Home-Based Business (HBB) Sector

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2 Discovering i Sutherland Shire s Home-Based Business (HBB) Sector A research program by Sutherland Shire Council s Economic Development Unit Glenn Holdstock Manager 27 May 2009

3 What is a HBB? DEFINITION (ABS) Business operated at home Most of the work of the business was carried out at the home(s) of the operator(s) Businesses operated from home The Business has no other premises owned or rented other than the home(s) of the operator(s)

4 Research Projects 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

5 Study 1 Analysis of the Australian Business Register (ABR) Method Raw Data from ATO 1 2 Practical relational database, 4D & Microsoft Access Company Individual/Sole Trader Partnerships Government Trust & Superannuation Funds Summary Tables were produced showing: Entity Type ANZSIC Division (19 categories) & Suburb Four categories: Company, Sole Trader, Partnerships & Government

6 Findings from the ABR 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

7 Study 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 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

8 HBB Survey Methodology Method Making Contact Design the questionnaire and put it on the website using Survey Monkey. Mail invitation letter to a random sample of 4000 HBBs from the ABR. Invite them to respond to survey on Offer incentives to enhance response rate & promote tourism & Council s recreation services. Mayor to draw the Lucky Prize Winners. Source: Bingyi

9 HBB Survey - Major Findings Source: Bingyi 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 hl qualified and well-educated. They undertake e a range of business related courses from training i providers such as BEC, TAFE. More than half expect tto grow their businesses over the next 2-5 years and therefore employ more people.

10 HBB Survey - Secondary Findings 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 in 5 HBBs are new start ups, i.e. been in business for less then 1 year 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 in 10 are satisfied with their internet service for business purposes. p 9. 7 in 10 business computer is also the home computer (which may pose a business risk) in 4 respondents report they have undertaken professional/vocational training The courses are undertaken at TAFE, BEC, Community college and private sector providers

11 Next steps in understanding the HBB sector Spatial mapping (examples on next slides) Continuing the survey base (survey now back on-line at Qualitative studies, focus groups Building relationships Providing the services the sector needs

12 Location of HBBs in Sutherland Shire

13 Number of HBBs in Sutherland Shire

14 Construction businesses in Caringbah

15 Professional, Scientific & Professional Services in Caringbah

16 Distribution of ABNs by ANZSIC Division ANZSIC Code Divisions Camden % Sutherland Shire % Agriculture, Forestry and Fishing % 698 1% Mining 16 0% 35 0% Manufacturing 653 3% 1,940 3% Electricity, Gas, Water and Waste Services 61 0% 141 0% Construction % 9,941 16% Wholesale Trade 453 2% 1,528 2% Retail Trade % 2,820 5% Accommodations and Food Services 351 2% 1,292 2% Transport, Postal and Warehousing % 2,622 4% Information Media and Telecommunications 89 0% 429 1% Financial and Insurance Services % 8,855 14% Rental, Hiring and Real Estate Services % 6,912 11% Professional, Scientific and Technical Services % 7,655 12% Administrative and Support Services 873 4% 2,792 5% Number of ABNs: Sutherland Shire -61, Number of households: Sutherland Shire 80,948 Public Administration and Safety 169 1% 352 1% Education and Training 398 2% 1,462 2% Health Care and Social Assistance 531 3% 2,118 3% Arts and Recreation Services 466 2% 1,855 3% Other Services % 3,319 5% Sub Total 19, % 61, % (Source: Profile i.d. and Australian Business Register)

17 Expectations of Business Conditions Short term tightening Medium term intention to hire is very significant Predictive

18 Grow your skills at Business Development Week (BDW) 9-13 June 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 Young Entrepreneurs Workshop Cost FREE REGISTER ON-LINE AT:

19 To help you succeed in business BEC The SSHED SSHEDx Keep up-to-date by making one of your favourites

20 Have your say.. Complete our HBB Survey on-line:

21 Glenn Holdstock Manager Economic Development Unit Sutherland Shire Council E: P: