The current economic climate is acting as a spur for thousands of people to start up their own business from home.
In the UK, more than 60% of businesses start this way – with over 1,400 new ones launched each week. Home businesses account for more than a quarter of the UK’s employment and everyone is getting in on the action – from the young to over 50s and even stay-at-home parents.
Obviously, those thinking of launching during the current economic turmoil have to weigh up their options carefully. However, slowdowns can be defining moments for people to make the move, especially if they have lost their jobs.
Many who decide to hit the start-up trail launch their own enterprises from home because of their desire for a better work-life balance, to increase their income or to be their own boss. The overheads are also cheaper than renting premises and the benefits to the environment through reduced traffic congestion and energy savings are obvious.
The development of reliable, fast broadband connections and technology and communications that support working from home, means the trend towards more home start-ups will continue in the long run as people are able to manage the full gamut of business tasks from the comfort of their homes.
One interesting trend picked up by BT’s Home Business Report 2008 found an increase in spare time start-ups, with a third of people running a home business in their free time. This thriving 5pm-9pm economy offers would-be entrepreneurs a low-risk route to starting their own business while still retaining a regular income stream from their full-time jobs.
I hear a lot about this growing band of “five-to-niners”, including people such as Paula Green who wanted to make the most of her creative talents but wasn’t ready just yet to go the whole hog and sacrifice her regular job as an account manager at a communications company.
She launched her enterprise Kitty and Polly in 2007 selling handmade gifts and accessories from a spare room in her Belfast home in the evening. The power of modern IT – a good broadband link, an attractive website and a business social network – has helped Paula get the firm off the ground and she is now hoping to go full time as the orders flood in.
Even with the current environment, there is no sign of the growth in home start-ups abating. That’s good news as they mean greater dynamism in the economy, less traffic on the roads, more vibrant communities and closer families as parents stay home to run both businesses and a households.
Ian Bushby is head of start-ups at BT Business