Title: Profiling micro-enterprises: the case of home-based businesses in New Zealand

Authors: Delwyn N. Clark; Heather Douglas

Addresses: Faculty of Management, University of Waikato, Private Bag 3105, Hamilton, 3240, New Zealand. ' Home Business New Zealand, P.O. Box 32610, Devonport, Auckland, 0744, New Zealand

Abstract: Micro-enterprises represent significant proportions of small firms in most economies yet they are not routinely profiled or studied. This paper examines business processes and activities of micro home-based businesses (HBB) from an empirical study of 522 firms in New Zealand. Key findings profile the microscopic scale of HBB and their flexibility in operating both at and away from home. The importance of sources of finance, marketing activities, relationships, and business indicators for HBB are evaluated. Aspirations for growth were very high, with HBB reporting personal factors as the most important resources for growth, followed by functional business activities and expertise. Furthermore, high levels of GST registration and international business activities indicate that many HBB are quite business savvy.

Keywords: micro-enterprises; HBBs; home businesses; home-based businesses; New Zealand; small and medium-sized enterprises; SMEs; business processes; flexibility; resources; business growth; business locations; finance; business indicators; marketing; business relationships; international business; comparative performance; aspirations; personal factors; functional activities; business expertise; GST; goods and services tax; value added tax; taxes; taxation; VAT; entrepreneurship; entrepreneurs; entrepreneurialism; management; sustainable development; sustainability.

DOI: 10.1504/WREMSD.2012.049390

World Review of Entrepreneurship, Management and Sustainable Development, 2012 Vol.8 No.3, pp.265 - 284

Published online: 18 Sep 2014 *

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