SlideShare uma empresa Scribd logo
1 de 9
Baixar para ler offline
Small Business Success Index Research Note

Homepreneurs: A Vital Economic Force

Alex Andon manufactures jellyfish tanks in his house, has several employees,
and even raises jellyfish in one of his bathtubs.

Sheri Reingold teaches piano to over 90 students in her home. When she
isn’t teaching, she’s training new teachers in the U.S. and as far away as
Australia to improve their business. Her living room is her recital hall. Her
office is her master bedroom. And her training facilities are other teachers’
living rooms.

Chris Strausser helps high school student athletes realize their dream of
playing at the college level. His home-based business, Getting in Edu,
provides information and advisory services to student athletes and their
parents across the U.S.

These people are all homepreneurs, small business owners running viable
enterprises from their home.      Some--interior designers, pool cleaners and
performance musicians, for example--perform their core services elsewhere.
Others, like freelance writers, artists, or online retailers, do the majority of
work at home. In either case, they share one key common denominator:
Their headquarters—their operational control center—is based in their home,
anything from a bedroom or garage to a barn or a studio. What’s more,
they’re building successful small businesses that provide at least 50% of
their household income by selling products and services not just locally, but
nationally and, often, around the globe.

Although roughly 6.6 million home-based businesses fit the homepreneur
description – 43% of the over 15 million home-based businesses in the US --
they’re the Rodney Dangerfields of the small business world, rarely regarded
as significant players in the U.S. economy.1 Instead, the common perception
is that home-based businesses are merely hobbies or side businesses
contributing little to the business owner’s income or the overall economy.




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
Yet, data from the Network Solutions Small Business Success Index (SBSI)
survey reveals a very different story: Homepreneurs are operating
significant businesses that are as successful as non-home based businesses.
Even more noteworthy, their home-based businesses are important
contributors to employment and the overall U.S. economy. And, due to
everything from advances in technology to demographic and economic shifts,
the number of homepreneurs is likely to surge over the next few years.


More than Glorified Hobbyists

According to the SBSI data, homepreneurs comprise a seldom recognized
economic force, accounting for about 34% of all small businesses that
provide more than half of the owner’s household income. The vast majority-
-75% --report they work full-time in their home business. Plus, many
generate substantial revenue. About 35% have revenues of more than
$125,000 and 8% more than $500,000. What’s more, median household
income is substantially higher than it is for the population as a whole:
roughly $75,000 for homepreneurs vs. $50,233 for households in general.2

These businesses are also typically well-established and long-lasting. Almost
half of the homepreneurs surveyed in the Network Solutions poll had been in
business for more than 15 years. Only 20% of those surveyed had been in
business for less than five years.


Homepreneurs: As Competitive as Businesses Outside the Home

Network Solutions and the Robert H. Smith School of Business at the
University of Maryland teamed up last year to create the Small Business
Success Index. This index measures small business competitiveness and
success along six key functional dimensions – capital access, marketing and
innovation, workforce, customer service, computer technology and
compliance - and includes both internal (e.g. owner traits) and external (e.g.
economic) factors that relate to small business competitiveness.




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
The upshot: An analysis of the index revealed that homepreneur businesses
are as competitive and successful as businesses located outside the home. In
fact, homepreneurs and non-home based small business owners scored
roughly the same across the sub-indices of competitiveness.


                                   SBSI Index Scores




Engines of Job Creation

Of course, homepreneur businesses provide employment and income to their
owners. But, more than that, they also help create a significant number of
jobs. In fact, half of all homepreneurs have employees. While the average
homepreneur business has two employees (including the owner), 39% have
between two and five employees and 10% have more than five. Using these
average employment numbers, Emergent Research estimates that
homepreneur businesses currently employ roughly 13.2 million Americans,
including the owner.3

To put these figures in perspective, let’s compare them to U.S. employment
generated by two important industrial segments: venture-backed firms and
the oil and gas industry. Analysis by the National Venture Capital Association
shows that companies that received venture capital backing --including such
corporate giants as Intel, Microsoft and Apple--employed 10.4 million in
2006.




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
For the oil and gas sector, an analysis by PriceWaterhouseCoopers shows
that the oil and gas industry’s total U.S. employment contribution was 9.2
million full and part-time jobs in 2007.4


A Vital Economic Role, No Matter What the Size

Home-based ventures are important for a number of other reasons,
regardless of their size and contribution to household income. First, homes
often nurture the initial step in business creation. Homes increasingly serve
as do-it-yourself business incubators, providing a low-cost and convenient
place to test business ideas. Most knowledge-based small businesses can be
started at home with just a personal computer, printer and an Internet
connection. For unintentional entrepreneurs in particular – people who turn
to self-employment due to job loss – small home-based businesses provide a
quick way to get their new ventures going.

What’s more, entrepreneurs hoping to build larger businesses also often start
their business at home. A recent study released by the Small Business
Administration shows that about 50% of the growth-oriented small
businesses surveyed that started in 2004 were home-based.5 The study also
found that almost all of the growth-oriented businesses which started at
home in 2004 stayed home-based through 2006.

Even smaller, part-time hobby or sideline businesses play an important part
in the U.S. economy. While not generating a majority of the household
income, these hobbypreneurs and part-timers still augment family income
and provide opportunities for work/life balance that might be unavailable
otherwise.




Important Now and More Important in the Future

              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
A number of trends and economic shifts are likely to accelerate the growth of
home-based businesses:

 - The lower costs and risks associated with starting a home-based business:
The Internet and new, lower cost technologies have made starting home
businesses easier and cheaper than ever before. Also, with employer benefit
packages being cut and the chances of losing a corporate job increasing,
many view starting a home business as no more risky than traditional
employment.

