Escape from Cubicle Hell

From retirement-averse baby boomers to Gen Y-ers disillusioned with the corporate world, a growing number of people are starting businesses out of their homes in a wide range of industries.

The latest U.S. Census statistics on non-employer firms -- defined to include home-based businesses and those run by one or more individuals -- show that the number of self-employed reached 20.4 million in 2005, an increase of 4.4 percent from the previous year. Additionally, home-based businesses constitute 53 percent of all small businesses in the United States, according to NASE.

Experts are predicting that economic factors will drive the growth of home-based businesses even farther in 2008. "I believe we're heading into a difficult period," says Terri Lonier, author and founder of workingsolo.com. "Traditionally, in these times, more people turn to self-employment because traditional jobs are more difficult to come by."

But Americans are not just leaving the workplace because their fear of the ax has heightened. The standards that have defined the American workplace for years are finally being uprooted. Not only are fewer Americans working out of the office to avoid long commutes, but the structure of the 9-to-5 workday has also largely disappeared. More people are working non-traditional hours in order to spend time with their families, and many are taking advantage of increasingly mobile technology, allowing them to work not just at home, but virtually anywhere.

"Technology is not only there in terms of functionality, but it has dropped in price," Pratt says. "Now, anyone with any kind of entrepreneurial interest can functionally operate a business, and on their own terms."

The ease of connectivity is also allowing people, particularly baby boomers, to enjoy the benefits of their retirement while also having the freedom to run a business. "It used to be [in retirement] you had a full life of work, got your gold watch and traveled," Pratt says. "Now you put your BlackBerry in your pocket and go travel."

One of the trends experts are observing among boomers is that they no longer want a traditional retirement path. Instead, many see their 60s as a time to finally pursue their passions, and as such, they are increasingly joining the ranks of home-based business owners.

According to Pratt, many baby boomers are entering the retirement era with a dark image of corporate America, which is affecting their decision to be self-employed. "The employer was supposed to take care of you in terms of retirement and health," Pratt says. "If employers are not doing that anymore, is there incentive to have someone telling you what to do, or is there incentive to take your knowledge and start a business?"

On the other end of the spectrum, young people -- Generations X and Y -- are also questioning the workforce they are about to enter. "The younger demographic is finding that they don't want to go to work for somebody," says Fairbrother of the NASE. Instead, they are creating opportunities for themselves outside of the traditional workplace.

For a generation that was raised on computers and the Internet, Lonier says the growth of younger home-based entrepreneurs is not all that surprising. "This group grew up in households where being self-employed or having multiple jobs within one career was very common," she says. "They see having their own business and being entrepreneurial as a very natural extension of their personal interests."

From an article on www.Inc.com titled “Escape from Cubicle Hell”