Let's dig into the latest home-based entrepreneur statistics for 2023 and pull out some key insights into what these stats mean for new home business entrepreneurs.
The Pandemic Motivated People to Go for It
We might not have arrived at this moment of a home-business boom if it weren’t for the pandemic. In fact, 60% of new entrepreneurs spent time during the COVID lockdown learning about how to start and run a business.
We tend to think of the COVID-19 pandemic as having had a negative impact on small businesses, with many businesses reporting a loss of revenue and labor shortages in 2020 and 2021.
However, for those workers who were motivated to become home-based entrepreneurs, the pandemic afforded them time to do the research and preparations necessary to prepare for the change.
In addition, Americans saved more money during COVID-19 lockdowns (and were still reporting higher savings in 2022), giving them the ability to invest in a home-based business. And those willing to invest saw great results. Our recent survey found that 65% of small businesses report being better off now than they were just a year ago.
People Want to Be Their Own Boss
If you’ve ever dreamed of being your own boss, then you’re in good company. It’s a dream shared by many home-based entrepreneurs, and it means you’ll be better motivated to stick with your work, happier in your work, and more fulfilled by pursuing that dream than you might have been if you stayed in a different job.
In fact, 29% of people who opened their own businesses did so because they wanted to become their own bosses.
If you have the dream to work for yourself, then consider all the ways that motivation will propel you to work harder, be more fulfilled and achieve success.
Half of All Small Businesses Start at Home
According to The U.S. Small Business Association, 50% of all small businesses begin at home. (The SBA also reports that 60% of all businesses without staff are home-based.) With 32.5 million small businesses, that means about 19 million are home-based.
Again, this statistic shows you’re in good company! Remember that Apple was once a home-based business, as well as Ford Motor Company, Hershey’s and Mary Kay Cosmetics. Many people may worry that starting a home-based business is too risky or out of their comfort zone at first.
It's clear that starting your own business from home is more common than you might expect. Your neighborhood could be full of home-based entrepreneurs who are succeeding in business on their own terms, working from home and perhaps selling online.
Most Home-Based Businesses Cost Under $5K to Start
You might think that you need lots of money to start a business. But most home-based businesses are started for less than $5,000, with micro-businesses costing as low as $3,000. It’s true that having some startup capital is often a significant advantage — it can give you a safety net to use while you’re figuring out how to become profitable, even if you make some mistakes along the way. It's possible to look for funding as well — you could even apply for our entrepreneur grant.
However, this is an optimistic sign that if you have a good home-based business idea and are willing to work hard, you can start making money while operating a business from home, even without a lot of startup capital.
Women Are More Likely to Have Home-Based Businesses
Many recent surveys of home-based entrepreneurs show the same fact: Women are more likely to have a home-based business than men. An AXIS Insurance survey showed that almost two-thirds of home-based business owners across the U.S. in Q4 2021 were women. The survey also showed that 42% of women started their own businesses to pursue a passion or an opportunity they did not feel was possible before this moment in history.
As we look ahead to 2023, the forecast for home-based businesses is looking steady and strong. The continuous rise in remote work, the Great Rethink, and the time and money people saved during the pandemic all combine to make the immediate future a friendly climate for home-based businesses.
If you’re ready to start your own successful home-based business but are unsure where to start, consider downloading our complete “Start Your Business Checklist.”
We’re experts at incorporating LLCs and corporations, and we’ve learned a lot about how to start and run a successful business. We wanted to make it super easy for new entrepreneurs to get started, so we put together this easy-to-understand business checklist for you.