Once you have decided to work at home (either by choice or out of necessity) you are faced with the decision as to whether to pursue a work at home job or to start a home based business. That may sound like a minor distinction, but the differences can be quite significant.

A general psychological characterization of the entrepreneurial spirit says they are typically people who have a high energy level, set long-term goals, feel quite self-confident, and view money and financial security as a measure of accomplishment and piece of mind.

Entrepreneurs are further characterized as problem solvers, who take risks, learn from their failures (as well as those of
others), accept personal responsibility, seize the initiative, and use all available resources to achieve their success.
Entrepreneurs also tend to compete with themselves and believe that success or failure lies within their personal control or influence. They do not see setbacks as failures, but rather just as learning experiences. Most of all, they exhibit persistence and tenacity, never giving up and never quitting the quest for success.
If you fit most of these criteria, you would probably elect to start a home business instead of undertaking a work at home job. However, the decision to work at home does not necessarily mean that you want to be the owner of a business. You may prefer working at home for an already established company. This is often easier to do than owning a business yourself and you may not want all the headaches, responsibilities and obligations that come with owning your own business.