Another New IJ Report Highlights Importance of Home-Based Businesses

April 1, 2022

Home-based businesses provide flexibility and opportunity—particularly during tough times like the COVID-19 pandemic—but all too often regulations stand in their way. Indeed, some cities effectively outlaw entire categories of home-based businesses. 

Now IJ has a new tool for advocating on behalf of hardworking home-based entrepreneurs: our new report, Work Entrepreneur from Home. The result of a survey of 1,902 home-business owners, the report highlights the importance of home-based businesses—and how draconian regulations hold them back.

Key findings include: 

  • One in three respondents started their businesses after pandemic-related job losses, and one in four did so after pandemic-related business closures.
  • These ventures can be anything from a hobby to a side gig to a full-time job, and they operate in industries as diverse as baking, cattle ranching, and financial services.
  • Most home-based businesses are modest, costing just $1,200 to start and generating less than $15,000 annually. However, nearly half of respondents planned to expand.
  • Owners reported it took more than two months to jump through the regulatory hoops required to start their businesses, and they rated paying high permit fees and navigating complex local rules to get started as the most onerous regulations they faced. 

 With home-based work now easier and more popular than ever, it is likely that more entrepreneurs will build their businesses at home, even after the pandemic subsides. And IJ will be using this research to persuade cities to help people help themselves—during tough times and ordinary times—by easing regulatory burdens that get in the way of home-based entrepreneurs.

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