The world of small businesses started crashing down in recent past and continues to do so. Not long ago many home businesses were thriving, but now they're caving in to a faltering economy.
Let's take, for example, handmade crafts. While crafting was a lucrative home-based business as little as two or three years ago, it's seen nothing but a decline in sales since then. Many crafters have gone completely out of business in past year alone.
Why? Because average American has less money to spend on luxuries and unnecessary items. The "down-sized" world we live in today has caused a snowball effect in many aspects of our lives.
Let's continue to use example of handmade crafts. Craft supplies are a necessary expense, of course. And for those who travel each weekend to sell their wares at out-of-town craft shows, there are other expenses to take into consideration. The average cost for one craft show can easily run $75-$100, not including cost of supplies.
And so crafter starts a vicious circle. S/he spends money trying to make money, but doesn't make enough to cover expenses, let alone turn a profit.
On other hand, many other small businesses are booming. The Internet has given many people opportunity to start and build successful home-based businesses, with very few overhead costs.