Eight Thriving Cottage Industries
Their growth potential makes them prime lending candidates for Credit Unions.
Cottage industries—businesses that can be started by individuals in their homes—present major lending opportunities for credit unions.
Many of these “homepreneurs” may already be credit union members, and they may lack access to another financial institution for credit to expand their business.
These small business owners may seek out the low rates and personalized services that credit unions can offer, giving credit unions a competitive advantage over other providers in this market.
Homepreneurs are likely to offer a service rather than manufacture a product. They typically provide services locally that are impossible to replicate by remote service providers or low-wage foreign firms.
In particular, growth and consolidation among personal care, household, and entertainment service providers may harbor the most alluring opportunities for credit unions during the next five years, according to analysis from industry research firm IBISWorld [ibisworld.com].
To isolate industries that average about one employee per enterprise, IBISWorld recently queried its database of more than 1,000 industries. This table shows a revenue forecast for cottage industries projected to grow most quickly during a 10-year period.continue reading »