Online tools are making it possible for people to start a work at home business without the need for a workforce. New businesses of all kinds are now starting up with close to half the number of workers than were required just one decade ago. Though the recession brought about this change, some business analysts say the shift may be permanent.
Since the recession, the overall number of business start-ups has remained steady or even increased, according to a study by the Kauffman Foundation. At the same time, the average number of employees has decreased from 7.5 employees during the 1990s to 4.9 today. During 2009, independent new businesses were responsible for only 2.3 million jobs, which is over 700,000 less than the annual U.S. average through 2008.
Small businesses are opting to outsource, share, or rent resources rather than purchase them. This is typically done through online avenues. Web-based business tools make it possible for many tasks to be performed online rather than by extra staff. Entrepreneurs are finding services online to handle their accounting, IT, and other needs to make starting a business a smooth, user-friendly process.
By being able to do more on their own, entrepreneurs require fewer employees and less money to create their business infrastructure. The National Small Business Association reported that most small businesses use Web-based services to pay bills, purchase supplies, and manage their payroll. An increasing number are using network-based shared applications for data storage, finance, and even customer service.
Home-based businesses that handle manufacturing can now take advantage of order-based production and Web-based tools that handle inventory management. Entrepreneurs no longer need to maintain a large inventory or have someone monitor it. Even business owners who just want to make a profit rather than conquer the world can benefit from online technology.
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