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Home Based Business - A Model to Accelerate Growth
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- Important Research
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- Model Development
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- Accelerating Growth
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- Graphical outline of model
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Important Research
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There has been little research on the home-based business sector in Australia. It is one of the hardest parts of the small business sector to reach and consequently little has been known about them. Broad-based surveys suggest that in Australia around 12% of households operate a home-based business, consistent with estimates for the UK and US.
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SES and the Capital Region Enterprise and Employment Development Association (CREEDA), conducted a major research and action learning project on home-based businesses in two states and the ACT. It stemmed from the need for a comprehensive assessment of their growth potential and training needs and involved contacting 20,000 home-based businesses.
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SES and CREEDA's research showed that a significant proportion of home-based businesses are well-established, growing businesses far removed from the preconception of them being 'pretenders, intenders or tyre-kickers'. The research found that local government has a big impact on the environment in which home-based businesses operate. Recognising that these businesses add to the economic and social growth of the local area, some councils are now adopting a pro-active and facilitative approach towards the home-based business sector.
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| The publicly available copy of the report 'Backyarders
and Front-runners' can be downloaded at www.dewrsb.gov.au/smallBusiness/publications.
Home Based Business Bibliography
Over several years we have prepared an annotated bibliography
of useful information for and about home-based businesses which
we are continually updating. We are making this bibliography freely
available in the interests of raising community awareness and understanding
of this important business sector. You can download the current
version here.
Please let us know if you come across any additional material that
we could include - it is a living document!
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Model Development
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The project undertaken by SES and CREEDA formed the platform for a model that has potential for wide application. The development process has been one of combining research and action learning and has provided a suite of new material relevant to home-based businesses.
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The model assesses the needs, interests and growth potential of home-based businesses and addresses three key areas - home-based business numbers, their profiles and their needs. This includes tools and methodologies for identifying operators, largely through tele-surveys as opposed to mail-outs and letterbox drops which have a poor response rate. The model also builds profiles of home-based businesses in the local area and develops ongoing support frameworks.
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Accelerating Growth
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The key aim of the SES and CREEDA approach is to accelerate home-based business growth. The methodology targets high growth potential businesses and meets their most immediate needs. An important filtering process is adopted that enables a small pool of high growth businesses to be identified and offered support. If necessary the approach can be concentrated on specific industry sectors.
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The filtering process involves targeted telesurveys of home-based businesses gathering region-specific information on impediments to growth followed by a series of public seminars to attract home-based business operators in the local area. These are in turn followed by focus groups that enable further assessments of business potential and needs to be made.
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The filtering process identifies a pool of about 60 businesses in a local area and synergy groups are formed to provide a support network. This is supplemented by other specialist support services that may include business advice and mentoring. Depending on the nature and extent of the local business infrastructure, local associations or other business support networks can also be formed. These add to the sustainability of the model and can provide an array of complementary support arrangements ranging from technology-based referral services to self-funded managing agency arrangements.
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Importantly, the model reflects the needs and availability of existing support services in the local area and builds local ownership.The longer-term outcomes also include the fostering and development of clear regional policy frameworks that support the growth of the home-based business sector.
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Graphical Model
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The following flow chart provides an outline of the model using an example of a location with 50,000 households.
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Small Business Hot Spots