Dear M & M:
What are the home-based business trends?
Definition: A business whose primary office is in the owner’s home. The business can be any size or any type as long as the office itself is located in a home. According to Entrepreneurial Magazine, “Two out of three companies (of all sizes) begin in a spare bedroom, garage, basement or sometimes even a bathroom.” The share of firms that primarily operate out of the home was unchanged from 2002 to 2007 at 52 percent (the latest figure available). Other break downs of different types of businesses include; Franchise 2 percent, Sole Proprietor 73.2 percent, Corporation 19.5 per cent, Employer Based Businesses 21.5 percent and Non-employer Based Business (businesses without employees) 78.5 per cent. In 2007, 24 per cent of businesses that have employees were home based while 63 percent of business that do not have employees tend to be home based. Of the major industries, construction had the highest share of home-based businesses, 70 percent. (Being home-based is not synonymous with working at home.) It is interesting to note that retail trade went from 49 percent home-based in 2002 to 44 percent in 2007 while the share of Internet retail sales went from 1 percent to 3 percent of total retail sales. – Source: U.S. Census Bureau, SBO and Quarterly E-Commerce Report. Three key trends promise expanding opportunities for some small and home-based businesses while diminishing returns for others. They include: Rapid advances in information and telecommunications technologies, an ever more integrated global economy, and changes in the shopping habits of consumers. The success of small and home-based businesses will depend in large measure on the ability of their owners to recognize and respond to these trends. Nowadays, location is less and less of a constraint on the ability of entrepreneurs to operate a successful business.
Dear M & M:
Is youth entrepreneurship increasing?
–Buena High School Graduate
Dear Buena High School Graduate:
Self-employment among younger age groups has been dropping. From 2005 to 2010, self-employment among individuals age 25 and under decreased 19 percent (compared to a 7 percent drop in the overall population). In contrast, self-employment among those age 65 and over increased 24 percent over this period as their population grew. Self-employment rates increase with age; for example, they were 2 percent for those 25 and under and 23 percent for those 65 and over in 2010. Source: Office of Advocacy calculations using U.S. Census Bureau, CPS data.
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