69 Percent of U.S. Entrepreneurs Start Their Businesses at Home

Some interesting facts on home based business startups from www.smallbiztrends.com

If you operate your business from home, you’re not alone. A recent survey of U.S. businesses indicates the majority of entrepreneurs do the same. Today in many businesses, work is done “virtually.” Workers’ technology (computers, mobile devices and Internet connections) is much more important than their physical workspace, especially in knowledge businesses.

Here are some additional facts of interest on home-based businesses and entrepreneurship:

• It costs less than you might think to get a business off the ground — According to the study, entrepreneurs required a median of $15,000 to start a business. On the one hand, that’s a lot.  But on the other hand, it’s an amount that many people in the United States can save up or raise from family.

• Most startups are self-funded or family/friends funded —  The vast majority of startup funds (82%) came from the entrepreneur himself or herself, or family and friends.

• Venture capital is rare – Only one in 1,000 entrepreneurs in the United States receive venture capital  funding, according to a finding cited from an earlier study in 2009.  In other words, forget about venture capital. You’re better off spending your time growing your business than searching for VCs.

• Entrepreneurship is not limited to a certain age group — Roughly 15% to 20% of adults across all age groups are entrepreneurs.

• Entrepreneurship does follow age patterns, however — Young entrepreneurs have the highest intentions to start a business, with 30.5% saying they intend to start one.  The intention to start a business drops during mid-career, and then starts rising again at age 65 and up.

• Women entrepreneurs are more likely to have home-based businesses — Among startup businesses that operate out of the owner’s home, 72% are operated by women — versus 61% of men.  Among established businesses more than 3 and a half years old, 68% of women still operate the business from home, versus 53% of men.

• Senior citizens who continue to work tend to be entrepreneurs — Many seniors, of course, are retired.  But of those still working, more than 42% run established businesses (i.e., businesses more than 3 and a half years old).  About 10% are starting or running new businesses of less than a few years old. And over 25% intend to start a business.  So if you want to stay actively working in your senior years, consider your own business.

• Outsourcing, family help, volunteers and part-time workers are sources of labor — Over 20% of business owners say they employed family members, had unpaid help (often family members), or part time employees.  And 30% outsource some activities.

• Businesses not only are started from home, but tend to be run from them — The 2012 survey says 69% of businesses now start in the home. And 59% of established businesses more than 3 and a half years old continue to operate from there.

• More businesses are consumer businesses than any other type —  We all know home businesses can include services like freelancing, independent contracting, consulting and virtual assistance.  But the 2012 study shows only 33% of all businesses surveyed fall into this category.