- Demographic and social shifts: Aging baby boomers, women, Gen Y and
others are all seeing home business ownership as an increasingly viable work
option. An interest in achieving work/life balance, flexibility, the opportunity
to pursue a passion and working for yourself are some of the reasons given
for starting a home business.

- A lack of corporate jobs: Large corporations have been battered by the
recession. Even if the economic recovery is strong, it is unlikely these
companies will dramatically increase hiring. Instead of hiring full time staff,
they will stay flexible and lean through the increased use of technology,
contractors, partnerships and outsourcing. As a result, starting a home
business will be the best, and in many cases, the only option for corporate
refugees.

The message is clear. Homepreneurs play a crucial role in income, job and
business creation. It’s time they got the respect they deserve.




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
Key findings about homepreneur businesses include:

   •   There are about 6.6 million home businesses that generate at least
       50% of the owner’s household income
   •   Homepreneur businesses employ over13 million people.
   •   35% of homepreneur businesses generate more than $125,000 in
       revenue; 8% more than $500,000.
   •   Homepreneur businesses are competitive, scoring roughly the same on
       the Small Business Success Index as small businesses based outside
       the home.



Who are Homepreneurs?

   •   Homepreneurs tend to be male, middle-aged and white. Specifically,
       according to the 2009 Network Solutions survey:
   •   69% of homepreneurs are male, 31% female
   •   88% of the respondents identified themselves as non-minorities and
       11% identified as minorities
   •   52% were over 55 or older and only 6% were less than 35.
   •   46% of homepreneurs reported completing college.



About the Small Business Success Index

Given the importance of the small business sector, Network Solutions®, LLC
and the University of Maryland’s Robert H. Smith School of Business have
partnered to track the competitive health of small businesses over time.

The baseline survey for the Small Business Success Index (SBSI) was
collected in December 2008 through January 2009 by interviewing 1000
small business owners over the telephone. The second wave was collected in
June 2009 from 500 small business owners.




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
Small businesses included in the study are privately owned, for-profit, have
fewer than 100 employees, and have a payroll and/or contributed to at least
50% of the owner’s household income. The data are weighted to ensure
representativeness to the entire population of small businesses in the U.S.
The survey is longitudinal in nature, tracking small business trends over
time; the completion of the second wave provides a six month trend line.

The SBSI is composed of 6 distinct dimensions, which combine to give a total
competitiveness score, ranging from 0 to 100. Competitiveness in this study
is defined as the level of success a small business achieves in conducting the
organizational activities critical to its short and long term viability. The more
competitive a small business is, the more likely it is to meet the personal and
business goals of its owners and show positive financial results.

The survey is sponsored by Network Solutions, LLC and the Robert H. Smith
School of Business, University of Maryland. Rockbridge Associates, Inc., an
independent marketing research firm, conducted the survey.


About This Research Note

The research in this note was conducted by Emergent Research based on
analysis of the SBSI survey data. Emergent Research is a research and
consulting firm that identifies, analyzes and forecasts the trends and forces
impacting small businesses and their role in the global economy.


Small Business Success Index Research Note - Footnotes

Homepreneurs: A Vital Economic Force

1. The U.S. Small Business Administration Office of Advocacy Frequently
Asked Questions document states there are 29.6 million U.S. small
businesses and 52% are home-based.




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
The 6.6 million estimate of the number of homepreneurs – which we define
as home-based businesses that provide at least half of the owner’s household
income – is based on analysis by Emergent Research of the U.S. Census
2002 Survey of Business Owners business receipts data and Network
Solutions Small Business Success Index survey data on home-based
businesses.

2. 2007 U.S. median household income from the U.S. Census.

3. Emergent Research estimate based on average number of homepreneur
employees from Small Business Success Index data and the number of
homepreneurs (footnote 1).

4. Venture Impact: The Economic Importance of Venture Capital Backed
Companies to the U.S. Economy 4th edition, 2007. Prepared for the National
Venture Capital Association by Global Insights, Inc.

5. The Economic Impacts of the Oil and Natural Gas on the U.S. Economy:
Employment, Labor Income and Value Added, September 2009. Prepared for
the American Petroleum Institute by PriceWaterhouseCoopers.

6. Startup Business Characteristics and Dynamics: A Data Analysis of the
Kauffman Firm Survey, a working paper by Ying Lowry, SBA Office of
Advocacy, August 2009.




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved
The Small Business Success Index, an ongoing measurement of overall
health of the U.S. small business sector, was commissioned by Network
Solutions, LLC and the University of Maryland's Robert H. Smith School of
Business. Rockbridge Associates, Inc., an independent marketing research
firm, conducted the survey.

The full Small Business Success Index Report can be found online at
www.GrowSmartBusiness.com, or by reaching out to the press contacts
below.

Network Solutions, LLC                              Robert H. Smith School of Business
13861 Sunrise Valley Dr.                            University of Maryland
Suite 300                                           3461 Van Munching Hall
Herndon, VA 20171                                   College Park, MD 2074


Media Inquiries
Susan Wade,
Director of PR for Network Solutions, LLC
703-668-5057
swade@networksolutions.com

Carrie Handwerker,
PR Associate for Robert H. Smith School of Business
301-405-5833
chand@rhsmith.umd.edu

Blogger Relations
Shashi Bellamkonda
Blog: http://growsmartbusiness.com/small-business-news
Twitter: http://twitter.com/growsmartbiz
growsmartbiz@networksolutions.com




              THE SMALL BUSINESS SUCCESS INDEX
                                        OCTOBER 2009
       © 2009 Network Solutions®, LLC. All rights reserved

