While many home-based business owners expressed concern that excessive regulation could hinder their ability to operate flexibly and drive up costs, consumers and industry peers have called for stricter regulations for the sector, particularly home-based food businesses.
The strictness of regulations for home-based businesses varies worldwide, sometimes differing by state or city in larger countries like the United States.
For example, in 2015, the state of Wyoming passed the Wyoming Food Freedom Act, allowing residents to sell any kind of food as long as it does not contain meat. Later amendments enabled indirect sales at grocery stores, retail locations and the wholesaling of non-perishable foods, and an annual US$250,000 (S$342,000) sales limit.
In Hong Kong, all businesses, including home-based ones, must register with the Inland Revenue Department within one month of starting operations, and there are funding options for home-based businesses including small business loans and government grants.
In 2021, the Restaurant Association of Singapore called for the home-based food businesses industry here to be subjected to a “robust licensing regime”, after 15 people fell ill with gastroenteritis symptoms after eating food from a home-based bakery.
While Ms Marhamah of Inariku is qualified to safely handle raw food, through training she underwent at Tokyo Sushi Academy in the Japanese capital and attending food safety courses, she does not sell raw seafood options because of the Singapore Food Agency’s (SFA) restrictions for home-based food businesses.
But she doesn’t have any issues with such regulations, agreeing that the industry would be “unruly” without guidelines. She also suggested that food hygiene safety courses, which home-based business owners here are currently encouraged to attend, could be made a mandatory prerequisite to raise industry standards.
In the 2021 parliamentary response, Ms Fu, the minister, said that SFA does not require small-scale home-based food businesses to be licensed as the food safety risks associated with them is low. But the agency is considering the need to make it mandatory for home-based food business owners to undergo food safety training and certification, she added.
In response to CNA TODAY’s queries, the SFA said that home-based food businesses keen to expand operations beyond what their homes can support should consider doing so in licensed food premises.
“Licensed food businesses serve a much larger customer base and are therefore required to comply with requirements such as mandatory training for all food handlers and ensure that their premises are appropriately set up and equipped to ensure the sale of safe food,” said SFA.
Regulations aside, home-based business owners acknowledged that much work remains to support smaller ventures in navigating inconsistent demand and achieving commercial success on a larger scale.
Chef X, launched by real estate developer Far East Organization, is a platform to showcase home-based cooks that launched in 2024, providing free rental for a limited period. It follows Baker X, a similar initiative launched in 2021 which offers home-based bakers a two- to eight-week residency, which has showcased 35 bakers thus far.
Ms Deborah Tan, director of the commercial group at Far East Organization said these programmes are designed to offer home-based food business owners a chance to receive immediate feedback and guidance from a veteran chef mentor and access commercial-grade equipment, which may not be permitted or accessible in a home-based setting.
“This immersive experience goes beyond a home-based setup, where many rely on domestic kitchen equipment, delivery services and online reviews to assess their offerings,” she said.
For Mr Tan of Cheeky Don, a one-month residency at Chef X @ Clarke Quay Central has shown him the limits of his current set-up, and what he might need to do before expanding to a brick-and-mortar store.
“There’s a lot of difference between running a commercial kitchen and working from home. At first, I was told to just prepare 20 portions, but it sold out immediately. The first two weeks, I was adjusting and adjusting, until I was preparing more than 60 portions a day,” said Mr Tan.
While he was encouraged by the strong response for his rice bowls from the office crowd, he said the experience also opened his eyes to the less-pleasant realities of expanding his business beyond the home.
“Running a commercial business is very tiring. I slept two to three hours a day. Rent would be very high, and I would be working very long hours,” Mr Tan added.
While having a retail store may be the ultimate goal for some home-based businesses, others regard the model — with its flexibility and lower operational costs — as a strategy in itself.
For Ms Tisha, the young nail technician, what started as a side hustle is now providing her with practical experience for her ongoing degree in business management.
“I see myself doing (home-based nail manicures) in the future, because I’m passionate about it. To me, it’s not really just about the money. I love bonding with the customers, and seeing my vision come to life,” Ms Tisha said.
