Home is best for american entrepreneurs

New figures from the US Small Business Administration in the US reveal that home-based businesses are generating more than $530bn each year in turnover. The SBA also reports that at 52%, just over half of small US businesses are run from home.

Other findings include:

• home-based businesses recording a lower turnover compared with those in offices, but with a higher net income
• female-owned businesses growing faster than male-run firms, both for new businesses created and income levels.

In an upbeat assessment, report author Joanne Pratt concludes that the number of home business owners will continue to grow, influenced by factors including technology, demographics and lifestyle.

Commenting, Emma Jones of Enterprise Nation said: 'I suspect the same could be said of the factors impacting on the UK’s home business market but this cannot be stated with confidence as we have next to no measurements to base comment on.'

Home-based entrepreneurs were as much to blame for this as public servants and entrepreneurs. 'They are not renowned for coming forward to be counted, making it a challenge to get a precise picture of who is out there and earning what.'

In the report, The impact of location on net income: a comparison of home-based and non-home-based sole proprietors, Ms Pratt notes: 'Because of their general ‘invisibility’ this is a vast, largely unserved market, not only for business support agencies, but for business-to-business commerce as well.'

Enterprise Nation will continue to lobby for support for and better recognition of the contribution of home-based businesses in the UK. It has asked the Department of Trade and Industry's Small Business Service and HM Revenue & Customs to commit to action and count the contribution of UK home business owners.