<p>This study presents an analysis of Home-Based Enterprises (HBEs) in urban Nigeria with a focus on economic growth and environmental impact. A survey was conducted from 330 respondents across five neighborhoods in Ikot-Ekpene, Nigeria. The data examined critical economic indicators of income source and improved productivity. Moreover, environmental factors were also considered as air and noise pollution. The analysis incorporated four statistical approaches: descriptive, correlation, regression, and clustering analysis. Correlation analysis revealed a strong positive relationship between improved productivity and source of income (correlation coefficient = 0.76), which underscored the economic potential of HBEs. Regression analysis showed that improved productivity predicts income with a coefficient of 0.70, while cluster analysis identified three groups: high-income HBEs with minimal environmental impact, HBEs facing elevated environmental challenges, and a mixed group. This research highlights the varied dynamics of HBEs to offer knowledge for policy-making and strategic planning that fosters sustainable urban development by balancing economic growth with environmental stewardship.</p>