Mais conteúdo relacionado

Mais procurados

Google - SWOT Analysis
Google - SWOT AnalysisGoogle - SWOT Analysis
Google - SWOT AnalysisAkash P
 
Women in the Workplace: Travelers Conference presentation April 2019
Women in the Workplace: Travelers Conference presentation April 2019Women in the Workplace: Travelers Conference presentation April 2019
Women in the Workplace: Travelers Conference presentation April 2019McKinsey & Company
 
training report (godrej)
training report (godrej)training report (godrej)
training report (godrej)PratyushVerma11
 
PwC Presentation
PwC PresentationPwC Presentation
PwC PresentationTonyTNguyen
 
Economics presentation (Ease of Doing business in India ppt)
Economics presentation  (Ease of Doing business in India ppt)Economics presentation  (Ease of Doing business in India ppt)
Economics presentation (Ease of Doing business in India ppt)Adithya Shettar
 
Keppel Corporation AGM 2023 Presentation Slides
Keppel Corporation AGM 2023 Presentation SlidesKeppel Corporation AGM 2023 Presentation Slides
Keppel Corporation AGM 2023 Presentation SlidesKeppelCorporation
 
Ease Of Doing Business - Reforms in Maharashtra - May 2018
Ease Of Doing Business - Reforms in Maharashtra - May 2018 Ease Of Doing Business - Reforms in Maharashtra - May 2018
Ease Of Doing Business - Reforms in Maharashtra - May 2018 Confederation of Indian Industry
 
Royalty range presentation 2017
Royalty range presentation 2017Royalty range presentation 2017
Royalty range presentation 2017Greta Eberson
 
Vibrant Gujarat - Services Sector Profile
Vibrant Gujarat - Services Sector ProfileVibrant Gujarat - Services Sector Profile
Vibrant Gujarat - Services Sector ProfileVibrant Gujarat
 

Mais procurados (13)

Google - SWOT Analysis
Google - SWOT AnalysisGoogle - SWOT Analysis
Google - SWOT Analysis
 
Women in the Workplace: Travelers Conference presentation April 2019
Women in the Workplace: Travelers Conference presentation April 2019Women in the Workplace: Travelers Conference presentation April 2019
Women in the Workplace: Travelers Conference presentation April 2019
 
Doing Business in Egypt
Doing Business in EgyptDoing Business in Egypt
Doing Business in Egypt
 
Overview on sustainability reporting
Overview on sustainability reportingOverview on sustainability reporting
Overview on sustainability reporting
 
training report (godrej)
training report (godrej)training report (godrej)
training report (godrej)
 
Artificial Intelligence: Have No Fear
Artificial Intelligence: Have No FearArtificial Intelligence: Have No Fear
Artificial Intelligence: Have No Fear
 
PwC Presentation
PwC PresentationPwC Presentation
PwC Presentation
 
Economics presentation (Ease of Doing business in India ppt)
Economics presentation  (Ease of Doing business in India ppt)Economics presentation  (Ease of Doing business in India ppt)
Economics presentation (Ease of Doing business in India ppt)
 
Keppel Corporation AGM 2023 Presentation Slides
Keppel Corporation AGM 2023 Presentation SlidesKeppel Corporation AGM 2023 Presentation Slides
Keppel Corporation AGM 2023 Presentation Slides
 
BCG Telco Sustainability Index
BCG Telco Sustainability IndexBCG Telco Sustainability Index
BCG Telco Sustainability Index
 
Ease Of Doing Business - Reforms in Maharashtra - May 2018
Ease Of Doing Business - Reforms in Maharashtra - May 2018 Ease Of Doing Business - Reforms in Maharashtra - May 2018
Ease Of Doing Business - Reforms in Maharashtra - May 2018
 
Royalty range presentation 2017
Royalty range presentation 2017Royalty range presentation 2017
Royalty range presentation 2017
 
Vibrant Gujarat - Services Sector Profile
Vibrant Gujarat - Services Sector ProfileVibrant Gujarat - Services Sector Profile
Vibrant Gujarat - Services Sector Profile
 

Destaque

Collaborating in the Clouds: selecting tools
Collaborating in the Clouds: selecting toolsCollaborating in the Clouds: selecting tools
Collaborating in the Clouds: selecting toolsBobbi Newman
 
Comune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 Ab
Comune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 AbComune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 Ab
Comune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 Abmaurinbu
 
Putting 2.0 to Work for You
Putting 2.0 to Work for YouPutting 2.0 to Work for You
Putting 2.0 to Work for YouBobbi Newman
 
How Nonprofit Communicators Combine Goals for 2013
How Nonprofit Communicators Combine Goals for 2013How Nonprofit Communicators Combine Goals for 2013
How Nonprofit Communicators Combine Goals for 2013Kivi Leroux Miller
 
Macul 08b Myrmel
Macul 08b MyrmelMacul 08b Myrmel
Macul 08b Myrmelguest5ac70d
 
Securing WordPress by Jeff Hoffman
Securing WordPress by Jeff HoffmanSecuring WordPress by Jeff Hoffman
Securing WordPress by Jeff HoffmanJeff Hoffman
 
Social Media Marketing SIIA Presentation
Social Media Marketing SIIA PresentationSocial Media Marketing SIIA Presentation
Social Media Marketing SIIA Presentationmweisburgh
 
Collaborative Work Spaces - Part 1
Collaborative Work Spaces - Part 1Collaborative Work Spaces - Part 1
Collaborative Work Spaces - Part 1Ben Ullman
 
The Pigman Vocabulary
The Pigman VocabularyThe Pigman Vocabulary
The Pigman Vocabularybarryrbarber
 
