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Today, home-based businesses run the gamut from consulting firms and advertising agencies to photography studios and free-lance writing services. According to Scott Clark in the Houston Business Journal, home-based businesses create more than 8,000 new jobs each day and generate nearly $400 billion in annual revenues. In fact, such well-known companies as Amway, Ben and Jerry's, Domino's Pizza, Estee Lauder, Hallmark, and Nike all started as home-based businesses.
The main driving force behind the growth of home-based businesses is the increasing capability and availability of computer and communications technology. Powerful yet affordable home computer systems equipped with modems allow people to send and receive messages, transfer data, and conduct research from their homes, largely eliminating the need to commute to a place of employment. Similarly, sophisticated software programs offering applications in desktop publishing, database management, financial management, and word processing enable one individual to do the work formerly handled by an entire support staff. In addition, the widespread use of cellular phones, pagers, voice mail systems, and toll-free telephone numbers has enhanced the ability of home-based business owners to remain connected to the outside business world. In all, rapid improvements in technology have enabled large numbers of home-based business people to earn the same income they could at a regular jobs while also gaining a number of life-style benefits. Another important factor in the growth of home-based businesses is the transformation of the American economy from a product orientation to a service orientation. Since service businesses generally have no need to store inventory or run production machinery, they are less disruptive and more adaptable to a neighborhood environment.
As a result of these and other factors, an estimated 40 million Americans now work from their homes. Not surprisingly, two-thirds of home-based business owners are women, who choose this option either because of child care concerns or because of a perceived glass ceiling limiting their earnings potential in the corporate world. Running a business out of the home offers a number of advantages, including time savings, control over working hours and conditions, independence, and flexibility. Starting a home-based business is also considerably cheaper than starting a business in rented facilities. In addition to saving money on overhead expenses, commuting costs, and wardrobe expenditures, many home-based business owners can deduct a portion of their rent from their personal income taxes.
Related: Home Based Business, Work From Home, Work At Home, Work At Home Moms, Internet Business Opportunities, Business Opportunities,
Hausman, Carl. The Complete Small Business Sourcebook: Information, Services, and Experts Every Small and Home-Based Business Needs. New York: Times Business, 1999.
Home Business Handbook: Expert Advice for Running a Successful Business Out of Your Home. New York: Perigee Books, 1990.
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