Blue Mountains Business Profile

There are more than 4,000 businesses currently operating in the Blue Mountains (Blue Mountains Business Information Booklet, 2003).

Over 90% of these are classified as small business, employing less than 6 people and half of them are home based.

Home based businesses represent the largest growth sector within small business. In New South Wales, the number of home based businesses increased by 4.2% between 1997-1999, representing around 59% of all small businesses.

The workforce in the Blue Mountains is highly qualified. However, 58% workers currently have to commute outside of the region to find suitable employment, indicating a lack of appropriate employment for the skill base within the region.

Creating local employment opportunities means supporting businesses to grow and also attracting appropriate businesses in the region, through improving investor confidence and demonstrating marketing advantage.

Barriers to growth

Some of the factors that impact on the growth potential of home-based businesses relate also to the small business sector generally. Isolation, balancing domestic and business activities and acceptance by financial institutions are factors that feature more predominantly for the home business.

Research has shown that more often than not home based businesses do not value growth, giving priority to personal and family security or retaining control over working conditions than to growing a business.

At an individual level, many home based business operators lack business skills in financial management, business planning and marketing. This also becomes a barrier to growth.

It has been estimated that 79% operators have no management training or qualifications. Lack of a formal business plan is another significant shortcoming across both home based and small businesses. 83% operators have no business plan.