The 2.9m home-based entrepreneurs who trade in Britain are predominantly female, according to a report [PDF] from Enterprise Nation and Direct Line for Business.
Of those surveyed in the report, 64% were women, with the West Midlands boasting the highest concentration of female entrepreneurs at 83%. Young children were part of the picture, however only 28% of female respondents answered that they had children under the age of 10. According to the survey, the most popular sector for female home-based entrepreneurs to work in is the creative services.
By contrast, the East of England has the highest concentration of male home-based business owners, at 40%. In this part of the country entrepreneurs working from home are more likely to be focusing on their venture part-time, while holding down some other form of paid employment.
More than half of the businesses surveyed in the Home Business Report outsource work; according to the responses gathered the 56% that do outsource are on track to create five million freelance jobs.
The survey figures also show that businesses based in the East of England have more international customers and were more experienced than others across the country, with 50% having run a previous firm. However, they are also less likely to employ extra staff or outsource work.
Emma Jones, founder of small business network Enterprise Nation, says the report is proof that the “socio-economic role of the homepreneur has not been properly understood” until now. Jones says that while home-based business owners account for half of the total self-employed sector, they don’t “conform to the characteristics of the rest of this growing category.”
She adds: “There has been no thorough research into home businesses since 2009 and so any assumptions to date have been made on limited evidence. This report finally shows what we’ve understood anecdotally for a while – that homepreneurs are not low-paid hobbyists, they are not being forced to operate under zero hours contracts or longing to get back into the world of employment. Instead they are experienced professionals who are using their skills to create value, spend more time at home and money in their local environment while avoiding the financial and time costs associated with holding down a job.”
The report finds that the creative, business services and professional consulting industries, are the most common sectors for home-based businesses.
In addition, the report finds that the regions with the highest concentration of home-based businesses in the UK are the South East at 19.3% and Greater London at 17.1%. In the West Midlands this figure drops to 11.2%, in the East of England 10.3%, in the South West 9.6% and in the North West 9.4%. The least popular locations for home-based businesses are the North East at 3.8%, Yorkshire and the Humber at 6.7%, and the East Midlands at 7.6%.
The survey results indicate that the South West is one of the areas that is the most heavily populated by young entrepreneurs who work from home; 41% of those surveyed who were based in the area fall within the age range of 18 to 34, with the majority of these businesses established within the last two years. Another popular location for young home-based business owners is the North West, where 53% of those surveyed were aged between 25 and 44.
In response to the question of why they had started a business, one of the top answers from those surveyed was that it was their lifelong ambition. Other popular responses were that launching a business was a chance to exploit an opportunity or a gap in the market, or that they started up because of their insecure feelings about a previously-held job.
The report also shows that the majority of home-based business owners are optimistic about their future growth prospects, with 85% expecting to expand in the next year. A third of these home-based businesses already trade internationally.
However, many of the business owners surveyed are inexperienced, with 69% admitting that this is their first taste of running a business. In addition, for the majority of respondents the main source of business advice comes from their local professional network, trade websites or their friends and family. When asked what would help their business to grow, the overwhelming response was a mentor.
Jasvinder Gakhal, head of Direct Line for Business, comments: “The results of the Home Business Survey clearly show home-based businesses are thriving. They are keeping costs low in starting and growing from home and maximising sales opportunities by leveraging technology.
“In deepening our understanding of this large and growing sector, Direct Line for Business can play a role in ensuring home based businesses get the relevant support and insurance products they need to protect their business and keep on growing.”
The Home Business Report survey was opened on 15 August at a summit held at Somerset House and attended by the Prime Minister. It was distributed to more than half of the 4.9m small businesses trading in the UK. It closed on 3 October, with the results announced on 23 October.
At the summit business minister Matthew Hancock announced a new package of measures designed to boost home businesses.
According to Government figures, home-based businesses contribute £300bn in annual turnover to the British economy.
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This content has been paid for and produced to a brief agreed with Direct Line for Business, whose brand it displays
