News
Home-Based Businesses Generate $102 Billion
By Keith Girard
AllBusiness.com
June 1, 2006
Sole proprietors working largely out of their homes are a growing force in the economy, with revenues from these micro-businesses now exceeding $100 billion a year, according to a new study.
The Small Business Administration's Office of Advocacy studied revenues, expenses, and income for both home-based and non-home-based sole proprietors in its first-ever comprehensive look at this small business sector.
"Home-based sole proprietors who take the home-business deduction contribute $102 billion in revenue to the economy. The 10 million 'all other' firms, which appear to be largely home-based [as reported on tax filings], contribute an additional $431 billion," the study noted.
With the number of people working out of their homes increasing dramatically, micro-businesses are beginning to "coalesce into a cohesive economic segment that will greatly empower the entire small business community and the nation's economy," the report states. "But because of their general 'invisibility' [due to lack of a storefront or other facility], this is a vast, largely unserved market, not only for agencies like the U.S. Small Business Administration, but for business-to-business commerce as well."
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