Census reveals home-based business makeup

A survey conducted by the U.S. Census Bureau found that nearly 52 percent of responding businesses are identified as being conducted from home.

The Survey of Business Owners, released last Tuesday, found that during 2007 only 6.9 percent of home-based businesses posted $250,000 or more in receipts. At the same time, 57.1 percent of home-based businesses generated less than $25,000 annually.

More than 30 percent of home-based business owners that required startup capital were able to launch operations with less than $5,000. Of the firms that needed startup money, 1.5 percent required $1 million or more.

Approximately 10.4 percent of home-based businesses were started or acquired by owners that used credit cards to finance the start-ups or acquisitions. Another 10.7 percent financed starting or purchasing their business with bank loans.

‘Most businesses are started by people who dig into their own pockets for at least some of their startup capital, Census Bureau Deputy Director Thomas Mesenbourg said in a printed statement. ‘This is true for both firms with employees and those without.

Other home-based business statistics presented by the U.S. Census Bureau include:

• Exclusively women-owned businesses 58.2 percent

• Equally men and women-owned businesses 58.1 percent

• Exclusively men-owned businesses 49.1 percent

• Non-minority-owned businesses 54.4 percent

• Equally non-minority and minority-owned business 56 percent

• Minority-owned business 46.5 percent

• Veteran-owned business 55.4 percent

• Non-veteran-owned business 52.9 percent

• Equally veteran and non-veteran-owned business 55.9 percent

• Home-based firms operated as franchises 2.1 percent

• Home-based businesses involved in e-commerce sales 6.6 percent

• Family owned firms 28 percent

• Home-based firms as primary income source 50 percent