There are over 33.2 million small businesses in the United States, and that number is growing every day as every 12 seconds, new home-based businesses start. As more and more people become interested in starting their own businesses, home-based businesses are booming.
But what is the true state of a home-based business?
Let’s review some of the most important home based business statistics that you need to know to succeed or fail in your home-based business.
Home Based Business Statistics: Key Numbers
- 51.6% of all US small businesses are home based businesses.
- According to the SBA and reported by NYSED, only 20% of home-based businesses fail.
- With 33.2 million small businesses, approximately 15 million of which are home-based.
- 69 percent of startups are home-based businesses.
- Every 12 seconds, a new home-based business starts.
- 59% of home-based businesses are still run from home 3 years later.
- 60.1% of home-based businesses are non-employers.
- Home-based businesses generate $427 billion in revenue each year.
- 44% of home-based businesses are launched with less than $5,000.
- 70% of home-based businesses succeed in three years, compared to 30% of traditional businesses.
Home based businesses are on trend and show no signs of slowing. According to the SBA faqs report, 50% percent of all US small businesses are home based businesses.
It provides the opportunity to do something you love, work from home, and set your own hours. While working for someone else is a great way to make money, starting a home business can bring greater wealth creation.
What is Home Based Business?
A home based business is a business that is conducted from the home of an individual. The operative word being “home.” The home based business can be run from your home or you can rent a place to work from that is also a place where you live.
It can be run in conjunction with a brick and mortar business. There are different options for doing this as well as many advantages.
What percentage of small businesses are home-based?
The home based business ownership rate is one of the most interesting statistics to come out of this report, as it shows how a greater percentage of small businesses utilize the home based business model.
This statistic is indicative of just how popular home based businesses are in the US. As more people realize the benefits that come along with a home based business, you can expect the number of home based businesses to continue to grow as we have seen an increase in technology that makes it easier to run a business from home.
How many small businesses are home-based?
So what does the future hold for this industry? Well, based on the growth of the small business industry in general, it will only continue to grow. The changing nature of home offices, as well as advances in technology have made running a small business from your home quite easy and convenient.
It has low capital requirements and a low risk factor due to the small start-ups that can be achieved by doing work in our spare time. Most home based businesses are very lucrative ventures, in fact you’ll probably never find an industry with a higher rate of success than one created from scratch in your home.
Small business Startup Status
The statistics are positive, indicating a significant increase in the growth of home-based businesses. Anyone may be a great entrepreneur if they have the necessary tools and resources at their disposal.
It doesn’t matter where they do business; they can even work from home while wearing their pajamas!
Frequency of New Home-based business
More and more people are choosing to start their own home business. Statistics have shown that five out of every ten businesses in the United States is a home based business – approximately 15 million people are home based businesses.
Home-based business startup cost
Home businesses have a low launch cost of approximately $3000 dollars, making them an attractive option for many people. Starting a home-based business is a terrific way to supplement your income, and starting a business today is easier than it has ever been.
With the advent of the Internet, it has been significantly easier to start a home business and operate it on your own terms. There’s no need to keep track of when and where you’re working, how many hours you’ve put in, or if you’ve done a good job or not.
Percent of Home-based business status after 3 years
When you consider the facts on home-based businesses listed above, it’s simple to see why starting and running a business from home can be so gratifying. In this day and age, many individuals are launching their own businesses, and whether you’re a stay-at-home mom looking to supplement your family’s income or an entrepreneur looking to build the next big thing, there are numerous options that allow you to work from almost anywhere.
Number of nonemployer Home-based Business
In today’s economy, home based businesses are keeping people employed and able to bring in a steady income. Nearly 60% of the 2.6 billion dollar home based business market goes to these non-employer businesses.
It’s reassuring knowing that some of us can take care of our family while working from our homes as opposed to being at the mercy of someone else’s schedule.
Home-Based business annual revenue
The home-based business industry is estimated to be making $427 billion annually. There will never be a limit to the ways in which people can work from home.
The economic and social advantages of our home-based businesses are remarkable, and with proper investment, this number will continue to climb.
Startup cost under $5000
The research says 44% of home-based enterprises start for under $5,000. And the winners aren’t only in IT. There’s the cookie shop, the dog groomer, and the candle maker (you know who you are!). Let your startup idea fly!
Remember that owning a business comes with risks, but it also comes with perks like flexibility, independence, and profit… plus it’s a greater return on investment than a 401k.
Home-based business success rate vs regular business
Home-based businesses absolutely can be successful, depending on what they consist of, who is running them and the amount of time they are willing to put in.
I continually experience the fact that working from home and having my own business is far more rewarding than my career ever was! I am going to say: If you love it – do it!
Home-based business sales
Home-based enterprises are becoming increasingly popular, and their numbers have been continuously increasing over the past few years. It should be noted that there is still plenty of space for expansion for these businesses.
A greater level of support for home-based business owners, such as the provision of interest-free loans or insurance policies, has the potential to encourage the expansion and retention of successful home-based firms.
Home-based business insurance premium
The average monthly premium price is $59, although the amount varies according to the size of your company’s operations. Even more significant, home-based workers on average pay significantly less for their work-related health insurance coverage when compared to their employed counterparts.
This can be attributed to a variety of variables, including a bigger group size and low turnover, both of which result in higher premiums. This could be an additional strong incentive for companies who now provide health insurance to their employees to expand that coverage to their home-based employees as well.
Home-based business deduction statistics
According to the IRS’s Statistics of Income, businesses that conduct work from their homes totaled nearly $9.5 billion in 2011. The interesting part is that the expenses claimed in these returns are much higher than the sales receipts reported by those businesses totaling about $4.8 billion for this time period.
This means that home businesses are spending money on items like computers, office equipment and other business related expenditures.
A home-based business gives you the freedom to work where and when you want. Is running a home-based business the right choice for you?
There are a variety of statistics that can be utilized to address this issue. If you want to start a home-based business, here are some data on the most popular ones.
People are starting home businesses more and more in today’s world. I hope this post has given you a better idea of how this is going to happen. It doesn’t matter whether you need a new job or want to start a business as a hobby.
There are numerous businesses that you can start from home. If you wish to stay at home and help your family, starting your own business could be a smart option.
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