Introducing the Open Container Project
Introducing the Open Container ProjectIntroducing the Open Container Project
Introducing the Open Container ProjectAndrew Kennedy
 
Studying the Deep Structure of Young-Adult News Consumption
Studying the Deep Structure of Young-Adult News ConsumptionStudying the Deep Structure of Young-Adult News Consumption
Studying the Deep Structure of Young-Adult News Consumptionalirafat
 
Fets amb massapà
Fets amb massapàFets amb massapà
Fets amb massapàguest85b218
 
From Military to Marriage: Principles of 21st Century Marketing
From Military to Marriage: Principles of 21st Century MarketingFrom Military to Marriage: Principles of 21st Century Marketing
From Military to Marriage: Principles of 21st Century MarketingSimon Young
 
Ragtag leadership presentation - BarCamp Auckland 2010
Ragtag leadership presentation - BarCamp Auckland 2010Ragtag leadership presentation - BarCamp Auckland 2010
Ragtag leadership presentation - BarCamp Auckland 2010Simon Young
 

Destaque (20)

Collaborating in the Clouds: selecting tools
Collaborating in the Clouds: selecting toolsCollaborating in the Clouds: selecting tools
Collaborating in the Clouds: selecting tools
 
Flowers
FlowersFlowers
Flowers
 
Mexic
MexicMexic
Mexic
 
Comune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 Ab
Comune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 AbComune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 Ab
Comune Di Casier Per Pubblicazione Con Dati Di Confronto Inferiori A 10000 Ab
 
Putting 2.0 to Work for You
Putting 2.0 to Work for YouPutting 2.0 to Work for You
Putting 2.0 to Work for You
 
How Nonprofit Communicators Combine Goals for 2013
How Nonprofit Communicators Combine Goals for 2013How Nonprofit Communicators Combine Goals for 2013
How Nonprofit Communicators Combine Goals for 2013
 
Locuinta
LocuintaLocuinta
Locuinta
 
資訊作業
資訊作業資訊作業
資訊作業
 
Macul 08b Myrmel
Macul 08b MyrmelMacul 08b Myrmel
Macul 08b Myrmel
 
Securing WordPress by Jeff Hoffman
Securing WordPress by Jeff HoffmanSecuring WordPress by Jeff Hoffman
Securing WordPress by Jeff Hoffman
 
Social Media Marketing SIIA Presentation
Social Media Marketing SIIA PresentationSocial Media Marketing SIIA Presentation
Social Media Marketing SIIA Presentation
 
Collaborative Work Spaces - Part 1
Collaborative Work Spaces - Part 1Collaborative Work Spaces - Part 1
Collaborative Work Spaces - Part 1
 
Sua1 T
Sua1 TSua1 T
Sua1 T
 
The Pigman Vocabulary
The Pigman VocabularyThe Pigman Vocabulary
The Pigman Vocabulary
 
Introducing the Open Container Project
Introducing the Open Container ProjectIntroducing the Open Container Project
Introducing the Open Container Project
 
Studying the Deep Structure of Young-Adult News Consumption
Studying the Deep Structure of Young-Adult News ConsumptionStudying the Deep Structure of Young-Adult News Consumption
Studying the Deep Structure of Young-Adult News Consumption
 
Fets amb massapà
Fets amb massapàFets amb massapà
Fets amb massapà
 
Roma
RomaRoma
Roma
 
From Military to Marriage: Principles of 21st Century Marketing
From Military to Marriage: Principles of 21st Century MarketingFrom Military to Marriage: Principles of 21st Century Marketing
From Military to Marriage: Principles of 21st Century Marketing
 
Ragtag leadership presentation - BarCamp Auckland 2010
Ragtag leadership presentation - BarCamp Auckland 2010Ragtag leadership presentation - BarCamp Auckland 2010
Ragtag leadership presentation - BarCamp Auckland 2010
 

Semelhante a Homepreneurs a vital_economic_force

BUS110 Chap 6 - Entrepreneurship and Starting a Small Business
BUS110 Chap 6 - Entrepreneurship and Starting a Small BusinessBUS110 Chap 6 - Entrepreneurship and Starting a Small Business
BUS110 Chap 6 - Entrepreneurship and Starting a Small BusinessDeborah Oronzio
 
E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...
E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...
E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...AdCMO
 
Chp1 The Foundations Of Entrepreneurship
Chp1 The Foundations Of EntrepreneurshipChp1 The Foundations Of Entrepreneurship
Chp1 The Foundations Of EntrepreneurshipAwais Ahmed
 
Small Business Incubation Fact Sheet Provided By A R W L H C
Small  Business  Incubation  Fact  Sheet   Provided By  A R W L H CSmall  Business  Incubation  Fact  Sheet   Provided By  A R W L H C
Small Business Incubation Fact Sheet Provided By A R W L H CMartin Mongiello
 
Chapter 6 PowerPoint.pptx
Chapter 6 PowerPoint.pptxChapter 6 PowerPoint.pptx
Chapter 6 PowerPoint.pptxTimAshton11
 
Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...
Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...
Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...Freddie Kirsten
 
Content Marketing White Paper Example
Content Marketing White Paper ExampleContent Marketing White Paper Example
Content Marketing White Paper ExampleRachael Wachstein
 
EcoQuest Business Opportunity
EcoQuest  Business OpportunityEcoQuest  Business Opportunity
EcoQuest Business Opportunitypureliving
 
Benefits Of A Small Business
Benefits Of A Small BusinessBenefits Of A Small Business
Benefits Of A Small BusinessJennifer Cruz
 
Electronic business forum
Electronic business forumElectronic business forum
Electronic business forumashi309
 
