The New-Economy Almanac

• No one knows with certainty how many people are running businesses from their homes. Estimates range from 5.6 million to 30.7 million. The most reasonable estimates are closer to 15 million.
• Almost half of last year's new enterprises took form in their owners' homes.
• No one knows how long home-based start-ups stay home-based.

How Many Home-Based Workers?

 199112 million199616 millionSource: Find/SVP. 

Estimates of the number of self-employed home-based workers continue to rise.

Who's creating jobs, and who isn't?

• Small companies in every sector of the U.S. economy are growing. Big ones aren't.
• The larger the company, the more employment growth slowed.
• The home health-care industry grew the fastest.

Employment by Sector, 1995

 Percentage oftotal employmentManufacturing20%Trade26%Finance, insurance, real estate8%Services32%Other14% 

Job Growth by Sector, 1991-1996

 All companiesManufacturing0.4%Trade2.2%Finance, insurance, real estate -0.3%Services3.4%Other0.8% 

Companies with 1-99 employees in 1991

 Manufacturing9.9%Trade3.9%Finance, insurance, real estate3.0%Services7.2%Other4.4% 

Companies with 100 or more employees in 1991

 Manufacturing -2.4%Trade0.2%Finance, insurance, real estate -2.2%Services0.8%Other -3.2% 

Employment by Company Size, 1995

 Number ofPercentage ofemployees in 1991total employment1-1930 -9917%100 or more53% 

Job Growth by Company Size, 1991-1995

 Number of Changeemployees in 1991 by 19951-199 -991%100-4,9990%5,000+ -2% 

New jobs were in the small, smaller, and smallest companies.

Employment by Company Age, 1995

 YearsPercentage oftotal employment*0-46%5-1423%15-2924%30+46%*Because of rounding, numbers do not add up to 100% 

Job Growth by Company Age, 1991-1995

 Company ageChange by 1995in 19910-4 years13%5-146%15-291%30+ -1% 

Sources: Who's Creating Jobs? and Corporate Almanac, Cognetics Inc., Cambridge, Mass., 1996

The home health-care industry nearly doubled, growing from 344,500 to 657,500. Its 91% growth rate ranks it in first place, above the 77% growth rate of the personnel-supply-services industry.

The rubber and plastic footwear industry is a mere shadow of its 1991 self. In only six years, employment declined 49%, to a scant 5,600.