The Role of Home-Based Businesses in the Country’s Entrepreneurship Ecosystem

The development of home-based businesses and small-scale local startups has been one of the key economic priorities in government programs over the past several years. However, evidence suggests that limited success has been achieved in this area, and the verbs “to develop” or “to promote” have not truly materialized in practice. According to official statistics published by the Ministry of Cooperatives, Labour, and Social Welfare, home-based businesses account for only 2.5% of GDP, while small industries and micro-enterprises also hold a very small share of the national economy.

Home-based businesses and small local enterprises act as the capillaries of the national economic structure. In fact, they serve as channels through which small-scale capital circulates at the local level, with their roots connected to broader financial and monetary flows generated by large and medium-sized industrial production. Despite their significant and influential role in the economic structure, existing policies and programs implemented over recent years—including financial support schemes and training initiatives—have not effectively strengthened these channels.

What is increasingly evident in the current structure of home-based businesses and local micro-enterprises is the presence of multiple challenges, including access to raw materials, market discovery and expansion, and the management of income and expenses. Moreover, based on current market conditions, governments have often treated these activities as secondary or even recreational occupations, particularly for households and especially for women heading households. However, the formation of a structured network of home-based businesses at the local level can significantly transform household economic and livelihood conditions. Therefore, a shift in perspective—alongside the implementation of problem-oriented policies—can create the conditions necessary for meaningful change. One of the most important paradigm shifts is to recognize these activities as local capacities for generating economic and social value, while enabling innovation within them.

It is important to note that home-based businesses are not limited to traditional methods of handicraft production or packaging activities. Instead, they hold significant potential for innovative ideas and approaches. It is also important to recognize that micro-enterprises operating within traditional production structures or outdated industrial infrastructures cannot meaningfully generate entrepreneurship and employment at scale.

With these two fundamental points in mind, it can be concluded that the development of home-based businesses and local startups requires more than just financial liquidity or subsidy-based policies—approaches that have dominated government strategies in recent years. Instead, it requires educational infrastructures aimed at improving public knowledge in entrepreneurship, innovation, and team-based skills. This means that financial and credit-based support can only be effective when the role of these businesses is clearly defined within the broader innovation and entrepreneurship ecosystem.

Therefore, **one of the most important development strategies is, on the one hand, to establish a clear institutional mechanism that connects home-based businesses and small local enterprises with actors in the innovation and technology ecosystem, and on the other hand, to emphasize the development of innovation and entrepreneurship concepts at the household level—both urban and rural—through community-based and locally driven programs.** Integrating these two strategic programs into regional development frameworks not only creates accessible innovative employment opportunities for all, but also enhances public awareness, social motivation, and ultimately leads to the formation of a network of new services and products. This, in turn, improves household economic capacity and livelihoods in the present while paving the way for entrepreneurship in future generations.