Characteristics of home-based business: essential background for future research

Home-based businesses (HBBs) are of interest to the academic community as well as policy makers. The initial purpose of this paper is to review the findings of existing HBB research. Two key conceptual and empirical research questions are addressed: who are these HBBs and what are their characteristics; and what is known about the viability of individual HBBs, the sustainability of HBBs as a sector, and the potential for growth both individually and as a sector? The review highlights the need for a more coherent information base and theory development to inform the development of effective strategies, policies and programs for the HBB sector. The paper then proposes that a grounded theory approach be used and discusses three distinct levels of conceptualisation which could give a deeper understanding of the HBB phenomenon. It is further argued that a qualitative research paradigm is needed to develop grounded theory and gain a fuller, richer understanding of how we can conceptualise HBBs. To advance research into the HBB phenomenon beyond its present descriptive form, there must be a shift in research focus which should not come from the ideas of academics or policy makers but from the thoughts and ideas of the people engaged in HBB.