University of Chicago - What Do Small Businesses Do?
University of Chicago - What Do Small Businesses Do?University of Chicago - What Do Small Businesses Do?
University of Chicago - What Do Small Businesses Do?Alyson Davis
 
Richard Wilson's Family Office Monthly
Richard Wilson's Family Office MonthlyRichard Wilson's Family Office Monthly
Richard Wilson's Family Office MonthlyElizabeth Lesar
 
Canada Is Home Of The Fearless Entrepreneur
Canada Is Home Of The Fearless EntrepreneurCanada Is Home Of The Fearless Entrepreneur
Canada Is Home Of The Fearless EntrepreneurKatherine Roos
 

Semelhante a Homepreneurs a vital_economic_force (20)

Benefits And Advantages Of A Business Essay
Benefits And Advantages Of A Business EssayBenefits And Advantages Of A Business Essay
Benefits And Advantages Of A Business Essay
 
BUS110 Chap 6 - Entrepreneurship and Starting a Small Business
BUS110 Chap 6 - Entrepreneurship and Starting a Small BusinessBUS110 Chap 6 - Entrepreneurship and Starting a Small Business
BUS110 Chap 6 - Entrepreneurship and Starting a Small Business
 
Family Business Essay
Family Business EssayFamily Business Essay
Family Business Essay
 
E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...
E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...
E marketer small_businesses_as_tough_b2b_customers-shaky_in_their_own_marketi...
 
Chp1 The Foundations Of Entrepreneurship
Chp1 The Foundations Of EntrepreneurshipChp1 The Foundations Of Entrepreneurship
Chp1 The Foundations Of Entrepreneurship
 
Small Business Incubation Fact Sheet Provided By A R W L H C
Small  Business  Incubation  Fact  Sheet   Provided By  A R W L H CSmall  Business  Incubation  Fact  Sheet   Provided By  A R W L H C
Small Business Incubation Fact Sheet Provided By A R W L H C
 
Chapter 6 PowerPoint.pptx
Chapter 6 PowerPoint.pptxChapter 6 PowerPoint.pptx
Chapter 6 PowerPoint.pptx
 
ch01.ppt
ch01.pptch01.ppt
ch01.ppt
 
ch01.ppt
ch01.pptch01.ppt
ch01.ppt
 
Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...
Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...
Part 3 - Economic Importance Of The Home Based Business --- Earn Money from H...
 
Content Marketing White Paper Example
Content Marketing White Paper ExampleContent Marketing White Paper Example
Content Marketing White Paper Example
 
EcoQuest Business Opportunity
EcoQuest  Business OpportunityEcoQuest  Business Opportunity
EcoQuest Business Opportunity
 
Benefits Of A Small Business
Benefits Of A Small BusinessBenefits Of A Small Business
Benefits Of A Small Business
 
Entrepreneurship
EntrepreneurshipEntrepreneurship
Entrepreneurship
 
ENT MERGED.ppt
ENT MERGED.pptENT MERGED.ppt
ENT MERGED.ppt
 
Electronic business forum
Electronic business forumElectronic business forum
Electronic business forum
 
University of Chicago - What Do Small Businesses Do?
University of Chicago - What Do Small Businesses Do?University of Chicago - What Do Small Businesses Do?
University of Chicago - What Do Small Businesses Do?
 
Richard Wilson's Family Office Monthly
Richard Wilson's Family Office MonthlyRichard Wilson's Family Office Monthly
Richard Wilson's Family Office Monthly
 
Canada Is Home Of The Fearless Entrepreneur
Canada Is Home Of The Fearless EntrepreneurCanada Is Home Of The Fearless Entrepreneur
Canada Is Home Of The Fearless Entrepreneur
 
Owning A Business Essay
Owning A Business EssayOwning A Business Essay
Owning A Business Essay
 

Mais de Shashi Bellamkonda

Giving Marketing A Voice Shashi Bellamkonda Digital Summit 2017
Giving Marketing A Voice  Shashi Bellamkonda Digital Summit 2017Giving Marketing A Voice  Shashi Bellamkonda Digital Summit 2017
Giving Marketing A Voice Shashi Bellamkonda Digital Summit 2017Shashi Bellamkonda
 
Presidential tweets a direct line to the public
Presidential tweets   a direct line to the publicPresidential tweets   a direct line to the public
Presidential tweets a direct line to the publicShashi Bellamkonda
 
10 Steps to Manage Your Online Ratings RDJ2016
10 Steps to Manage Your Online Ratings RDJ201610 Steps to Manage Your Online Ratings RDJ2016
10 Steps to Manage Your Online Ratings RDJ2016Shashi Bellamkonda
 
Viral Video Strategy ; The Network Solutions Go Granny Big Game Video
Viral Video Strategy ; The Network Solutions Go Granny Big Game VideoViral Video Strategy ; The Network Solutions Go Granny Big Game Video
Viral Video Strategy ; The Network Solutions Go Granny Big Game VideoShashi Bellamkonda
 
My 2nd Grader's App Idea - Who wants in ? The road puzzle game
My 2nd Grader's App Idea - Who wants in ? The road puzzle gameMy 2nd Grader's App Idea - Who wants in ? The road puzzle game
My 2nd Grader's App Idea - Who wants in ? The road puzzle gameShashi Bellamkonda
 
Social Trends Shashi Bellamkonda
Social Trends Shashi BellamkondaSocial Trends Shashi Bellamkonda
Social Trends Shashi BellamkondaShashi Bellamkonda
 
Ragan conference pr measurement presentation
Ragan conference pr measurement presentationRagan conference pr measurement presentation
Ragan conference pr measurement presentationShashi Bellamkonda
 
