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Q: Business Statistics ( Answered,   0 Comments )
Subject: Business Statistics
Category: Business and Money > Economics
Asked by: taylorc-ga
List Price: $15.00
Posted: 19 Apr 2006 08:45 PDT
Expires: 19 May 2006 08:45 PDT
Question ID: 720596
I am helping in the revision of a book and many of the facts used are
out of date. Most of these were current in 1994-1995 so if we could
get the most current information for the new edition that would be

9. By the end of 1995, 44 percent of all U.S. households had an
income-producing or after-hours home office, generating revenue of
approximately $382.5 billion annually
Subject: Re: Business Statistics
Answered By: czh-ga on 19 Apr 2006 15:56 PDT
Hello taylorc-ga,

I?ve spent much more time on your question than I normally would for
this price because the numbers you gave simply don?t add up in
comparison to the current information I found. The 44 percent of
households having and at-home office in 1995 is considerably higher
than what the current market research reports show or project for the
next few years.

My research showed that IDC monitors the SOHO market very regularly
and issues updated reports almost every year. I believe their research
reports are highly reputable. Unfortunately, they?re also extremely
expensive so it?s difficult to get detailed information. Selected
highlights from the IDC reports are available based on their press
releases and I was able to find several that provide fairly up-to-date
information for you. The most recent report shows that, ?In 2005,
there were 34.9 million home-office households.?

This number has to be translated into a percent to make it comparable
to your figures. The 2000 US Census shows 105,480,101 households.
Using very rough estimates and rounded figures for a quick calculation
(35m/108m) about 32 percent of households had a home office.

Since the figures I came up with are so much lower than the ones you
cited, I searched to find your sources. I located several citations of
your exact phrases and discovered that they came from a survey by a
consulting company named BIS Strategic Decisions. The company is no
longer in business and I could not locate the report that is the
source of your numbers.

I also could not find a comparable figure for the 382.5 billion
revenue estimate. I have no idea how this figure was arrived at.
Searching for current comparable figures also proved tough. I was able
to gather some information about the income levels of households with
home offices. I found several articles from vendors wanting to sell to
this market.

I?m not clear on what point you?re trying to make with these numbers.
One possibility is that you want to emphasize that households with
home offices have good incomes and/or are likely to spend more and are
a source of revenue for certain classes of vendors.

Below I?ve organized my findings so you can continue your research
based on the contradictory facts I?ve uncovered.

All the best.

~ czh ~


U.S. Home Office 2005-2009 Forecast 
Price $4500 -- May 2005 -- Doc #33365

"Home offices continue to represent a major opportunity for technology
providers, based on the fact that there are more than 33 million of
these households, and the fact that for many products they are early
adopters," says Merle Sandler, senior research analyst in the SMB and
Home Office programs at IDC.

Home Office Design: Creating Professional Surroundings at Home
Apr 10, 2006

According to the IDC, a provider of technology intelligence, market
data and industry analysis, almost one in three households in America
have some form of home office. ?In 2005, there were 34.9 million
home-office households,? said Merle Sandler, senior research analyst
for the SMB and home-office programs. ?The number of home-office
households is expected to rise... at a faster rate than the growth
rate for households in general.?

Homebased Business 

Number of U.S. homebased businesses in 2005:
Income-generating homebasedbusinesses.............13.8 million
As primary income-generating.......................9.7 million
As part-time income-generating.....................4.2 million
Source: IDC, "U.S. Home Office 2004-2008 Forecast," March 2004

Home Office vs. Small Business ? A Closer Look
May 2005

The number of income-generating households in the U.S. will grow from
13.2 million in 2003 to an estimated 14.5 million by 2008, a compound
annual growth rate of 1.9%, according to IDC. Though hardly torrid,
this growth rate is peppier than IDC had anticipated. During the
downturn of 2001- 2003, growth in the number of income-generating
households fell off the charts. But growth has returned, with
approximately 400,000 new home offices and 100,000 new small
businesses appearing in the U.S. each year.

IDC: Home Office Households Approach 37 Million in 2000 as Internet 
September 5, 2000 
U.S. Home Office Forecast and Analysis: 1999-2004,

The growing number of home office households will continue to spark
advanced technology use in the home, according to IDC. The Framingham,
Mass.-based market research firm says the number of households with
some form of home office activity is now approaching 37 million and
will come close to 39 million in just two years.

New Travel Agents

According to the Department of Labor statistics over 13 million people
operate a home-based business. And over 1,500 new home-based
businesses are opened every day.

TOP SECRET: Entrepreneur forum on steroids

According to the latest SBA figures, there are more than 13 million
home-based businesses in the U.S.

Working from Home

According to IDC, a top national research firm, there are between 34.3
million and 36.6 million home office households in the United States
alone. These include income-generating home offices (18.8 million to
20.3 million) with the rest being made up of corporate telecommuter
households. - *SBA

89% with household incomes greater than $80,000 have a home office
compared to 14% of those with incomes below $25,000. - Find/SVP

A recent IDC survey indicates that the average income for
income-generating home office households is $63,000 a year.

Source: Growth of Home Working Households: 1999-2001

Corporate HQ, 2000s Style
August 11, 2005

According to IDC, a top national research firm, there are between 34.3
million and 36.6 million home office households in the United States
alone. They also conducted a recent survey indicating that the average
income for income-generating home office households is $63,000 a year.

A November 2000 report from the SBA's Office of Advocacy showed that
in 2000 nearly 20,000 entrepreneurs grossed more than $1 million
operating from a home-based environment. Further, they estimated that
the number of U.S. households that had a home-based business then
exceeded 12 percent. Newsweek magazine has estimated that, by 2005,
50% of the households in the United States will be involved in a
home-based business.

And these businesses enjoy a healthy rate of success. About 70% of
home-based businesses will last over a three-year period, compared to
29% of other business ventures, according to the Home-Based Business
Institute. Find/SVP reports that 89% with household incomes greater
than $80,000 have a home office compared to 14% of those with incomes
below $25,000.

Home Office Market Research Reports

Households, 2000           105,480,101

Homeward Bound 

According to data collected by New York research firm Link Resources,
in 1993 there were nearly 36 million "work-at-home" households in the
U.S., a 6.5 percent increase over the previous year. By the end of
1994, that figure had increased another 14 percent to 41.1 million. Of
those 41.1 million home-based workers, 24.3 million were
self-employed. Another 7.6 million were company employees who
"telecom-mute" from home, while 9.2 million were employees who put in
after-hours time in home offices.
This growth in home-based work arrangements shows no signs of slowing
down. It's estimated that by the end of 1995, 44 percent of all U.S.
households will have an income-generating or after-hours home office
[source: BIS Strategic Decisions].


By the end of 1995, BIS Strategic Decisions estimated that 44 percent
of all U.S. households will have an ?income-generating or after-hours
home office,? totaling 42.3 million participants generating revenue of
approximately $382.5 billion.

Your Own Home Business Are There Any Benefits?


Income-Generating Home Offices
By the end of 1995, "44 percent of all U.S. households" had 
total U.S. households
income-generating home offices  generate millions
household income "home office" OR soho
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