Recession leads to launch of 300,000 Home-based Businesses
Almost a third of a million people have started home-based businesses in the last 12 months, mainly due to redundancy or job insecurity, a new report from Enterprise Nation has revealed.
The 2009 Home Business Report found that 300,000 home-based businesses have been created in the last year, taking the total number to 2.8 million.
The survey also found that 49% of home-business owners said that the freedom to make their own decisions was the most enjoyable part of self-employment. The research also revealed that 89% expect their turnover to increase during the next 12 months.
Enterprise Nation founder, Emma Jones, said that the recession has caused many people to set up in business:
“Some people have been made redundant and decided to use the opportunity to do their own thing. Others have seen the economic situation and decided they don’t want to be at the mercy of their boss. The recession has made them want to have more control over their working life and potential earnings, and the only way of doing that is by working for themselves.
“Home businesses are cheaper to run than having a separate premises, because you have no office costs and no commuting costs. There are also other savings, for example if you go to an office you’re more likely to buy sandwiches every day.”
National Federation of Enterprise Agencies (NFEA) chief executive, George Derbyshire, welcomed the survey results.
“It’s reassuring to see the results of the Home Business Report show a large number of home businesses starting and succeeding this year. These are significant numbers and, at a time when the economic climate may make us think otherwise, it shows that the home enterprise sector is booming.
“It’s certainly the case that many of our members across the country have seen an increase in business start up enquiries this year, and a larger number of these are considering or utilising the home business option.”
He added that many business owners are asking enterprise agencies how they can switch their firm from a premises to the home.
“Developments in technology, better work-life balance and lower financial risk all make home enterprise more viable and acceptable than ever before.”
For more information about running a home business, visit the Enterprise Nation website or if you’re thinking of having your employees work remotely see our business advice article on Employees who Work from Home.