HOME-BASED BUSINESS: A PHENOMENON OF GROWING ECONOMIC IMPORTANCE

Abstract

ABSTRACT One of the fastest growing sectors of the North American economy is the “home-based enterprise”. This paper focuses on one component of this sector—the self-employed or the “home-based business”. Our study is based on a sample of firms recently registered or incorporated in Canada. The importance of the home-based sector is highlighted by the fact that over 71 per cent of all respondents indicated their principal place of business was their home. The rapid growth of this sector can be attributed primarily to the need to save money and the desire of many respondents to minimize the risk of starting a business of their own. A number of other factors have contributed to this growth. For many people, the decision to operate from their homes appears to be a lifestyle decision reflecting their personal career preferences and not one based principally on economic or financial considerations. As the sector continues to grow, it is imperative that government and other support system providers develop policies and programs to deal with the specific needs and problems faced by the home-based business.