Home-Based Business in Visegrad Countries: GEM Perspective

Home-based businesses (HBB) represent considerable proportion within entrepreneurial activity in V4 countries, where more than half of early-stage entrepreneurs and fourin ten established businesses trade or operate primarily from home. However, empirical inquiry into this phenomenon in V4 region is scarce. Therefore, the aim of our study is to analyse main characteristics of home-based entrepreneurs and their businesseswithin the Global Entrepreneurship Monitor (GEM) perspective, to discover similarities and differences between home-based and non-home-based entrepreneurs and their endeavours. Design/methodology/approach: Our empirical study is based on GEM 2014 individual-level data obtained through adult population surveys in Visegrad countries. The main sample comprises of 524 home-based and 547 non-home-based entrepreneurs. These two sub-populations are compared in main attributes of individual entrepreneurs and theirbusinesses. The studied attributes were used to create sub-categories in which the proportion of home-based businesses was analysed and assessed for statistical significance using chi-square tests. Findings:There are several distinctive attributes differentiating home-based and non-home-based entrepreneurs and business activities in Visegrad region, as well as certain similarities. HBB is more popular among female and youth entrepreneurs, and a preferred solution for combined opportunity-necessity business entries. Also, HBBs are using the advantage of on-line trading, and represent a preferred choice for businesses in extractive sectors. On contrary, inclination towards HBB is not based on individual entrepreneurial attributes, and there is no linkage with business aspirations. Research/practical implications:HBBs seem to be an appropriate means to support inclusive entrepreneurship of women and youth. Also, they appear as a proper direction to support business in extractive sectors and on-line sphere. However, there is no justification for creating support to increase business aspirations preferably for HBBs, as non-HBBs would considerably benefit from such increase as well. We encourage further empirical inquiry into this phenomenon in Visegrad region,both on country-or regional level, as well as in terms of more detailed deeper explorations. Originality/value:Our study is, to our knowledge, the first comprehensive overview on home-based entrepreneurs and their business endeavours in Visegrad region. It discovers the main characteristics of this phenomenon and compares it to the rest of entrepreneur population. Thus, it helps to validate characteristics attributed to home-based businesses in the Visegrad region contexts, providing valuable insights to both policy making and academia.