- Small Business Trends - https://smallbiztrends.com -

When Your Small Business Grows, Should You Move it Out of Your Home? Millions of Biz Owners Say No

According to the SBA, there are over 15 million home-based businesses in the U.S.  And based on analysis of data from the Network Solutions Small Business Success Index [1] (SBSI) and the SBA, around 6.6 million of these are serious home businesses providing at least half of their owner’s household income.

The home has long been viewed as a great place to start a business.  Lower costs are, of course, the key reason.  Many large enterprises such as Ford, HP and Apple Computer started as home businesses.

A recent SBA study [2] of growth-oriented firms that began operations in 2004 shows that the home continues to be a great place to start.  About half of the growth oriented start-ups surveyed were home-based.  And almost all of these firms were still home-based 2 years later.

But the home is not just a great place to start a small business.  Data gleaned from the Small Business Success Index shows that homes can also be a great place to operate a business long term.  Data from the SBSI survey of home-based businesses that generate at least half of their owner’s household income shows:

Just as lower costs are a key reason for starting a business at home, they are also an important reason many small business owners keep their business home-based.

With technology making it cheaper and easier to start and operate a home-based business – and traditional employment harder to find – we expect continued growth in the number of home-based business start-ups.

For more information on home-based businesses, see Homepreneurs: A Vital Economic Force [1].

Editor’s note: this article was originally published at the American Express OPEN Forum under the title:  The Home: A Great Place to Start and Run a Business, and is republished with permission.

* * * * *

About the Author: Steve King is a partner at Emergent Research and a research affiliate at the Institute for the Future. He is a co-author of the Intuit Future of Small Business report series, and a Senior Fellow at the Society for New Communications Research [3]. He blogs at Small Biz Labs [4].