Understanding the SOHO market Monday, May 12, 2003 Micro-businesses, such as home-based businesses, are often neglected in economic development strategies. But they can be important components of a healthy economy. This segment overlaps with the SOHO market -- Small Office, Home Office -- and it attracts a lot of attention from larger equipment and service businesses, like office supply companies, computer manufacturers, and telephone companies. Micro-enterprises (a term used mostly by government agencies and foundations) are often defined as businesses with under 5 employees. SOHO is a broader term that is about 25 years old and originated among analysts in the technology industry. SOHO encompasses a range of entrepreneurial activities and business structures -- from individuals working solo to companies with 20 or fewer employees. They include a range of worker categories and terms: home-based businesses, free agents, independent contractors, telecommuters, e-lancers, and other independent professionals. These definitions are not fixed. The majority of the SOHO market is made up of solo agents. If you think of the SOHO market as a large target, the outer circle represents companies with 12-20 employees. Working from the outside, the next inner circles represents firms with 6-11 employees and 2-5 employees. In the solid center area of the target you'll find the core of SOHO: individuals who are working solo. Here are some additional facts on the market. There's a serious debate about the growing importance of sole practioners to the future of our economy. Read Free Agent Nation to learn more. In Rhode Island, the MicroEnterprise Association provides a continuous cycle of training to this segment. More important, the Association builds a valuable network of contacts for graduates. Learn more from their web site. Today in our history of innovation... In 1874, Elijah McCoy, the prolific African American inventor, patented an ironing table. McCoy is so well-known for useful inventions that his name is used in "the real McCoy." The expression was first applied to his effective lubricating devices for steam engines for which he held numerous patents. With his devices, steam engines no longer had to stop to be lubricated. posted by Ed Morrison |		This work is licensed under a Creative Commons License. links Some Background on EDPro Weblog The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it. One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information. So, spread the word...Share the knowledge. Tell a friend about EDPro Weblog. If you are using a news reader, here is the link to syndicate this site: Here's the link if you are a bloglines subscriber: Speaking and workshops on Open Source Economic Development As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking. Background on Ed Morrison Download some background information on me here.

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