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 report, 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.
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