ESRC Seminar Series: Home-based businesses in their local settings,
Hendon Campus, Middlesex University, 16th September 2014
Abstracts
The Entrepreneurial Household: Negotiating Practices and Roles
Professor Susanne Tietze and Nora Koslowski
Drawing on data from home-located projects from two empirical studies, we first posit that
the boundaries between work and home need to be renegotiated in households where paid
work is introduced and becomes integrated into the domestic domain. We show that
therefore the relationship between ‘home’ and ‘work’ is recast. We understand processes
of recasting as involving the activities of brokering (bringing work activities into the home
and vice versa), and using boundary spanning objects, such as laptops, to connect the
practices of home and work. Connections between home and work are created because
home-working entrepreneurs possess multi-membership in both domains, and must
precariously juggle norms of productivity and intimacy at the same time. We secondly
demonstrate that ‘homeworking’ is always a conflicted community of practice. This
community of practice (Wenger, 1998) is characterised by ambiguity over whether the
home is a place of work and by conflict between family members in trying to make sense of
the arrival and existence of work at home. We show that conflict is a form of engagement in
this community, which can both facilitate and constrain entrepreneurial activity and
endeavour.
Online Home-Based Businesses: Widening Entrepreneurial Opportunities
Prof Elizabeth Daniel, Dr Naveed Anwar & Pofessor MariaLaura DiDomenico
This presentation considers online home based businesses. We define such businesses as
those that are based in the home and undertake a significant proportion of their activities
online. They include businesses such as web designers, producers selling online, business
and consumer providing services online and online communities.
Many of today’s largest and most influential online firms started in the homes or garages of
their founders: Microsoft, HP, Facebook and Amazon. Whilst most online home-based
businesses will not grow to the same size or market dominance of these firms, we will
present evidence from previous studies, and from our own research on these types of firms,
that suggest that they have characteristics that make them distinct from other types of
home based businesses. These salient characteristics suggest these businesses are ideal for
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experimentation, learning by doing, emergent goals and for entrepreneurs who may have
relatively low levels of self-efficacy. These features suggest that such businesses can widen
entrepreneurial opportunities.
The presentation will draw on findings of a systematic review of home-based online
businesses and empirical field studies of such businesses which were undertaken with Dr
Naveed Anwar, Open University and Professor MariaLaura DiDomenico, Surrey University.
Our studies have not focussed on the issue of location, since online businesses seek to be
location independent. However, we will reflect on observations made by interviewees
during our empirical studies about their location and what this suggests for future studies of
the settings of home based businesses.
Home-based businesses in Rural England – A Statistical Analysis
Dr Gary Bosworth and Dr Robert Newbery
Home-based businesses (HBBs) play an important role in rural settlements where the scale
of economic activity is lower and their social function can often be more significant.
However, as small enterprises operating from a residential address, they are often
overlooked by policy-makers resulting in their potential contribution to rural development
being under-valued (Dwelly et al., 2005). Where HBBs are embedded in a rural locality, it is
hypothesised that they can contribute to neo-endogenous development (Ray, 2006) based
around local resources and local people. Therefore the first component of this paper reviews
different research, theories, experiences and policy approaches to enable the identification
of factors that are more pertinent to this group of enterprises.
Secondly, this paper reports on Census data for England as a preliminary component of a
larger project where a combination of a survey, interviews and visual methods will be
employed to deepen our understanding of this diverse section of the rural economy. The
England and Wales Census allows us to identify people whose main place of work is the
home and there are separate categories to identify those that are self-employed allowing
home-working and the operation of a home-based business to be distinguished.
The aims of this analysis are to identify the scale of home-working and HBBs in the more
rural districts of England1. Additional details about the age and sex of these people will be
analysed to construct a detailed picture of this population. Overlaying these data with other
demographic and socio-economic information will enable further insights that can guide
increasingly locally-focused approaches to rural development policy as well as inform the
design of subsequent close-up research.
Based on Defra’s 2009 typology: http://www.ons.gov.uk/ons/guide-method/geography/products/area-classifica
tions/rural-urban-definition-and-la/rural-urban-local-authority--la--classification--england-/index.html
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Everyday Life and Entrepreneurship: Rhythms of Home-Based Businesses
Formation
Dr Tim Vorley & Dr Nick Williams
Home is where the heart is, yet over the past decade it has also become an increasingly
important site of business activity. ‘Home-based businesses’ (HBBs) are not a new
phenomenon, however they remain comparatively under researched and their significance
not widely understood. While previous research has sought document, detail and unpack
the nature of HBBs there has been no attempt to theoretically engage with the
entrepreneurial process of becoming a HBB entrepreneurs or the formation of HBBs. The
existing literature has tended to be empirically orientated, either focusing on the benefits
that the home can provide prospective entrepreneurs in starting a business or providing in
depth studies as to the prevalence of HBBs in different national contexts. As such there is an
opportunity to build on existing theoretical perspectives to develop new insights about the
formation HBBs through socio-temporal analysis of the everyday life trajectories of
entrepreneurs. This paper argues that this represents a critical next step in extending the
frontiers of HBB research, and understanding the entrepreneurial process that underlie the
formation of HBBs and entrepreneurial ventures more generally. As such this paper draws
on Lefebvre’s concept of ‘rhythmanalysis’ to explore how the temporalities of everyday life
relates to and affects the formation of HBBs. In our study, we assume a qualitative approach
to understand the individual paths of HBB entrepreneurs. We argue that such a theoretical
conception is necessary to better understand how entrepreneurial ‘notes’ and ‘tempos’
define the everyday life rhythms of HBB entrepreneurs.
