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53% of Small Business Are Home Based
Home-based businesses make up 53 percent of the small business population and serve as incubators for many growing businesses. Home-based businesses face a unique regulatory environment that can restrain their expansion and growth. Notable regulatory barriers include complex IRS rules on home office deductions and the complicated test for determining independent contractor status. Moreover, local zoning laws may also discriminate against home-based businesses.
This interesting tidbit is from The Small Business Economy 2004 (PDF), a report released yesterday by the Office of Advocacy of the Small Business Administration, which describes the state of small business in the United States.
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