office of Advocacy, Small Business Administration

   

• Newsweek magazine reports that by the year 2005, it’s anticipated that 50% of the households in the United States will be involved in a home-based business!

Success Rate of Home Businesses - 70%

• About 70% of home-based businesses will last over a three-year period, compared to 29% of other business ventures, according to the Home-Based Business Institute.

Annual Revenues of the Home Business Industry as a Whole - $427 billion

• Entrepreneur magazine estimates that $427 billion is generated each year by home-based businesses. Pittsburgh Business Times That’s bigger than General Motors, Ford, and Chrysler all put together.

Income Earned by Home Business owners - between $63,000 to over $1 million

• Money magazine, in a 1996 survey, found that 20 percent of home-based businesses had a yearly gross income of $100,000 to $500,000. Pittsburgh Business Times
• 89% with household incomes greater than $80,000 have a home office compared to 14% of those with incomes below $25,000 (Find/SVP).
• A recent IDC survey indicates that the average income for income-generating home office households is $63,000 a year.
• November 2000 report from the SBA's Office of Advocacy shows that in 2000 nearly 20,000 entrepreneurs grossed more than $1 million operating from a home-based environment.

Number of Women Owned Home Based Businesses

• By 1992, women were running 10 million home-based businesses. (U.S. Census Bureau).
• Today women run 70% of home-based business: nearly 17 million. (National Center for Policy Analysis)
• According the the National Foundation of Women Business Owners (NFWBO) there are 2.1 million women business owners with children (1994)

Number of College Graduates with Home Businesses

• 48% of home workers with an income generating home office are college graduates (IDC/LINK)
• 51% of home office users are college graduates with incomes more than $40,000 (IDC/LINK).

Demographic Makeup of Home Based Business Owners

• 48% of home workers with an income generating home office are college graduates (IDC/LINK)
• 22% of home workers are in white-collar positions (IDC/Link).

Percent of Total Workforce that is Home Based Business Owners

• According to recent research released by IDC, http://biz.yahoo.com/prnews/020319/netu035_1.html
  Home offices are projected to grow to 34.3 percent of the workforce by the end of 2002, a growth of .6 percent since 1999.
• The number of U.S. households that have a home-based business currently exceeds 12 percent." - Office of Advocacy, Small Business Administration

   

Number of Jobs Started Daily by Home Based Businesses - 8500 jobs daily

• According to IDC, home-based businesses create an estimated 8,500 new jobs daily.

Number of Telecommuters - 19.6 - 29 million

• Roughly 19.6 million workers telecommuted in 1999. (The International Telework Association and Council)
• There will be almost 29 million U.S. teleworkers by the end of 2003. (The Electronic Commerce and Telework Trends)

Number of Small Businesses that are Home Based - 53%

• According to the Small Business Administration, today more than half (53%) of the small businesses in the U.S. are home-based. In brute numbers, that’s more than 24 million.

Misc Home Based Statistics with Unknown Source

• Every 11 seconds someone starts a home-based business.
• Over the next five years, in the United States alone, the number of people who work out of their homes will increase from a current 30 million to an estimated 90 million by the year 2000! In other words, the number of home based businesses will triple; one out of three Americans will be working out of their home.
• 95% survival rate
• 85% success rate over 3 year term
• 1500 jobs are eliminated daily in U.S.
• Spare time turns into full-time for 50% of home based business owners.
• Female-owned businesses are being created at about twice the rate of male-owned business.
• There will be an estimated 10.7 million self-employed women by 2005, a 77% increase since 1983, compared to a 6% increase in the number of self-employed men.
• Forty to 44 percent of all home-based businesses require less than $5,000 for startup

Reasons Why Dual Income Families Don't Get Ahead Financially

• Taxes – for four months and a week, or 3 hours out of every 8-hour day, you're working for Uncle Sam - (The average American family of four with a median income of $47,012 will pay $10,250 in federal taxes and another $6,110 in state and local taxes for a total "tax liability" of $16,36
• average childcare costs - $7000 per year
• higher standard of living – make more/spend more - Average American spends $1.22 for every dollar they earn
• gasoline - $1200 per year
• spend hundreds on dry cleaning, pantyhose, and biz wardrobe
• eating out for lunches $2000
• auto insurance - $500
• auto maintenance (oil, tires)
• parking $1800 - $5 per day
• costs of raising a child – (quarter million $ to raise child birth-17) ($17,000 for 1st yr)