Profiling micro-enterprises: the case of home-based businesses in 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.

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