Entrepreneurs working from home are receiving more backing from the government as part of a package to boost the economy.
More than 70% of new start at home as entrepreneurs try to keep costs down while developing their business ideas, says Business Minister Matthew Hancock.
Almost 3 million home-based businesses add £300 million a year to the British economy and Hancock wants to encourage more people to start-up on their own.
The new aid package includes:
- A new law stopping buy to let landlords from restricting tenants working from a rented home
- Stripping away planning laws so entrepreneurs do not need permission from their local council to set up a home business
- Overhauling business rate rules to exempt most home businesses from paying the tax
The minister set out his manifesto for home entrepreneurs at the first home business summit organised by small business network Enterprise Nation.
Keeping costs down
The summit heard that 10% of homes have at least one business based on the premises.
“Entrepreneurs set up at home for several reasons,” said Enterprise Nation’s Emma Jones. “Firstly, the financial aspect of starting at home keeps costs down, but taking charge of their own fortunes and taking advantage of ever-improving technology also play a large part in their decisions.”
The summit also heard that 70% of small businesses start in the home before needing to move into new premises as they outgrow the space.
Jones also explained a home-based small business network helped job prospects in rural areas as entrepreneurs outsource their work to other small businesses also working from home.
Hancock said: “The government wants to show that this is the best time for entrepreneurs to consider starting a business and that it’s OK to do this from home because they will not be penalised.
Boost for economy
“It’s people wanting to work for themselves that is driving the economy and if we can create a climate for them to succeed, then the knock-on effect will be more jobs and a stronger economy.
“These kitchen table businesses also help the environment because workers are off the road and breathe life into suburbs”
Hancock also acknowledged the government recognises the stress and problems of starting a small business.
“That’s why we want to try to make life easier for entrepreneurs, because their success benefits the wider community and the country as well,” he said.