From Shop Fronts to Home Offices - The Characteristics of the
Neighbourhood Economy in the Netherlands
Dr Emma Folmer and Dr Anne Risselada
Residential neighbourhoods are usually not the place for big businesses or large office
developments. That is not to say that urban residential neighbourhoods are not attractive as
business locations. In the Dutch neighbourhoods studied for this paper, the majority of the
firm population consists of one-person firms and small firms (up to 20 employees). This
study shows that a large share (on average 60%) of firms in residential neighbourhoods is
home-based. This paper investigates different dimensions of the Dutch neighbourhood
economy. It will zoom in on the differences between home-based and non-home based
business in terms of economic significance, market locality and local embeddedness. The
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study consists of a large scale survey amongst entrepreneurs ( N=370) conducted in fifteen
neighbourhoods in five Dutch cities in 2011. In each city, three neighbourhoods were
selected. One of high, average and low socioeconomic status, taking into account the
different urban milieus that might affect local entrepreneurial activity. The findings indicate
that we can make a typology or set of profiles of different ‘neighbourhood entrepreneurs’ –
entrepreneurs that all operate from the residential neighbourhood but have a different
development trajectory and use the space of the neighbourhood differently. For example,
when entrepreneurs choose a business location, neighbourhood characteristics such as
potential customer base, image of the neighbourhood and functional mixing are on average
more important when their firm operates on a walk-in basis. Another interesting result is
that the space of the neighbourhood is experienced differently depending on sector – firms
in the financial sector for example, attach high value to the ‘look and feel’ of the
neighbourhood. This paper offers a rich overview and analysis of entrepreneurial activity in
a type of urban setting, the residential neighbourhood, that is often overlooked as a place of
economic activity.
An investigation into the motivations of Scottish home-based business
owner-operators
Isla Kapasi
According to Allinson et al. (2013, , home-based businesses (HBBs) account for
approximately 70 percent of micro-businesses (9 employees or less). In addition, figures
from the Department of Business, Innovation & Skills report that HBBs contributed £284
billion to the UK economy (reported in Enterprise Nation, 2009). Cumulatively this would
suggest that HBBs represent a significant proportion of the UK business population, with
Rowe et al. (1999, suggesting that a ‘trend’ towards utilising this business model may be
emerging (also Enterprise Nation, 2009). However, academic research investigating why
individuals pursue the HBB model has been limited, with research focusing on gendered
reasons (i.e. mainly management of home’s ‘dual’ role) (e.g. Ekinsmyth, 2011), or broad
descriptive studies which offer summaries of motivations based on general small business
literature (see e.g. Walker, 2003; Wilson et al., 2004; Newbery and Bosworth, 2010; Mason
et al., 2011). Further, HBBs are often labelled as ‘lifestyle’ businesses inferring a lack of
economic contribution. Previous studies do not include much exploration of motivations of
HBB owner-operators however, and in particular how this may affect business outcomes. In
response to this evidence gap, and underpinned by an intention-motivation theory,
Shapero’s Entrepreneurial Event theory (SEE), the research objectives of this study were: (1)
to investigate intention antecedents and motivations of HBB owner-operators; (2) to outline
the personal and business outcomes of those motivations within the HBB context
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To understand how an individual perceived their motivations and subsequent business
outcomes, this exploratory research utilised a qualitative methodology. Scotland provided
the focus for sample selection as previous research has indicated that Scotland has a
relatively high proportion of HBBs compared to other business types (see Mason et al.,
2011). Nevertheless, despite high reported numbers of HBBs in Scotland, it is significantly
challenging to engage with ‘invisible’ businesses (Mason et al., 2011) which often operate
‘under the radar’ (Dwelly et al., 2005). Therefore, a two stage sample selection process was
employed. In the first instance, a call for participants was based on self-selection promoted
via social networking, business networks and posters which were placed in business hubs.
Thereafter, initial participants were invited to ‘snowball’, that is recommend or invite, other
suitable participants. In this way 28 in-depth interviews were collected. Interviews were
transcribed in full and subjected to thematic analysis taking themes from literature,
Shapero’s Entrepreneurial Event theory, and those that emerged during data collection.
Emerging findings Early-stage emergent findings suggest that Scottish HBB owner-operators
perceive motivations for business creation in general, distinct to those related to the
creation of a business based in the home. Individuals report a diverse range of motivations.
However, extrinsic motivations, such as status and reputation, appeared to be more
significant to those interviewed than intrinsic factors such as autonomy, independence and
control. This is contrary to recent small business research which has suggested that personal
intrinsic motivation factors were predominant in Western economies (Feldman and Bolino,
2000; Hessels et al., 2008; McGowan et al., 2011). In addition, the decision to base the
business at home has both business and personal consequences which positively and
negatively affect the potential for business growth. For example, some HBB owneroperators, despite evidence of growth potential in their businesses, choose to restrict their
business potential in order to protect what they appear to value more, such as work-life
balance. Finally, although geographical location was not central to this research, it was
possible to detect some initial differences between HBBs operating in urban and rural
locations. Findings appear to suggest that ‘life stage’ of the HBB owner-operator is different
between urban and rural settings with rural HBBs more likely to be operated by retirees or
parents. This has an effect on time committed to developing and growing the business.
Relevance to policy and practice Based on the initial examination of the data, there are
several factors which may be of relevance to policy. First, it is not enough to provide
services which reduce barriers to growth, if growth (or other success indicators) is not
understood to be a multi-faceted idea for those who operate (home-based) businesses.
Second, although in this study status and recognition appears to be a primary motivation,
other extrinsic motivators such as role models may help to stimulate future (home-business)
creation, with the potential to encourage growth as an aspirational outcome. Finally, the
‘life stage’ of HBB owner-operators appears to be somewhat linked to their geographical
location, such that it may be possible to recommend different business services and support
to HBBs operating in different locations.
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