Home Business Report 2009

8/8/2019 Home Business Report 2009

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Compiled by

EnterpriseNation


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Home Business ReportNovember 2009

Introduction from Emma Jones

It has been a good year for home business. The number of people startingand growing a business from home has risen to 2.8 million. Togetherthese businesses contribute 284 billion to the annual UK economy.

More people are Working 5 to 9 which is

the term weve applied to those holdingdown a day job and building a businessat nights and weekends. Its the best way to start as part-time entrepreneurs buildcon dence and cash ow, before making afull-time move into self-employment.

One of the factors in uencing the increasein home business start-ups is enablingand affordable technology. In responsesto the 2009 Home Business Survey, 81%of respondents asserted that technology is critical to the success of my businessand the majority of home businessowners choose websites and blogs astheir rst port of call for business advice.Technology is also playing a liberating roleas survey respondents refer to the freedomand exibility theyre enjoying from beingtheir own boss and an improved work/life balance.

With home business, you can have it all;time with family & friends and a growing business. A signi cant 89% of survey

respondents con rmed they expectedturnover to increase in the next 12months. It is business growth, but not as we know it. Home business owners aregrowing turnover, not headcount. They are outsourcing and sub-contracting asopposed to taking on staff. This re-de nesour attitude towards growth which hashistorically been based on number of people on the payroll. In this report wecall on the Government to ensure businesssupport projects and policies are aligned with this modern approach to building a business.

Growing the business without outgrowing

the home is one of ve themes we focuson in this years report. The other fourthemes look at how home businesses arestarting out, bringing families together,trading across borders and having apositive impact on the local economy andcommunity.

Each theme is illustrated with stories of successful businesses from across theUK. Theres a ranking of the top 100home business hotspots and a summary of how business support is responding toaccommodate the needs of home businessowners.

Great strides have been made in thepast 12 months. Its a year in which we celebrate the UKs rst ever HomeEnterprise Day, Business Link launchesa national home business guide, andcentral Government adopts planningrecommendations to encourage live/work developments.

Yet more needs to be done to encouragethe sector to fully ourish and the nalsection of the report calls on various bodies to take action. I hope our calls will be heard and heeded.

Emma JonesFounder, Enterprise Nation

EnterpriseNation


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Introduction from John Anderson

Through our regional relationships and activities we are fully aware thatthe nature and shape of business enterprise is changing. Despite thechallenging economic times many have reacted positively, taking theopportunity to start their new businesses from home, at the heart of theircommunities.

This report highlights that an incredible

32% of respondents to the Home BusinessSurvey started their business in the last12 months, many turning redundancy into opportunity or inspired by the desirefor more exibility and control in their working lives. We are seeing more start-ups than ever before entering traditionalroles and professions working from homealongside a new breed of entrepreneursdiversifying to create new types of businesses.

Home-based businesses are thinkingdifferently and we believe that therecession has been a factor in spurringon this innovation. There are moreskilled people in the labour market thanin previous years who are able to take work when its available and when it suitsthem. The availability and increasingly wide-spread deployment of technology isdriving many of these changes. The resultsof the Business Pulse, the largest survey of small businesses to be undertakenthis year, showed that businesses who

consider it essential to be at the forefrontof technology are the ones also sayingthat they have been least impacted by therecession.

Faster broadband is considered to be the

technology most likely to impact positively on business. Businesses who need toexchange large les and/or graphics is just one example but the possibilities areendless. Mobile technology is also creatingan impact. The exibility of working fromof ces, homes or just about anywhere is afurther enabler for networks of people to work together, wherever they happen to be.

It is clear that home based entrepreneursare the lifeblood of their localcommunities and regional economies.Now more than ever the right supportand resources must be available to allow them to compete and prosper today and beyond. In BT we will continue to work with partners across the regions andnations championing the small businesscommunity to help them survive andthrive. John AndersonManaging Director, BT Regions


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4 Home Business ReportNovember 2009

Its an inspiration to see so many people boldly responding to the recession bystarting new businesses from home. The Home Business report shows technology to bea key enabler to this trend with 81% of survey respondents stating that technology iscritical to the success of their business. Its great to see that businesses in this sector arealso early adopters of social media, with 74% using social networking sites, such as BT Tradespace, to attract new customers and defy the challenges of todays economicclimate. This is a fascinating time and a moment in history when we are seeing thegreatest and most prosperous shift in working lives. The tools and advice are all there. Be prosperous and enjoy them.

Bill Murphy Managing Director BT Business

One of the most signi cant features of the present post-industrial era is thebreakdown of the sharp distinction between spaces of work and home. The home isincreasingly becoming a place of work rather than a respite from it.

