Wednesday, March 23, 2005

Home-based Businesses

Question

A student here has asked for data on the number of home-based businesses in Toronto. I can easily find the number of people
employed in home-based businesses, but not the number of such businesses. In the hope that I have somehow missed the blindingly obvious, is this information available somewhere?

Answer

The only information I found, which is fairly dated, is from the 1995 Survey of Work Arrangements 1995. There was an article written in Perspectives on Labour and Income (catalogue 95-001-XPE, Autumn 1998 - Vol. 10, no. 3) entitled "Home-based entrepreneurs" which reports findings from this survey and publishes some results at the Canada level.

Short of this survey, I can not imagine we have very much information to help you.

The issue stems from the fact that business counts primarily come from administrative data (from CRA). A business needs to register with CRA under two circumstances: 1) They have employees and need to register for a payroll account, or 2) the business makes more than $30,000 a year and needs to register for a tax number from CRA.

As you can see, home-based businesses are often entrepreneurs with a fairly low income and without employees. Unless we have a special survey seeking them out, it does not seem as though the information we collect covers your patron's needs.

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