Top > Business > 2005 > December > 2005-12-11

Home Based Businesses Are Growing According to Reports

Today, home-based businesses represent the majority of employers and half of the private workforce sectory. Ninety-nine percent of employers are from small and home-based businesses and generate between two-thirds and three quarters of all net new jobs according to the Small Business Administration. The United States seems to be in the middle of this explosion. The most recent explosion began in late 2003, when banks relaxed their lending standards and the demand for small business loans increased.

A report funded by North Carolina State University states that technology is driving the current growth, however, that same report also states that it`s a, `mix of good news and bad news for current and prospective owners of small and home-based businesses.` The report goes on to say that, `Continuing improvements in information and telecommunications technologies (and the changes in the purchasing habits of consumers that have accompanied them) work to the benefit of rural business owners by effectively reducing the cost of distance. On the other hand, the factors reducing the cost of distance are also intensifying the competitive forces operating within the global marketplace.`

Tinney says new technology is allowing small and home based businesses to compete with large corporations in ways they never could have afforded in the past. He says traffic at his web site for home based businesses is nearly doubling every month and postings in his online community for Entrepreneurs are growing by 40% a month. Although both of those sites are for people that already have a home based business, also he indicated that that traffic at his site for people to looking to start a home based business is also up by similar amounts.