The Rise of Home-Based Businesses

Apr 27, 2021   |   Le Hua Li

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In the lull of the Covid-19 circuit breaker period last year, Singapore saw a rapid surge in home-based businesses (HBBs). For some of their founders, circuit breaker meant more time to pursue their passions. For others, it was a matter of finding alternative ways to make ends meet.

The advantages of HBBs over traditional businesses, including flexible working hours and low start-up capital, are no doubt attractive. At the same time, HBBs face their fair share of unique challenges. In line with URA regulations, HBBs are not permitted to conduct physical advertising, meaning they rely very much on word-of-mouth publicity. The key for HBB owners thus lies in pushing their name out there in the early stage, enticing people to try their products, and in the long run, sustaining sales.

And so, beyond perfecting their crafts, HBBs have learnt to capitalise on social media platforms like Facebook and Instagram for marketing. For example, using trending hashtags and eye-catching graphic designs, or curating snapshots of behind-the-scenes kitchen work.

Marketing materials on homebaker @2ndoven.sg’s Instagram page

Their focus is on shaping a brand identity that can enable them stand out from regular retailers. Recognising the strong demand, Facebook announced a grant worth about S$4.75 million aimed at supporting more than 800 local SMEs in September last year. Some have also signed onto popular e-commerce apps like Shopee and Lazada, which collect a small commission from their revenue but help expand their potential customer base.

On the offerings front, HBBs are always rolling out new products to satisfy customer preferences. True to their promise, HBBs like Flourworks and Sourbombe Artisanal Bakery provide the kind of food that we would make ourselves at home if we had the time. Founded by SMU undergraduate Maribelle Su, Flourworks has received over 150 orders of loaf cakes and cookies since its launch, and boasts more than 1,900 followers on Instagram. Likewise, for 22-year-old Masterchef Singapore finalist Genevieve Lee of Sourbombe Artisanal Bakery, her spin on the Italian classic bomboloni dessert has experienced such success that she is making plans to shift store operations to a larger-scale central kitchen.

The irresistible baked goods offered by Flourworks and Sourbombe Artisanal Bakery

Food HBBs, though the most predominant, aren’t the only ones that are thriving. Polytechnic student Siti Nur Azizah Rasani, founder of a fashion store, sold out on two collections of her hand-reconstructed clothing. This is all while she had to balance school commitments and studies.

Against the gloomy backdrop of the pandemic, the spirit of enterprise in Singapore shines bright. HBBs prove that establishing a business is by no means an impossible feat, even for absolute novices. It does, of course, entail some degree of risk-taking, and indeed the drive to work hard and innovate. HBB entrepreneurs have for sure made their mark in Singapore and deserve our fullest support as they strive to keep sales up and running in times as uncertain as today.