SNCR Award Winning Case Study on Reputation Management 2011
SNCR Award Winning Case Study on Reputation Management 2011SNCR Award Winning Case Study on Reputation Management 2011
SNCR Award Winning Case Study on Reputation Management 2011Shashi Bellamkonda
 
Remember the Walkman? Music Player Evolution.
Remember the Walkman? Music Player Evolution.Remember the Walkman? Music Player Evolution.
Remember the Walkman? Music Player Evolution.Shashi Bellamkonda
 
Uploading this event for Nostalgic reasons
Uploading this event for Nostalgic reasons Uploading this event for Nostalgic reasons
Uploading this event for Nostalgic reasons Shashi Bellamkonda
 
How to Sell Social Media to the C Suite _ Shashi Bellamkonda
How to Sell Social Media to the C Suite _ Shashi BellamkondaHow to Sell Social Media to the C Suite _ Shashi Bellamkonda
How to Sell Social Media to the C Suite _ Shashi BellamkondaShashi Bellamkonda
 
Listen to your customers and they will listen to you optsum phoenix septemb...
Listen to your customers and they will listen to you   optsum phoenix septemb...Listen to your customers and they will listen to you   optsum phoenix septemb...
Listen to your customers and they will listen to you optsum phoenix septemb...Shashi Bellamkonda
 
Farms in Montgomery County Maryland
Farms in Montgomery County MarylandFarms in Montgomery County Maryland
Farms in Montgomery County MarylandShashi Bellamkonda
 
SXSW How Companies Created Buzz
SXSW How Companies Created Buzz SXSW How Companies Created Buzz
SXSW How Companies Created Buzz Shashi Bellamkonda
 
Small Business and Social Media presentation at Rockville Womens Business Center
Small Business and Social Media presentation at Rockville Womens Business CenterSmall Business and Social Media presentation at Rockville Womens Business Center
Small Business and Social Media presentation at Rockville Womens Business CenterShashi Bellamkonda
 
Trends In New Media Luncheon at Optsum 2010
Trends In New Media Luncheon at Optsum 2010Trends In New Media Luncheon at Optsum 2010
Trends In New Media Luncheon at Optsum 2010Shashi Bellamkonda
 

Mais de Shashi Bellamkonda (20)

Giving Marketing A Voice Shashi Bellamkonda Digital Summit 2017
Giving Marketing A Voice  Shashi Bellamkonda Digital Summit 2017Giving Marketing A Voice  Shashi Bellamkonda Digital Summit 2017
Giving Marketing A Voice Shashi Bellamkonda Digital Summit 2017
 
Presidential tweets a direct line to the public
Presidential tweets   a direct line to the publicPresidential tweets   a direct line to the public
Presidential tweets a direct line to the public
 
10 Steps to Manage Your Online Ratings RDJ2016
10 Steps to Manage Your Online Ratings RDJ201610 Steps to Manage Your Online Ratings RDJ2016
10 Steps to Manage Your Online Ratings RDJ2016
 
Viral Video Strategy ; The Network Solutions Go Granny Big Game Video
Viral Video Strategy ; The Network Solutions Go Granny Big Game VideoViral Video Strategy ; The Network Solutions Go Granny Big Game Video
Viral Video Strategy ; The Network Solutions Go Granny Big Game Video
 
Explain twitter to employees
Explain twitter to employeesExplain twitter to employees
Explain twitter to employees
 
Marketing to the customers
Marketing to the customers Marketing to the customers
Marketing to the customers
 
My 2nd Grader's App Idea - Who wants in ? The road puzzle game
My 2nd Grader's App Idea - Who wants in ? The road puzzle gameMy 2nd Grader's App Idea - Who wants in ? The road puzzle game
My 2nd Grader's App Idea - Who wants in ? The road puzzle game
 
Social Trends Shashi Bellamkonda
Social Trends Shashi BellamkondaSocial Trends Shashi Bellamkonda
Social Trends Shashi Bellamkonda
 
Ragan conference pr measurement presentation
Ragan conference pr measurement presentationRagan conference pr measurement presentation
Ragan conference pr measurement presentation
 
Essentials of marketing
Essentials of marketingEssentials of marketing
Essentials of marketing
 
SNCR Award Winning Case Study on Reputation Management 2011
SNCR Award Winning Case Study on Reputation Management 2011SNCR Award Winning Case Study on Reputation Management 2011
SNCR Award Winning Case Study on Reputation Management 2011
 
Remember the Walkman? Music Player Evolution.
Remember the Walkman? Music Player Evolution.Remember the Walkman? Music Player Evolution.
Remember the Walkman? Music Player Evolution.
 
Uploading this event for Nostalgic reasons
Uploading this event for Nostalgic reasons Uploading this event for Nostalgic reasons
Uploading this event for Nostalgic reasons
 
What if ? Trends ad thoughts
What if ? Trends ad thoughtsWhat if ? Trends ad thoughts
What if ? Trends ad thoughts
 
How to Sell Social Media to the C Suite _ Shashi Bellamkonda
How to Sell Social Media to the C Suite _ Shashi BellamkondaHow to Sell Social Media to the C Suite _ Shashi Bellamkonda
How to Sell Social Media to the C Suite _ Shashi Bellamkonda
 
Listen to your customers and they will listen to you optsum phoenix septemb...
Listen to your customers and they will listen to you   optsum phoenix septemb...Listen to your customers and they will listen to you   optsum phoenix septemb...
Listen to your customers and they will listen to you optsum phoenix septemb...
 
