Economy

Discovering Sutherland Shire’s Home-Based Business (Hbb) Sector

A research program by Sutherland Shire Council’s Economic Development Unit

What is a HBB? A business operated at home OR from home

Research Projects conducted to understand the HBB sector:

1.       An Analysis of the ATO’s Australian Business Register data base for active, registered ABNs in the Sutherland Shire (Thi Thu Hong Le. March 2008)

2.       A Review and Analysis of Sutherland Shire’s HBB Sector (Bingyi Li. February 2009)

(Cooperative projects with University of Western Sydney students)

Research Project 1

Findings:

  • 61,000 ABNs in Sutherland Shire. This figure includes: 9,000 superannuation and trusts
  • The first study found that we have around 52,000 (With the exclusion of the non business entities) active businesses registered in the Shire
  • Accounting for businesses in industrial zones, shopping strips and commercial premises we estimate the home business sector in Sutherland Shire to number approximately 45,000
  • The Shire has approximately 80,000 households
  • Every other household on average has an active ABN
  • The extent of the home business network was totally unexpected by policy makers

Research Project 2

HBB Survey

Purpose: To understand more about local business i.e. the Home Based Businesses contributing to our local economy

  • This study describes a wide range of Home-based business related issues gleaned from an internet-based survey, during November and December, 2008
  • Council has, for the first time, a picture of the structure, make-up, business activities, operational aspects and income and employment generating capability of Sutherland Shire’s home-based business sector

HBB Survey - Major Findings

  • Half HBBs provide all or major share of household income.
  • Half HBBs have been in business for more than 5 years.
  • Half are sole operators, BUT half employ other people
  • The HBBs are made up of: All age groups, 50/50 M & F, a broad range of occupations.
  • They can be found in every other household across all Shire suburbs.
  • HBB operators are highly qualified and well-educated. They undertake a range of business related courses from training providers such as BEC, TAFE.
  • More than half expect to grow their businesses over the next 2-5 years and therefore employ more people.

HBB Survey - Secondary Finding

  1. Half respondents operate at home, half conduct business at other locations
  2. 9 in 10 have actively engaged in business in the past 3 months.
    7 in 10 routinely fill out a BAS statement, (implying an income >$75,000 p.a.).
  3. HBBs are dynamic – operators work alone and sometimes in collaboration with others.
  4. 1 in 5 HBBs are new start ups, i.e. been in business for less then 1 year.
  5. 3 in 4 of respondents have just 1 ABN registered at their home address
  6. Half HBBs have a written business plan or cash flow projections (BUT1/2 have neither!).
  7. All respondents have some form of internet service hardware at HBB, 70% have broadband.
  8. 7 in 10 are satisfied with their internet service for business purposes
  9. 7 in 10 business computer is also the home computer (which may pose a business risk)
  10. 3 in 4 respondents report they have undertaken professional/vocational training
  11. The courses are undertaken at TAFE, BEC, Community college and private sector providers

Next steps in understanding the HBB sector

  • Spatial mapping (examples on next slides)
  • Continuing the survey base (survey now back on-line at www.shirebusiness.com.au)
  • Qualitative studies, focus groups
  • Building relationships
  • Providing the services the sector needs

To help HBBs to succeed:

  • Become a member of the Business Enterprise Centre www.becsmallbiz.com.au
  • Consider the SSHED www.sshed.com.au or SSHEDx program
  • Keep up-to-date by making www.shirebusiness.com.au one of your favourites
  • Attend the annual Business Development Week (June/July) which covers topics including: Starting Your New Business, Government Support to Grow Your Business, Women In Business , Tourism Conference, Economic Outlook & Controlling Cash Flow, BEC Business Sales & Marketing Forum, Getting Your Message in the Media and Young Entrepreneurs Workshop

The 2 Research Reports are located on: www.shirebusiness.com.au, under Research, Projects

For more information contact:

Glenn Holdstock

Manager I Economic Development Unit I Sutherland Shire Council I E: gholdstock@ssc.nsw.gov.au

P: 9710 0607 I www.shirebusiness.com.au