[Hidden-tech] The Impact of Location on Net Income: A Comparison of Homebased and Non-Homebased Sole Proprietors
Steven G. Caron
Steve at OldSchoolCapital.com
Wed May 31 13:11:43 EDT 2006
Interesting info.
Best,
Steven G. Caron
Managing Director
Old School Capital LLC
319 South Main Street
Andover, Massachusetts 01810
Telephone (978) 430-8260
Telefax: (978) 418-0797
www.OldSchoolCapital.com
-----Original Message-----
From: Office of Advocacy , Economic Research [mailto:advocacy at SBA.GOV]
Sent: Wednesday, May 31, 2006 11:38 AM
To: ADVOCACYRESEARCH at newganges.sba.gov
Subject: The Impact of Location on Net Income: A Comparison of Homebased and
Non-Homebased Sole Proprietors
America's homebased sole proprietors generate $102 billion in annual
revenue, according to a study by the Office of Advocacy of the U.S. Small
Business Administration. The study details revenues, expenses, and income
for both homebased and non-homebased sole proprietors by industrial sector
by examining federal income tax data from year 2002 sole proprietorship
returns (Schedule C).
The report presents a comparison of homebased and non-homebased sole
proprietorships. For example, it finds that the average homebased sole
proprietor earned $22,569 in net income while their non-homebased
counterparts earned $38,243. Nonetheless, due to lower expenses,
particularly in rent and labor costs, the average homebased sole proprietor
consistently gained a higher return on gross revenues at 36 percent, versus
21 percent for the non-homebased.
The findings also show that the greatest percent of homebased sole
proprietorships was in the Administrative, Support, and Waste Management;
Information; and Construction sectors. For the non-homebased, the
percentage was greatest in the Accommodation and Food Services; All Other
Services; and Finance and Insurance sectors.
The report 'The Impact of Location on Net Income: A Comparison of Homebased
and Non-Homebased Sole Proprietors,' was authored by Joanne H. Pratt with
funding from the Office of Advocacy. For a copy of this study visit:
http://www.sba.gov/advo/research/rs275tot.pdf and the research summary can
be found at http://www.sba.gov/advo/research/rs275.pdf.
Should you need further information, please feel free to contact Ying Lowery
at: (202)205-6947 or by email at advocacy at sba.gov.
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