This trend is clearly re ected in the entrepreneurial economy, with more businessesstarted in the home than from separate premises.

Indeed, it has never been easier to start a business from home. Information and communication technology are becoming ever more powerful, access to open sourcesoftware is increasing, the internet enables e-commerce and collaborations betweenindividuals who are geographically separate, and virtually every business functioncan now be outsourced.

Even more signi cantly, the home is not simply a temporary location. The majorityof home based businesses continue to operate from home as they mature. Hence,any discussion of entrepreneurial activity has to recognise that the home is, and will continue to be, the most popular business start-up location.

Global Entrepreneurship Monitor, 2007/08


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The majority of small businesses operate from the founders home. Despite this,they are unappreciated and ignored in the economic development strategies of local,regional and national governments.

This re ects a combination of their invisibility and the lack of an evidence base,resulting in a stereotype which dismisses them as lifestyle businesses, largely runaround family needs and economically insigni cant.

Prof Colin Mason, University of Strathclyde

If you start a business right, you grow it better and one should question just about everything one spends in a startup. Think of it as weight. The more money you spend the heavier your business is and the more it weighs you down. The less you spend theeasier it is to keep a oat, the less revenue it takes to stick around and the more likelyyou are to survive your rst year. Home businesses are light weight and light touchand anything that encourages this sector to ourish should be welcomed.

Doug Richard, CEO, School for Startups

In running the business from home, Im reducing travel, encouraging people to havea work life-balance and working at the same time as managing not to neglect my family. To recognise the contribution Im making (along with all other home businessowners), a clear government policy and supportive taxation approach would bebrilliant.

Home business owner, Somerset


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Report partnersThis report has been compiled by Enterprise Nation and is sponsored by BT.

With thanks to BT for their continuingsupport in enabling the production of thisreport.

About Enterprise NationEnterprise Nation[www.enterprisenation.com] is the home

business website. Over 100,000 people visit the site each month to read lively features and watch the home businessshow. In addition to the site, EnterpriseNation hosts the Home Business Awards,produces the annual Home BusinessReport and offers resources in the form of

books and online tools to anyone startingor growing a business from home.

Enterprise Nation also lobbies central,regional and local government on thetopic.

For more information visit www.enterprisenation.com www.twitter.com/e_nation

About BTBT is one of the worlds leading providersof communications solutions andservices operating in 170 countries.Principal activities include networked ITservices, local, national and internationaltelecommunications services, and higher

value broadband and internet productsand services.

BT RegionsIn the regions BT is at the heart of thehome business community. BT hasspeci cally aligned itself with the EnglishRegional Development Agency (RDA)

boundaries, Wales and Scotland to betterunderstand and respond to the needs of home based businesses.

Working with partners and organisationsacross UK Regions, BT is helping tostimulate and educate home based

businesses of all sectors to fully understand the role and bene ts thatICT and communications can play;helping them to grasp the opportunitiesit presents to grow and prosper their

business.

For more information visit www.btplc.com/Thegroup/BTregions/BTregions.htm

BT BusinessBT Business is BTs specialist divisiondedicated to serving the UKs smalland medium-sized businesses. It works

with more than 1 million businessesacross the UK offering advice and ITand communications services that allow

businesses to focus on what they do best from start-ups and home-basedenterprises to signi cantly larger multi-site organisations.

BT Business offers a complete range of services to help businesses thrive, helpingthem to manage their costs better, bemore productive, extend their businessreach and be responsive to customers.

From, BT Tradespace (www.bttradespace.com), the rst social

business network to launch in the UK, which gives small businesses a quick andeffective way of making their businessstand out online, build lasting businessrelationships and sell effectively to

exible working solutions that ensure

businesses can work from where everthey choose.

BT Business Insight offers free advice andguidance to smaller enterprises for allstages of building a successful business at

www.insight.bt.com

For more information on how BTBusiness can help small businesses go to

www.business.bt.com

Report Contributors With thanks to Professor Colin Mason of The Hunter Centre for Entrepreneurshipat the University of Strathclyde, andInfoUK, for their contribution to thisReport.

Hunter Centre forEntrepreneurshipThe Hunter Centre for Entrepreneurship,located at the University of Strathclyde, isa world-class centre of entrepreneurshipeducation, research and outreach. TheHunter Centre teaches over a thousandstudents a year and is recognised as oneof the largest, most successful university centres of entrepreneurship in the UK and Europe.

