Di i S th l d Shi ’Discovering Sutherland Shire’s Home-Based Business (HBB) S tSector

A research program by Sutherland Shire Council’s Economic Development UnitEconomic Development Unit

Glenn Holdstock

ManagerManager

27 May 2009

What is a HBB?

DEFINITION (ABS)(ABS)

Business operated at home Businesses operated from home

Most of the work of the business was carried out at the home(s) of the operator(s)

The Business has no other premises owned or rented other than the home(s) of the operator(s)the operator(s) than the home(s) of the operator(s)

Research Projects

1. An Analysis of the ATO’s Australian Business Register data base for active, registered ABNs in the Sutherland Shire(Thi Th H L M h 2008)(Thi Thu Hong Le. March 2008)

2 A Review and Analysis of Sutherland Shire’s HBB Sector2. A Review and Analysis of Sutherland Shire s HBB Sector(Bingyi Li. February 2009)

Cooperative projects with University of Western Sydney studentsCooperative projects with University of Western Sydney students

Study 1A l i f th A t li B i R i t (ABR)

MethodMethodAnalysis of the Australian Business Register (ABR)

1 2

Raw Data from ATO

1

Practical relational database, 4D & Microsoft Access

2

Summary Tables were produced showing:

Access

•Company•Individual/Sole Trader

•Entity Type•ANZSIC Division (19 categories)&•Suburb

•Partnerships•Government•Trust &

Four categories:•Company, •Sole Trader,

•Superannuation Funds •Partnerships &•Government

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

Study 2HBB Survey

P

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, g y, g ,2008

• Council has for the first time a picture of the structure make-up businessCouncil 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

HBB Survey Methodology

MethodMethodMaking Contact

Design the questionnaire and put it on the website

using Survey Monkey.

Offer incentives to enhance response rate & promote tourism &

Mail invitation letter to a random sample of 4000 HBBs from

& promote tourism & Council’s recreation services.

the ABR.

Invite them to respond to survey on

Mayor to draw the Lucky Prize Winners.

to survey onwww.shirebusiness.com.au

Source: Bingyi

HBB Survey - Major FindingsSource: Bingyi

1 2 3 4 5

Half HBBs id ll

Half HBBs h b i

The HBBs are d f

HBB operators hi hl

More than half t tprovide all or

major share of householdincome.

have been in business for more than 5 years.

made up of:

All age groups , 50/50 M & F,

are highly qualified and well-educated.They undertake

expect to grow their businessesover the nextincome. years.

Half are sole operators,

50/50 & ,a broad range of occupations.

Th b

ey u de a ea range of business related courses from t i i

over the next 2-5 years and therefore employ morep ,

BUT half employ other people

They can be found in every other household across all Shire

trainingproviders such as BEC, TAFE.

employ more people.

suburbs.

HBB Survey - Secondary Findingsy y g1. Half respondents operate at home, half conduct business at other locations2. 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.4. 1 in 5 HBBs are new start ups, i.e. been in business for less then 1 year. 5. 3 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.8. 7 in 10 are satisfied with their internet service for business purposes.p p9. 7 in 10 business computer is also the home computer (which may pose a business risk)10. 3 in 4 respondents report they have undertaken professional/vocational training

The courses are undertaken at TAFE, BEC, Community college and private sector providers, , y g p p

Next steps in understanding the HBB sector

S i l i ( l lid )• Spatial mapping (examples on next slides)

• Continuing the survey base (survey now back on-lineContinuing the survey base (survey now back on line at www.shirebusiness.com.au)

• Qualitative studies, focus groups

• Building relationships• Building relationships

• Providing the services the sector needsg

Location of HBBs in Sutherland Shire

Number of HBBs in Sutherland Shire

Construction businesses in Caringbah

Professional, Scientific & Professional Services in Caringbah

Sutherland

Distribution of ABNs by ANZSIC Division

ANZSIC Code Divisions Camden %Sutherland

Shire %

Agriculture, Forestry and Fishing 1006 5% 698 1%

Mining 16 0% 35 0%

Manufacturing 653 3% 1 940 3%

Number of ABNs:

S h l d Shi 61 601

Manufacturing 653 3% 1,940 3%

Electricity, Gas, Water and Waste Services 61 0% 141 0%

Construction 4178 21% 9,941 16%Wholesale Trade 453 2% 1,528 2%

•Sutherland Shire -61,601

Number of households:

Retail Trade 1050 5% 2,820 5%

Accommodations and Food Services 351 2% 1,292 2%

Transport, Postal and Warehousing 1362 7% 2,622 4%1%

•Sutherland Shire – 80,948Information Media and Telecommunications 89 0% 429 1%

Financial and Insurance Services 1921 10% 8,855 14%

Rental, Hiring and Real Estate Services 1473 7% 6,912 11%

Professional Scientific and TechnicalProfessional, Scientific and Technical Services 1695 9% 7,655 12%Administrative and Support Services 873 4% 2,792 5%

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 1128 6% 3,319 5%,

Sub Total 19,814 100% 61,601 100%

(Source: Profile i.d. and Australian Business Register)

Expectations of Business Conditions

• Short term tightening

• Medium term intention to hire is very significant

• Predictive

Grow your skills atBusiness Development Week (BDW)Business Development Week (BDW)

9-13 June

• Starting Your New Business• Government Support to Grow Your Business• Women In Business• Women In Business• Tourism Conference• Economic Outlook & Controlling Cash Flow• BEC Business Sales & Marketing Forum• Getting Your Message in the Media• Young Entrepreneurs WorkshopYoung Entrepreneurs Workshop

Cost – FREE

REGISTER ON-LINE AT: www.shirebusiness.com.au

To help you succeed in business

• BEC

• The SSHED• The SSHED

• SSHEDx

• Keep up-to-date by making www.shirebusiness.com.au one of your favourites

Have your say…..

Complete our HBB Survey on-line:

www.shirebusiness.com.au

Glenn Holdstock

Manager gEconomic Development UnitSutherland Shire CouncilSutherland Shire Council

E: gholdstock@ssc.nsw.gov.auP: 9710 0607P: 9710 0607www.shirebusiness.com.au