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The purpose of this paper is to challenge calls for a monolithic rural home‐based business (HBB) sector and instead propose meaningful sub‐sectors of HBB that fit within contemporary rural economic development theory. This informs business support and policy objectives.

Survey analysis of rural microbusinesses in the North East of England compares home‐based and other rural microbusinesses to illustrate their defining characteristics. Case study interviews are then used to test theory development and provide greater understanding about the motivations and aspirations of HBB owners.

The research demonstrates that the rural HBB sector is not homogenous. For some, the home is the business, for others it is a convenient location and for others it is not the place of work, simply the registered business address. This has significant implications for the …