1 March 2024

Did you know that 69 percent of entrepreneurs in the United States start their businesses right from the comfort of their own homes?

By Ronald Smith

Starting a business is a thrilling adventure that many people embark on, and it’s fascinating to discover that a significant number of these entrepreneurs choose to kickstart their ventures from their own houses. This means that instead of renting fancy office spaces or storefronts, they choose to take advantage of the familiar surroundings and convenience of their home.

I find this statistic quite astounding! It shows just how versatile and flexible the world of entrepreneurship can be. It also highlights the power of technology and the internet, which enable aspiring business owners to connect and engage with customers, suppliers, and employees from anywhere in the world.

When you think about it, starting a business from home has many advantages. One of the most obvious benefits is the cost savings. By eliminating the need for a separate workspace, entrepreneurs can save a significant amount of money on rent and other associated expenses. This allows them to allocate these resources to other important aspects of their business, such as marketing, product development, or hiring talented individuals.

Furthermore, working from home provides entrepreneurs with a great deal of flexibility. They can set their own schedules, allowing them to balance their professional and personal lives more effectively. This means they can spend more time with their families, pursue hobbies, or simply enjoy the comfort of working in an environment they know well.

Of course, there are challenges and considerations that come with running a business from home. It requires discipline, creativity, and resourcefulness to separate work life from personal life effectively. Distractions can easily arise, and it can be tempting to blur the boundaries between work and leisure time. However, with the right mindset and organizational skills, these challenges can be overcome.

In conclusion, the fact that 69 percent of entrepreneurs choose to start their businesses at home showcases the ever-evolving nature of the entrepreneurial landscape. It demonstrates the power of technology, the benefits of flexibility, and the incredible possibilities that lie within the entrepreneurial spirit. So, if you have a brilliant idea and the drive to succeed, why not consider starting your own business right from the comfort of your own home? The potential for success is just waiting for you to seize it!

Did you know that 69 percent of entrepreneurs in the United States start their businesses right from the comfort of their own homes?

If you’re running your business from home, you’re not alone. Most entrepreneurs in the U.S. do the same thing.

And it’s not just in the beginning stages of the business either. According to a report from 2012, more than half of entrepreneurs in the U.S. continue to operate their businesses from home even after they’ve been established and running. This study looked at how many entrepreneurs were active in different industries in the U.S.

But it’s a mistake to think that most of these business owners never grow their businesses beyond just themselves. The study’s authors found something different:

When I think of home-based businesses, I imagine someone working from their house or garage, maybe with a few partners. It’s interesting to learn that only a quarter of the entrepreneurs surveyed said they didn’t have any employees working for them. Considering how many people run businesses from home (two-thirds of TEA), it seems like a lot of them actually do have employees.

I find it fascinating how the statement about home-based businesses having employees can create a sense of awe. But really, it shouldn’t surprise us that so many entrepreneurs are running businesses from their homes. Nowadays, a lot of work is done virtually. In knowledge-based businesses, the technology workers use, like computers, mobile devices, and Internet connections, is actually more important than their physical workspace.

Let me share some more interesting facts from this study about home-based businesses and entrepreneurship:

Starting a business doesn’t have to break the bank — Based on a study, the average cost to start a business is $15,000. On one hand, that may seem like a lot of money. But on the other hand, it’s an amount that many people in the United States can save or get help from their loved ones. To keep costs down, many entrepreneurs choose to start their businesses from home.

Most startups are self-funded or rely on support from family and friends — The majority of startup funds (82%) come from the entrepreneur themselves or from their close circle of family and friends.

Venture capital is hard to come by – Did you know that out of every 1,000 entrepreneurs in the United States, only one receives venture capital funding? That means it’s really rare! So instead of spending your time searching for VCs, it’s better to focus on growing your own business.

Entrepreneurship is not just for certain age groups — People of all ages can be entrepreneurs! In fact, around 15% to 20% of adults in every age group are entrepreneurs.

But there are some age patterns in entrepreneurship — Young entrepreneurs are most likely to want to start their own business. About 30.5% of them have the intention to start a business. However, the intention to start a business tends to drop during the middle of their careers. But guess what? The desire to start a business starts rising again once they hit 65 years old and beyond!

Did you know that women entrepreneurs are more likely to have businesses based in their homes? Out of all the startup businesses that operate from the owner’s home, 72% are run by women, while only 61% are operated by men. And even among established businesses that have been around for more than three and a half years, 68% of women still choose to run their businesses from home, compared to 53% of men.

Here’s something interesting: senior citizens who continue to work are often entrepreneurs. While many seniors are retired, more than 42% of those who are still working run established businesses that have been around for more than three and a half years. Around 10% are either starting or managing new businesses that are less than a few years old. And guess what? Over 25% of senior citizens actually have plans to start their own businesses. So, if you’re looking to stay actively working during your golden years, maybe it’s time to consider starting your own business.

There are various sources of labor: Outsourcing, when businesses hire others to perform some tasks; family help, when business owners employ family members or receive unpaid assistance from them; volunteers, who offer their services without payment; and part-time workers, who work for a limited number of hours. According to a survey, more than 20% of business owners utilize these labor sources. Additionally, around 30% of businesses outsource certain activities to external individuals or companies.

Not only are businesses started from home, but they also tend to be run from there: The survey conducted in 2012 reveals that 69% of businesses are initiated in home settings. Moreover, 59% of established businesses that have been operating for over 3 and a half years continue to run their operations from home.

Consumer businesses outnumber other types of businesses: While home businesses can encompass various services such as freelancing, independent contracting, consulting, and virtual assistance, the 2012 study shows that only 33% of all surveyed businesses fall into this category.

I want to share with you some interesting information about different types of businesses. Did you know that 41% of businesses fall into the consumer sector? That means they are involved in industries like hotels, restaurants, or real estate. It also includes home-based internet businesses, like eCommerce that operate online.

There are other types of businesses as well. Some are called extraction businesses, which focus on natural resources such as farming, mining, and forestry. Then there are transforming businesses, like manufacturing. These industries require a lot of money to start and are not commonly operated from home.

Unfortunately, the study doesn’t provide specific numbers on how many home-based businesses there are in each industry sector. But it’s still interesting to learn about the different types of businesses out there!

Why is this Study Important?

This study was conducted by researchers from Babson College and Baruch College. They interviewed around 6,000 people to gather this information. It’s important to study different types of businesses because it helps us understand the diverse economy and the various opportunities that exist for entrepreneurs.

I’m excited to share some fascinating research with you that was sponsored by the Global Entrepreneurship Research Association. This incredible program brings together esteemed institutions like Babson College, London Business School, and representatives from the Association of GEM national teams. Their goal is to study and understand the entrepreneurial journey across different countries, including the United States.

Now, let’s dig into the findings of this study. It takes a closer look at the economic impact of entrepreneurs, which often goes unrecognized in government statistics. We’re talking about those brave individuals running businesses from their homes. It’s important to acknowledge their significant contributions because, guess what? They hire people and outsource services too! That means they are not only creating opportunities for themselves but also helping other companies thrive by providing them with employment opportunities through outsourcing. It’s a win-win situation!