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SALT LAKE CITY -- Even while people still feel like the economy is nowhere near recovered, people are increasingly making business ventures on their own.
New Census data shows that more than half of US businesses, 51.6 percent, are operated from home now.
"With the economy downturn in the last few years, many people who used to work for someone else take the opportunity to work from their homes," Steve Price, deputy district director of the Small Business Administration said. "With the impact of the Internet, you don't need a place anymore. It's an economic reality to [work from home] because most people have the space, a computer, a phone; most people can just start from the home."
The startup costs and overhead is comparatively inexpensive to traditional small businesses, the average small business loan ranges between $8,000 and $13,000, but it can also mean inconsistent working hours, erasing the line between being at work and home and distractions not offered at the office.
Utah County artist and blogger Caitlin Connolly of Hue and Hum chooses to work at home with her "dusty old garage" functioning as her studio. Her mother was a music teacher who taught from home, which she credits as making it a natural fit for her.
"She was able to mix her passions with her work while staying at home," Connolly said. "It didn't have to be anywhere else. It feels natural for me to follow my dreams within my own home as well... I like the closeness of it. I like that it's all in the same group for me and that it's not disconnected."
For those who want a connection between work and home, it works well. But for those who just don't like working for others or in the traditional office setting, those like Colt Bowden of Voilà! Press it helps him to enjoy his work.
"It just makes me sick sitting down so much. [Working for myself from home] helps me be unique and keep in touch with my creative side," Bowden said.
From the Census: Half of U.S. Businesses Operated from the Home
From Mercer: Inside Employees Minds
The Small Business Administration
From Washington Post: One-third of U.S. workers ready to quit
Hiscox insurance underwriters based in UK conducted a study that identified reasons for people's desire to start their own business which included creative liberty. "Our research shows that entrepreneurs are starting businesses to take control of their future, whether they have experienced a redundancy or want to pursue their dreams. They don't always need to reinvent the wheel, but offer a fresh perspective on an existing idea - it's often about hard graft and differentiating yourself from the competition," said Alan Thomas, small business insurance expert at Hiscox.
Further, a Mercer study found that one-third of workers are ready to quit, namely young workers ages 34 and younger. Of those 25 to 34, 40 percent feel that way and 44 percent of those 24 and younger feel similarly.
Though the study found that workers were satisfied with their base pay and benefits and even found improvements in retirement preparation help, promotions going to qualified individuals and matching pay to performance, the largest complaint may contribute to some starting up their own business.
According to the Wall Street Journal, "Employees see a ‘disconnect' between what employers are promising and what they are delivering," said Mindy Fox, a senior partner at Mercer in a statement. "Organizations should re-examine their deals - both the traditional and non-traditional elements - then support them with effective administration and consistent, authentic communication that fosters a sense of belonging and helps employees make better rewards choices and career decisions."
Using blogging and social networking as part of their business model, it has become easier to maintain that authentic communication and sense of belonging outside of the traditional office. Many use the mediums as a way to meet clients, share products and even offer special "insider" deals.
"With a blog, you can take a very distant experience and make it a very personal experience," Connelly said. "It's a tool that anyone can utilize and you can grow so quickly with it. I think people feel invested in my art in part because of my blog…It's a nice window into people's life. Sometimes I write about a painting and sometimes I write about my favorite restaurant. Then people are invested in you as a friend."
Financial assistance has become easier to access as well. The SBA has set up a loan guarantee program and access to free business counselors, and peer-to-peer loans have become another popular option. Free online programs reduce the cost of software, too.
