New research suggests that 52% of UK’s small businesses are home-based

Two and a half million British companies operate from home according to recent analysis

There are now a record two and a half million home business owners operating across the UK, according to research from Direct Line for Business.

Representing 52% of the total number of Britain’s small businesses and 8% of its total workforce, the insurance company claims the increase in entrepreneurs running businesses from home is due to the current economic climate with people increasingly turning to a more flexible way of working in order to achieve a ‘better work-life balance’.

Areas with the highest percentage of home-based start-ups are in the South East and South West with Herefordshire and the London borough of Wandsworth key areas for home businesses.

A surge of male entrepreneurs working from home is also suggested in the findings, with 1.7m male home-based business owners operating across the country in comparison to 818,000 females.

There is also a reported increase in home businesses in key trades such as catering, photography, hairdressing and arts & crafts.

Jazz Gakhal, head of Direct Line for Business, commented: “Self-employment has been on the rise for several years and our research now shows that a great number of these people work for themselves from home.”

Home business owners across the country:

Region

Home business owners as a % of total workforce

All workers

Home business owners

Male

Female

UK

8%

29,793,548

2,518,117

1,700,272

817,845

South East

10%

4,247,102

432,742

276,412

156,330

South West

10%

2,567,869

254,377

163,707

90,670

London

9%

3,935,959

356,823

230,628

126,195

Eastern

9%

2,912,497

275,818

183,126

92,692

Wales

9%

1,343,541

121,388

91,121

30,267

East Midlands

8%

2,129,370

160,847

111,760

49,087

West Midlands

8%

2,530,170

211,072

143,926

67,146

Scotland

8%

2,463,735

186,893

130,665

56,228

Northern Ireland

8%

797,660

62,961

49,274

13,687

North West

7%

3,191,634

213,103

150,434

62,669

Yorkshire and Humberside

7%

2,496,934

173,933

120,294

53,639

North East

6%

1,177,077

68,160

48,925

19,235

 

 

 

 

 

 

 

 

 

 

UK’s top 15 areas for home-based start-ups:

Area

Home business owners as a % of total workforce

All workers

Home business owners

Herefordshire

27%

92,379

25,084

Pembrokeshire

23%

43,581

10,215

Eastbourne

20%

39,664

8,074

Cotswold

20%

40,591

8,216

Penwith

20%

27,490

5,559

Rochford

20%

39,499

7,973

Caradon

20%

29,649

5,971

Powys

20%

63,990

12,853

Worthing

20%

51,846

10,269

Eden

20%

29,798

5,851

Kensington and Chelsea

19%

84,174

16,011

West Oxfordshire

19%

49,209

9,305

West Devon

19%

23,835

4,500

Shepway

19%

49,059

9,206

Wandsworth

19%

175,858

32,840

 

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