Barbara's research on the
home-business and crafts industries:
A History of the Home Business Industry from 1981 to 1996
- adapted from Barbara's record of the dozens of home business
conferences and workshops in which she was a speaker during these years. This
historical document illustrates the intense educational efforts being made at
that time by various states and home business organizations, the SBA and small
business development centers and other government agencies, and by private
industry to help countless thousands of individuals start or expand businesses
at home in both the U.S. and Canada. (PDF document)
A Brief History of the Crafts Industry. Shows the direct connection between the
growth of today's professional handcrafts industry and the retail hobbycrafts supply industry,
from 1940 to present day.
The Crafts Industry and Its Importance to the Economy. In 2001, the Craft
Organization Directors Association (CODA) made a study of 84,000 craftspeople
who earned their living from crafts. Read article here.
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Home-Business
Industry
Research and Reports
National survey finds nearly 60 percent of homebased business owners are without
insurance.
According to a survey of more than a thousand home-business owners commissioned by the Independent
Insurance Agents & Brokers of America, most of America's
11 million home-based businesses do not have proper business insurance coverage.
Nearly 40 percent of home-business owners say they thought they were protected
by some other type of coverage, while almost 30 percent say their businesses are too
small to insure. Nearly 20 percent could not give a reason for not having insurance.
"Proper insurance coverage can protect business owners from losses that can devastate a home-based
business," says Madelyn Flannagan, IIABA vice president of education and research.
"By not having business insurance, home-based business owners are at risk for significant financial losses associated with
theft, accidental damage, natural disasters, vehicle accidents and liability if an employee suffers
an injury while on the job or a business guest is hurt while visiting the home-based business.
Homeowners' insurance normally does not provide protection in these
situations."
"Home-Based Business and Government
Regulations." This government report, written by Microeconomic Applications, Inc. and funded by
SBA's Office of Advocacy, documents zoning problems of home-based
businesses. According to this report, 53 percent of home-based businesses
are coping with daunting zoning restrictions from both federal and local regulations.
They are also having difficulty in complying with complex and confusing IRS rules for
home office and equipment deductions.
The report, which examines state and local regulations in Arizona, California, Illinois, Iowa, Pennsylvania, and
Vermont, finds that the most restrictive regulations are at the local zoning level. It also notes that
some states have begun to enact legislation supportive of home-based businesses. Vermont, Maryland,
and California were cited for such legislation.
At the federal level, the report finds that IRS regulations penalize
home-based businesses in their treatment of deductions. In particular,
claiming a home-office deduction is complex; the depreciation is spread over an unrealistically long
time, and returning the space to full residential use generally entails penalties. A full copy of the report is
available
as a PDF document. For several other older surveys on the home business
industry, search for those keywords on the SBA.gov website.
"eBiz: Strategies for Small Business Success."
An excellent report by
Joanne Pratt. "Unlike the so-called 'dot.coms,'
65 percent of small niche firms make a profit or cover the costs of their Web
sites," says Pratt in the executive summary of this report. "The more
innovative entrepreneurs--the early adopters--see the Internet as a way to
market niche products and reach distant customers in ways that were not
available in the past." You can read the full report on the
SBA.gov
Other Home-Business Studies by Joanne Pratt
The Impact of Location on Net Income: A Comparison of
Homebased and Non-homebased Sole Proprietors. This 2006 SBA study compared revenues, deductible costs and net income of 1.6 million homebased businesses and 1.9 million non-homebased firms. It revealed that the
most profitable homebased business are those in wholesale trade, particularly
durable goods and travel accommodations such as bed and breakfasts.
(Read full report HERE.)
Homebased Business: the Hidden Economy. This 1999 study was based on a sample of 125,000 self-employed business owners
that filed Schedule C, partnership, or S corporation tax returns in 1992. "The
analysis found that people become self-employed because they want to be their
own boss as well as earn income," says Pratt. "Those wanting primary income are
more likely to choose a non-residential location, work long hours throughout the
year and hire employees. In comparison, more homebased business owners want a
second income, are less likely to hire employees and tend to work fewer hours
and weeks of the year."
(Read full report HERE.)
Visit Joanne
Pratt's website for a complete list of all the other research reports she has
authored on home business, co-preneurs, telemarketing, home office trends, and
mobile workers.
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by Barbara Brabec
All Rights Reserved
Barbara Brabec's World
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