Home-based e-business - an option for the self-employed?
Setting up a home-based e-business is an attractive option to many unemployed individuals, since the start-up costs are low and therefore the risks are lower than most conventional businesses. Home-based e-businesses are now very common and highly developed in N. America and Europe. However, it is less common in other countries, especially developing countries where options and support are far more limited. This study aims to find out whether setting up a home-based e-business is a viable option for self-employed individuals in Hong Kong .
In this paper, comparison studies are made between different home-based e-business opportunities available namely (1) promoting affiliate programs, (2) selling physical products, (3) selling soft/downloadable products, (4) selling services. In addition, comparison studies are made on the existing e-commerce supporting services between Hong Kong and overseas. The aim was to determine which type of e-business is most suitable for Hong Kong residents, and to see whether there are any major hurdles for Hong Kong in terms of supporting services. This paper also uses a participant observer methodology as much of the research was carried out in the course setting up a real profitable home-based e-business by the author.
The study finds that it is more difficult to set up a home-based e-business in Hong Kong than in the United States because there are fewer start-up options available for Hong Kong residents. There is also a gap in e-commerce supporting services between Hong Kong and the United States , although it has closed significantly in the past year. The study finds that the most suitable type of e-business for individuals in Hong Kong is selling physical products. Initially this can be carried out through auction sites such as eBay, but eventually it may be carried out through an online shop that can accept credit card payments in real time. Selling physical products is particularly attractive because it is easy to source products at low cost in Hong Kong , and efficient postal and courier services are available. Selling soft products and services are less attractive because of the higher demand in terms of technical knowledge and competency. Although almost completely risk-free, it is most difficult to earn a full-time income through affiliate programs alone because one would have to create web sites that attract a very high volume of traffic in order to generate a decent profit.
Setting up a home-based e-business is now a viable proposition for self-employed individuals in Hong Kong , as the author can attest to this. It is quite clear though, that a home-based e-business is not for everybody as a fair degree of knowledge and competence with the use of e-commerce resources is required , especially in the area of promotion. However, the ever-increasing amount of unemployment, and with the waiver of the business registration fees for 2002 and other incentives should encourage more people to set up home based e-businesses.