Homeschool worksheets are far more than busy work. They are an important part of making sure that the concepts you teach in your home school stick with your child. Just make sure you have a good source for providing the worksheets, and that they're the right ones for your kid or kids.
Lacing activities, stringing beads and cheerios, playing with playdoh, scooping sand or rice, and activities like pouring and stirring are also great fine motor activities.
Do choose worksheets that are appropriate for the child's level, since children can get discouraged easily, if they are unable to perform the activity. Well illustrated worksheets with cartoons are also more likely to appeal to children. Worksheets that use common situations children come across at home, school, in the market place etc and that use common objects known to children would be more relevant.
By the time your child is ready for kindergarten or school, they should be able to recognize their own name and other simple written words. The sounds of each letter of the alphabet should be familiar to your child, and they should understand the principle of reading from left to right, which way to hold a book, and possibly even be starting to read three and four-letter words.