Small Business
Issue No. 35 - June/July 2007
Home business boom potential
As larger companies have tended to downsize or relocate their operations interstate or overseas, South Australia is becoming more dependent than ever on small business, according to a major federal government advisory body.
Adelaide Metropolitan Area Consultative Committee EO, Anne Evans has been observing the trend in automotive and manufacturing, construction - even the public service - towards outsourcing to contractors, consultants and small business.
Anne says AMACC research of the home-based business sector shows the growing economic and social significance of small business relative to the big names.
“Various research and surveys have indicated that consistently at least 10% of households in a region host at least one home-based business,” Anne says.
AMACC research finds HBBs' relative importance and value in economic development in SA can best be represented as follows:
•Small business is 94% of all SA business
•Small business is the largest employer collectively
•67% of small business - 47,700 - are HBBs
•SA traditionally has the second highest growth rate of HBBs - 24% increase compared with national average of 17% for all small business
•HBBs employ on average 2.4 people
•High proportion of HBBs owned and operated by women
•Most businesses had turnover greater than $25k - 11% in the southern area have greater than $250k
•Most have traded for more than five years with 50% of southern firms trading for more than 10 years
“A common (mis)perception of an HBB is that the work is conducted in the garage or shed and is transient until something else (eg a job) comes along, or that the female home-based business operator is typically working at a sewing machine or making jam in the kitchen,” Anne says.
“What we have found is that most businesses are in the construction/trade industries while other businesses focus on information and communicat...
