Data extracted from the 2002 Survey of Business Owners (SBO) reveals that almost half of all businesses (49%) in the United States are now home-based.  More than 6-in-10 owners used their own money to start the business.*  What does this mean for those considering a home-based business?

The survey reveals a surprising trend in the home business arena – more and more entrepreneurs are foregoing the normal business route and not borrowing for start-up costs from a financial institution.  Instead, the majority of new businesses are being formed from personal funds or loans from friends and family.  Consider the following facts*:

• People using their own money or family assets for business startups included 77 percent for businesses with paid employees and 59 percent for businesses with no paid employees.
• Nearly 3-in-10 (28 percent) of all entrepreneurs started or acquired their business with no capital at all.
• Nearly 1-in-10 U.S. businesses -- both employer firms and non-employer firms -- were started by owners who used personal or business credit cards to finance the startup or acquisition.

* Source: U.S. Census Bureau