Farms in Montgomery County Maryland
Farms in Montgomery County MarylandFarms in Montgomery County Maryland
Farms in Montgomery County Maryland
 
SXSW How Companies Created Buzz
SXSW How Companies Created Buzz SXSW How Companies Created Buzz
SXSW How Companies Created Buzz
 
Small Business and Social Media presentation at Rockville Womens Business Center
Small Business and Social Media presentation at Rockville Womens Business CenterSmall Business and Social Media presentation at Rockville Womens Business Center
Small Business and Social Media presentation at Rockville Womens Business Center
 
Trends In New Media Luncheon at Optsum 2010
Trends In New Media Luncheon at Optsum 2010Trends In New Media Luncheon at Optsum 2010
Trends In New Media Luncheon at Optsum 2010
 

Último

The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 

Último (20)

The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 

Homepreneurs a vital_economic_force

  • 1. Small Business Success Index Research Note Homepreneurs: A Vital Economic Force Alex Andon manufactures jellyfish tanks in his house, has several employees, and even raises jellyfish in one of his bathtubs. Sheri Reingold teaches piano to over 90 students in her home. When she isn’t teaching, she’s training new teachers in the U.S. and as far away as Australia to improve their business. Her living room is her recital hall. Her office is her master bedroom. And her training facilities are other teachers’ living rooms. Chris Strausser helps high school student athletes realize their dream of playing at the college level. His home-based business, Getting in Edu, provides information and advisory services to student athletes and their parents across the U.S. These people are all homepreneurs, small business owners running viable enterprises from their home. Some--interior designers, pool cleaners and performance musicians, for example--perform their core services elsewhere. Others, like freelance writers, artists, or online retailers, do the majority of work at home. In either case, they share one key common denominator: Their headquarters—their operational control center—is based in their home, anything from a bedroom or garage to a barn or a studio. What’s more, they’re building successful small businesses that provide at least 50% of their household income by selling products and services not just locally, but nationally and, often, around the globe. Although roughly 6.6 million home-based businesses fit the homepreneur description – 43% of the over 15 million home-based businesses in the US -- they’re the Rodney Dangerfields of the small business world, rarely regarded as significant players in the U.S. economy.1 Instead, the common perception is that home-based businesses are merely hobbies or side businesses contributing little to the business owner’s income or the overall economy. THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 2. Yet, data from the Network Solutions Small Business Success Index (SBSI) survey reveals a very different story: Homepreneurs are operating significant businesses that are as successful as non-home based businesses. Even more noteworthy, their home-based businesses are important contributors to employment and the overall U.S. economy. And, due to everything from advances in technology to demographic and economic shifts, the number of homepreneurs is likely to surge over the next few years. More than Glorified Hobbyists According to the SBSI data, homepreneurs comprise a seldom recognized economic force, accounting for about 34% of all small businesses that provide more than half of the owner’s household income. The vast majority- -75% --report they work full-time in their home business. Plus, many generate substantial revenue. About 35% have revenues of more than $125,000 and 8% more than $500,000. What’s more, median household income is substantially higher than it is for the population as a whole: roughly $75,000 for homepreneurs vs. $50,233 for households in general.2 These businesses are also typically well-established and long-lasting. Almost half of the homepreneurs surveyed in the Network Solutions poll had been in business for more than 15 years. Only 20% of those surveyed had been in business for less than five years. Homepreneurs: As Competitive as Businesses Outside the Home Network Solutions and the Robert H. Smith School of Business at the University of Maryland teamed up last year to create the Small Business Success Index. This index measures small business competitiveness and success along six key functional dimensions – capital access, marketing and innovation, workforce, customer service, computer technology and compliance - and includes both internal (e.g. owner traits) and external (e.g. economic) factors that relate to small business competitiveness. THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 3. The upshot: An analysis of the index revealed that homepreneur businesses are as competitive and successful as businesses located outside the home. In fact, homepreneurs and non-home based small business owners scored roughly the same across the sub-indices of competitiveness. SBSI Index Scores Engines of Job Creation Of course, homepreneur businesses provide employment and income to their owners. But, more than that, they also help create a significant number of jobs. In fact, half of all homepreneurs have employees. While the average homepreneur business has two employees (including the owner), 39% have between two and five employees and 10% have more than five. Using these average employment numbers, Emergent Research estimates that homepreneur businesses currently employ roughly 13.2 million Americans, including the owner.3 To put these figures in perspective, let’s compare them to U.S. employment generated by two important industrial segments: venture-backed firms and the oil and gas industry. Analysis by the National Venture Capital Association shows that companies that received venture capital backing --including such corporate giants as Intel, Microsoft and Apple--employed 10.4 million in 2006. THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 4. For the oil and gas sector, an analysis by PriceWaterhouseCoopers shows that the oil and gas industry’s total U.S. employment contribution was 9.2 million full and part-time jobs in 2007.4 A Vital Economic Role, No Matter What the Size Home-based ventures are important for a number of other reasons, regardless of their size and contribution to household income. First, homes often nurture the initial step in business creation. Homes increasingly serve as do-it-yourself business incubators, providing a low-cost and convenient place to test business ideas. Most knowledge-based small businesses can be started at home with just a personal computer, printer and an Internet connection. For unintentional entrepreneurs in particular – people who turn to self-employment due to job loss – small home-based businesses provide a quick way to get their new ventures going. What’s more, entrepreneurs hoping to build larger businesses also often start their business at home. A recent study released by the Small Business Administration shows that about 50% of the growth-oriented small businesses surveyed that started in 2004 were home-based.5 The study also found that almost all of the growth-oriented businesses which started at