A home business (or "home-based business" or "HBB") is a small business that operates from the business owner's home office. In addition to location, home businesses are usually defined by having a very small number of employees, usually all immediate family of the business owner, in which case it is also a family business. Home businesses generally lack shop frontage, customer parking and street advertising signs. Such businesses are sometimes prohibited by residential zoning regulations.[1]
The prospect of working from home has gained credibility over the years. Home offices can now compete with small commercial businesses and save on rent in the process. Faxes, high speed internet connections, dedicated home telephone lines, and cell phones help to make a home-based business a reality. Earlier home businesses had been where families lived on the second floor of their house while converting the first floor into a store, whereupon close of business they would secure the first floor and retire to the upper floors. This type of home business is still done in some rural areas.
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The concept of homebased business, as opposed to the previous terminology of "cottage industry", first appeared in 1978. The phrase was coined by Marion Behr, the originator of a study to find out what businesses women throughout America were carrying on in their homes. The preview edition of Enterprising Women[1] wrote about the search to gather information pertaining to home workers throughout the nation. Numerous magazines [2][3] and organizations helped to disseminate information regarding the study. Ultimately 40,000 letters were received, many indicating the problems the respondents experienced while carrying on businesses from their homes. The problems were analyzed and confronted in two ways. In 1980 the National Alliance of Homebased Businesswomen was founded to combat the isolation expressed by the respondents as well as to fight the laws which made conducting their businesses difficult.[4][5][6][7] Then Women Working Home: The Homebased Guide and Directory by Marion Behr and Wendy Lazar was published.[8] It contained the stories of many women who ran home-based businesses throughout the country in many diverse fields, as well as information on business formation, conduct and compliance with the law. It sold 50,000 copies. During this time many national magazines wrote about these issues.[9][10][11][12][13] At the White House Conference on Small Business in 1986, one of the major resolutions was a recommendation favoring lifting restrictions on home-based business.[14]
Numerous businesses, initially started as home based, have expanded to become significantly larger operations. These include such businesses and people as:
Apple Computer, started by Steve Jobs and Steve Wozniak from Steve's garage
Hewlett-Packard, whose original location is now a museum, the HP Garage
Hurricane Electric, California based ISP backbone provider
Southwest Technical Products Corporation, founded by Daniel Meyer
James Avery Craftsman, Christian themed jewelry maker
Genuine Scooters, Chicago motorscooter manufacturer
Amigo Mobility International Inc, Michigan based mobility scooter manufacturer, founded by Allan R. Thieme
Tony Chachere's Original Creole Seasoning, founded by Tony Chachere
Lindos Electronics, British audio quality measurement equipment manufacturer
Marion Cox, NASCAR car owner/designer
Ausenco Vector, California civil engineering firm
Rembrandt Group, South African tobacco conglomerate founded by Anton Rupert
Koorong, Australian Christian bookstore chain
Joel L. Malter, coin and antiquities dealer
Real Goods, California solar energy installation company and green business retailer
Endress+Hauser, instrumentation company based in Switzerland
Press-A-Print, US printing company
Perdomo, Florida cigar distributor
Robert A. Kleist and Gordon Barrus, inventors of the Line matrix printer
Borland Software, California software company founded by Philippe Kahn
John P. Moon, engineer working with magnetic materials iiNet, Australian internet service provider
J. C. Bamford, UK digging equipment manufacturer started from a rented garage
FLEXcon, Massachusetts Pressure-sensitive adhesive film manufacturer
Holiday Magic, multi level marketer started from the purchase of another home based business
Amazon.com, internet retailer founded by Jeff Bezos
1.^ Jersey Woman, Sept/Oct 1981 p. 45
2.^ Changing Times, May 1984, At Work, p. 26
3.^ NJ Success, Sept 1982, The Businesswoman
4.^ Family Circle, July 1981, Gerri Hirshey p. 80-83
5.^ Jersey Woman, Sept/Oct 1981 p. 45
6.^ Testimony:US Labor Dept (rm 2508) Jan 25, 1984
7.^ US Senate, Committee on Labor and Human Resources. re: S2145 Proposals to amend Fair Labor Standards Act:Testimony of Sen. William S. Cohen, Mary Clement, Audrey Pudvah, Sol C. Chaiken, Marion R. Behr, Cora Lee Kern, Mark De Bernardo; February 9, 1984
8.^ WWH Press, 1st Ed 1981, 2nd Ed 1983
9.^ Handmade, Fall 1892
10.^ Parents, Sept 1983, Enterprising Mothers, Phyllis Gilles p. 47,54
11.^ Changing Times, Running a Business from Home, Feb 1983, p. 26, 51
12.^ Inc, Oct 1984, Home is where the work is, p. 39
13.^ New Woman, Jan 1985, Who’s News, Vivian Doering, p. 20
14.^ Proceedings of the White House Conference on Small Business 1986, Resolution 21