One factor that many attribute as an engine of our entrepreneurial economy in the US is our culture, which has over time supported individualism, creativity, and self-determination. A study released on Wednesday by the SBA Office of Advocacy shows evidence of our grass-root entrepreneurial spirit. America's 1.6 million homebased sole proprietors generate $533 billion in annual revenue. The report finds that the average homebased sole proprietor earned $22,569 in net income on about $62,523 in revenues. These businesses are primarily service related, including administrative support services, information services and construction related services.
Add to this the 1.9 million non-homebased sole proprietorships (those that rent space) that generate an average of $38,243 in net profits on $178,194 in revenues and we are talking a major and growing force in this economy.
These sole proprietorships are the breeding ground for many of our future corporations and LLCs, so the growth and success of these smallest of our small businesses is vital.
