Growth And Expansion Of Women-Owned Home-Based Business

Abstract

Home-based business (HBB) growth and expansion has been approached from the perspective of the increase in numbers of HBBs and the economic multiplier effect. However, little is known concerning the actual growth and expansion of the individual HBBs in terms of increase in turnover and sales, number of employees, increase in products and services, return on investment and market share. This is particularly true when narrowed to a specific demographic group, such as women-owned HBBs. This paper explores the growth aspirations and actual growth experiences of women-owned HBBs, as well as the factors both influencing growth and retarding growth amongst women-owned HBBs in Victoria, Australia. We found that over half of female owned HBBs have experienced growth and almost three quarters aspire for future growth. A factor analysis and subsequent correlation and one-way Anova revealed the significant factors associated with growth and retarding growth. We found that prudent business management and external factors in the form of government support and securing a major contract are important factors contributing to growth. Concerning future growth the most important factors were business management and market opportunities such as achieving exports and conducting business over the Internet. HBBs that planned to grow also placed more importance on the barriers to growth. The paper expands knowledge in the domain of women-owned HBBs and challenges the view of women-owned HBBs as less formal organisations with an indifferent attitude towards growth.