The U.S. Small Business Administration authorized a study of home-based businesses called “The Hidden Economy” in 2000. Among the findings:

        • Home-based businesses represent 52 percent of all firms and provide 10 percent of the total receipts of the economy, about $314 billion in 1992.

        • The average receipts of all home-based firms were in the $40,000 range. Beginning at about $50,000, an increasing percentage of companies leased office space.

        • Owners of home-based businesses work on average 26 to 35 hours each week while other business owners worked on average about 35 to 43 hours each week.

        • One-third of all home-based firms use personal assets to start, while 46 percent used personal savings.

        • Fewer than 5 percent of home-based businesses ever grow and leave the home for commercial space.

        • Over half of all home-based businesses survive five years. Firms that close usually lack cash or access to a business loan.

        • Between 1992-1996, about 85 percent of firms with paid employees surveyed, compared with 51 percent of those that had no paid employees.

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