Home Business Information

Home-based business has turned into a $102-billion industry in America, according to a study released Thursday by the Office of Advocacy of the U.S. Small Business Administration.

Sole proprietorships are a vital part of our economy, said Thomas M. Sullivan, Advocacy chief counsel. Many are homebased micro businesses; collectively they generate a significant amount of economic activity. For the average sole proprietor, their business provides benefits of entrepreneurship that go beyond just income and revenue.

The study examines federal income tax data from year 2002 sole proprietorship returns and presents a comparison of homebased and non-homebased sole proprietorships. For example, it finds that the average homebased sole proprietor earned $22,569 in net income while their non-homebased counterparts earned $38,243. Due to lower expenses, particularly in rent and labor costs, the average homebased sole proprietor consistently gained a higher return on gross revenues at 36 percent, versus 21 percent for the non- homebased.

The report also finds the percent of homebased sole proprietorships was greatest in the administrative support, waste management, information and construction sectors. For the non- homebased, the percentage was greatest in the accommodation and food services, finance and insurance, and the catch-all all other services sectors.

# posted by Medical Information : 5:03 AM