Relevance

Issue or Problem Area:
The 1990s have been called the "Decade of the Entrepreneur." Changes in the economy and the family have precipitated changes in attitudes toward the separation of the home from the work place, resulting in the rapid growth of home-based businesses. In addition, the change from an industrial based economy to an information and service based economy, and new communication technologies have dramatically increased work-at-home opportunities. Home-based businesses are now recognized as a viable source of new jobs and economic growth. People are choosing to create their own jobs at home rather than seek employment elsewhere. According to the SBA, there are approximately 24 million small businesses in the U.S. According to a report by the Census Bureau, nearly half of the small businesses in the U.S. are home-based. Small business ownership is the tool millions of Americans use to enter the economic and social mainstream. There were 885,416 new firms reporting employees in 1997 the highest ever and a 5.1 percent increase over the record in 1996. In 1997, the U.S. economy created nearly 3 million new jobs, with six out of 10 of the industries adding new jobs being small-business-dominated industries. Small firms hire a larger proportion of employees who are younger workers, older workers, women or workers who prefer to work part-time. Small businesses also provide 67 percent of workers with their first jobs and initial on-the-job training in basic skills.

Small businesses:

• provide virtually all of the net new jobs added to the economy.
• represent 99.7 percent of all employers.
• employ 53 percent of the private work force.
• employ 38 percent of the private workers in high-tech occupations.
• provide 47 percent of all sales in the country.
• provide 55 percent of innovations.
• account for 35 percent of federal contract dollars.
• are home-based 53 percent of the time and are franchises 3 percent of the time.
• represent 96 percent of all US exporters.

Users:
This program will involve state Extension specialists, county Extension staff and collaboration with personnel of other business-oriented support agencies, e.g., economic development boards, chambers of commerce, and Small Business Development Centers, in addressing the needs of small and home-based business.

Quality

Subject Matter:
Advertising and promotion
Business bank accounts and loans
Business plan development
E-commerce
Home office space and equipment
Impact of business on family
Insurance needs
Legal issues
Management
Marketing
Pricing products and services
Procurement
Professionalism
Zoning, licensing, and permits

Delivery Methods:
Business management seminars, workshops, and short courses (using on-site and distance learning delivery) covering topics such as startup requirements, analyzing financial statements, securing funds, etc.

Seminars and workshops (using on-site and distance learning delivery) covering business-specific interests of targeted
participants, e.g., Food as a Business, Catering as a Business, Sewing as a Business, Child Care As A Business, etc.

One-on-one consultations with clients interested in starting or expanding a home-based or small businesses.

Electronic newsletters, publications, and Internet short courses covering topics relevant to business startups and expansions.

Customers, Audiences:
Entrepreneurs
Small business owners
Rural Communities
Economic developers
Policy makers
Business assistance providers

Outcomes

Impacts:

Users:

Public outcomes: increased employment and generation of higher revenue streams available through increased ad valorem and sales tax bases.

Private outcomes: enhanced opportunity for economic returns and achievement of personal goals through business ownership and operation.

• Clientele interested in exploring the potential for a home-based or small business will have access to information and materials to aid in making a sound decision.
  
• Small and home-based business owners will better understand basic business management principles, e.g., cost accounting and interpretation of financial statements.
  
• Business service providers will be encouraged to collaborate in providing assessment and analytical assistance to clientele.
  
• Entrepreneurs will implement successful business startup and expansion strategies.
  
• Employment percentages in non-metropolitan areas will increase.
  
• Failure rates for small businesses will decline following participation in educational programs.

Indicators:

Number of participants attending workshops, seminars and one-on-one consultations.
Number of new business startups and/or expansions.
Number of jobs created by startups or expansions.
Increases in capital investment for buildings and equipment.
Increased state/city/county business-related tax base.
Increased funding for business service assistance programs.

Evaluation Data or Information (if available)