Layoffs are leading to growth in the small business sector including home business as some who have gotten their pink slips or cannot find work are turning to self-employment.
According to a report from Kiplinger Small Business, franchises are also experiencing increased popularity as some laid off workers turn entrepreneurial.
But home based business especially, which already makes up 52 percent of small business in the US, sees growth with economic downturns, as economist Brian Headd of the Small Business Administration explains:
Non-employer firms have the highest growth when the labor market struggles and the lowest growth when the labor market is doing well.
Look for home based business to grow in the near future and, of course, businesses that start in the living room could transform into more traditional small businesses and continue to grow as the economy recovers.
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