Home Businesses – Broken Down By Industry

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.

home based businesses - by industry

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.

Here is some additional data used in the chart:
  • Construction -24%
  • Motor freight – 44%
  • Insurance agents – 52%
  • Manufacturing – 58%
  • Engineering / Architecture – 63%
  • Real estate agents – 76%
  • Business services – 85%
  • Child daycare – 98%

(Source: Table 4-2 Home based Business – The Hidden Economy)