Some weeks ago I was researching data on home based businesses and came by a publication from the SBA that had some interesting information. It showed the percentage of home based businesses in a number of industries. This was pretty interesting because most people imagine home business owners to be self employed individuals that work in a handful of service industries – like consultants, wedding planners, designers, daycare centers, repair people and so on.
What was surprising, at least to me, is that a large portion of major industries that are not commonly associated with home based businesses, in fact had a large percentage of home based companies. Many of them are also self employed.
I created the following chart to show some of the data. One data point that initially caught my attention was that 58% of all manufacturing companies were home based companies. That was eye opening for me because I have always thought that manufacturing businesses were operated out of industrial parks with employees and definitely not home operated.
As you can see, manufacturing is not alone. The transportation industry has a large home based component. So does the architectural/engineering industry. This goes to show that home based businesses do represent a large portion of businesses across a number of industries. This is a huge market – and probably untapped because most companies prefer to sell to larger accounts.
- Construction -24%
- Motor freight – 44%
- Insurance agents – 52%
- Manufacturing – 58%
- Engineering / Architecture – 63%
- Real estate agents – 76%
- Business services – 85%
- Child daycare – 98%