home in 2004 stayed home-based through 2006. Even smaller, part-time hobby or sideline businesses play an important part in the U.S. economy. While not generating a majority of the household income, these hobbypreneurs and part-timers still augment family income and provide opportunities for work/life balance that might be unavailable otherwise. Important Now and More Important in the Future THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 5. A number of trends and economic shifts are likely to accelerate the growth of home-based businesses: - The lower costs and risks associated with starting a home-based business: The Internet and new, lower cost technologies have made starting home businesses easier and cheaper than ever before. Also, with employer benefit packages being cut and the chances of losing a corporate job increasing, many view starting a home business as no more risky than traditional employment. - Demographic and social shifts: Aging baby boomers, women, Gen Y and others are all seeing home business ownership as an increasingly viable work option. An interest in achieving work/life balance, flexibility, the opportunity to pursue a passion and working for yourself are some of the reasons given for starting a home business. - A lack of corporate jobs: Large corporations have been battered by the recession. Even if the economic recovery is strong, it is unlikely these companies will dramatically increase hiring. Instead of hiring full time staff, they will stay flexible and lean through the increased use of technology, contractors, partnerships and outsourcing. As a result, starting a home business will be the best, and in many cases, the only option for corporate refugees. The message is clear. Homepreneurs play a crucial role in income, job and business creation. It’s time they got the respect they deserve. THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 6. Key findings about homepreneur businesses include: • There are about 6.6 million home businesses that generate at least 50% of the owner’s household income • Homepreneur businesses employ over13 million people. • 35% of homepreneur businesses generate more than $125,000 in revenue; 8% more than $500,000. • Homepreneur businesses are competitive, scoring roughly the same on the Small Business Success Index as small businesses based outside the home. Who are Homepreneurs? • Homepreneurs tend to be male, middle-aged and white. Specifically, according to the 2009 Network Solutions survey: • 69% of homepreneurs are male, 31% female • 88% of the respondents identified themselves as non-minorities and 11% identified as minorities • 52% were over 55 or older and only 6% were less than 35. • 46% of homepreneurs reported completing college. About the Small Business Success Index Given the importance of the small business sector, Network Solutions®, LLC and the University of Maryland’s Robert H. Smith School of Business have partnered to track the competitive health of small businesses over time. The baseline survey for the Small Business Success Index (SBSI) was collected in December 2008 through January 2009 by interviewing 1000 small business owners over the telephone. The second wave was collected in June 2009 from 500 small business owners. THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 7. Small businesses included in the study are privately owned, for-profit, have fewer than 100 employees, and have a payroll and/or contributed to at least 50% of the owner’s household income. The data are weighted to ensure representativeness to the entire population of small businesses in the U.S. The survey is longitudinal in nature, tracking small business trends over time; the completion of the second wave provides a six month trend line. The SBSI is composed of 6 distinct dimensions, which combine to give a total competitiveness score, ranging from 0 to 100. Competitiveness in this study is defined as the level of success a small business achieves in conducting the organizational activities critical to its short and long term viability. The more competitive a small business is, the more likely it is to meet the personal and business goals of its owners and show positive financial results. The survey is sponsored by Network Solutions, LLC and the Robert H. Smith School of Business, University of Maryland. Rockbridge Associates, Inc., an independent marketing research firm, conducted the survey. About This Research Note The research in this note was conducted by Emergent Research based on analysis of the SBSI survey data. Emergent Research is a research and consulting firm that identifies, analyzes and forecasts the trends and forces impacting small businesses and their role in the global economy. Small Business Success Index Research Note - Footnotes Homepreneurs: A Vital Economic Force 1. The U.S. Small Business Administration Office of Advocacy Frequently Asked Questions document states there are 29.6 million U.S. small businesses and 52% are home-based. THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 8. The 6.6 million estimate of the number of homepreneurs – which we define as home-based businesses that provide at least half of the owner’s household income – is based on analysis by Emergent Research of the U.S. Census 2002 Survey of Business Owners business receipts data and Network Solutions Small Business Success Index survey data on home-based businesses. 2. 2007 U.S. median household income from the U.S. Census. 3. Emergent Research estimate based on average number of homepreneur employees from Small Business Success Index data and the number of homepreneurs (footnote 1). 4. Venture Impact: The Economic Importance of Venture Capital Backed Companies to the U.S. Economy 4th edition, 2007. Prepared for the National Venture Capital Association by Global Insights, Inc. 5. The Economic Impacts of the Oil and Natural Gas on the U.S. Economy: Employment, Labor Income and Value Added, September 2009. Prepared for the American Petroleum Institute by PriceWaterhouseCoopers. 6. Startup Business Characteristics and Dynamics: A Data Analysis of the Kauffman Firm Survey, a working paper by Ying Lowry, SBA Office of Advocacy, August 2009. THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved
  • 9. The Small Business Success Index, an ongoing measurement of overall health of the U.S. small business sector, was commissioned by Network Solutions, LLC and the University of Maryland's Robert H. Smith School of Business. Rockbridge Associates, Inc., an independent marketing research firm, conducted the survey. The full Small Business Success Index Report can be found online at www.GrowSmartBusiness.com, or by reaching out to the press contacts below. Network Solutions, LLC Robert H. Smith School of Business 13861 Sunrise Valley Dr. University of Maryland Suite 300 3461 Van Munching Hall Herndon, VA 20171 College Park, MD 2074 Media Inquiries Susan Wade, Director of PR for Network Solutions, LLC 703-668-5057 swade@networksolutions.com Carrie Handwerker, PR Associate for Robert H. Smith School of Business 301-405-5833 chand@rhsmith.umd.edu Blogger Relations Shashi Bellamkonda Blog: http://growsmartbusiness.com/small-business-news Twitter: http://twitter.com/growsmartbiz growsmartbiz@networksolutions.com THE SMALL BUSINESS SUCCESS INDEX OCTOBER 2009 © 2009 Network Solutions®, LLC. All rights reserved