Professor Colin Mason, who has assisted with this report, is a world-recognisedexpert in Business Angel and VentureCapital. With over 150 publishedpapers to his name, he is author of The Characteristics of Home BasedBusinesses, July 2008

For more information, visit www.strath.ac.uk/huntercentre

Info UK With headquarters in Manchester,infoUK is a business data and marketingcompany that helps businesses ndnew customers, grow sales and theirpro tability. infoUK compiles and

veri es its extensive business database,containing information on more than 2.2million businesses, through an in-house

team of telephone researchers who makeover 40,000 calls a week. The company provides the latest information for directmail, telemarketing, mobile SMS andemail marketing purposes. The company has compiled the top 100 home businesshotspots ranking for the purposes of thisreport.

infoUK provides a wide range of data andmarketing services to small and medium-sized businesses and home businesses,including email marketing campaignsand online data cleansing to ensure all

contact details are up-to-date, accurateand fully compliant with the DataProtection Act.

For more information, visit www.infouk.com


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ContentsReport Highlights 8

A Journey of Discovery 10

Five Key ThemesGrowing the business without outgrowing the home 12 Working 5 to 9 Start business. Trade with the world. 20Family ties 24The local impact 28(incorporating Top 100 Home Business Hotspots)

Enabling Home Enterprise: A call for action 35

Appendices Appendix I: 2009 Home Business Survey results 40 Appendix II: Bibliography

Profled home businesses

London Bodie and Fou and Minimyne

South West Portfolio DirectorsScotland Miso Funky and Tartan TwistNorth East Useyourlocal.com Yorkshire & The Humber Lorraine Ellison and Cheryl/Katey WalshNorth West Curl Harmony South East The Fine Cotton Company East Midlands Peak Princess and Swiss Luggage West Midlands Another Gorgeous Day Wales Gower Cottage BrowniesEast of England Peruvian Knitwear

Northern Ireland Iddictive


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Report highlights


There are 2.8 million businesses operating full time fromhome, contributing 284 billion to the annual UK economy.This is an increase of 300,000 businesses over the past 12months.

The recession has contributed to this increase with 32% of respondents in the Home Business Survey having startedtheir business in the past 12 months. This is on account of redundancy, or people opting for a new career path that

involves regaining control over their working life; 49% of respondents con rmed what they are enjoying most about being their own boss is freedom to make my own decisions.

Whether starting a business out of necessity or choice, anincreasing number of people are basing the business at home. According to the 2009 Business Pulse*, of businesses startedin the past 2 years, more than double the number of peoplestarted from home (22%) as opposed to out of home premises(9%)

The most popular factors selected in the Home BusinessSurvey for starting from home were lower start-up costs (57%), better work/life balance (52%) and being close to the family (33%)

Home businesses started before the recession have not hadto dramatically change their strategy or practices. Accordingto the 2009 Business Pulse, of the 37% of businesses whosaid they had noticed no changes in the way they operateon account of economic conditions, 47% were home based

businesses, compared with 28% of non home based businesses. We attribute thisbusiness as usual policy to the fact that home businesses are operating on low overheads, making the most ef cient use of technology, and often selling into nichemarkets.

Home businesses are growing by outsourcing and subcontracting work, as opposedto taking on staff. 89% of home businesses expect to increase turnover in the next12 months and plan to do so by using freelancers/outsourcing (45%), and makinggreater ef ciency of existing resources (42%) Only 4% of respondents said they would grow by hiring full time employees.

Technology remains a key enabler to starting and growing a business from homeand home businesses are early adopters of social media, with 81% of survey respondents stating that technology is critical to the success of their business and74% using social networking sites to keep in touch with other businesses.

Technology also offers the potential for increased international trade. Coupled with tailored advice on how to access overseas markets and nd local partners, this could be a powerful driver of economic activity.

*Over 7,200 small businessescontributed to the 2009 Business

Pulse, the UK's largest survey of small businesses this year. It wascommissioned by BT Business,

NatWest, British Chambers of Commerce, Business Link, ACCA,Growing Business, everywomanand supported by The DesignCouncil and The Prince's Trust.

Home business across the regions/nationsRegion/nation No. of home

businessesContributionto UK annualeconomy (bn)*

London 540,176 67.3South East 448,247 44.9East of England

286,161 28

North West 258,581 26.1South West 266,519 21.9 West Midlands 207,190 21.4 Yorkshire &The Humber

199,293 18.8

East Midlands 183,411 18.3Scotland 186,327 18 Wales 116,767 9.1N Ireland 71,300 7.7North East 78,573 6.7

* These gures are estimates and are calculated from theregional datasets given for Small and Medium Enterprise

Statistics for the UK and Regions 2008, published onWednesday 14 October 2009. Source: Department for Business

Innovation & Skills


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There has been a 9% increase in Working 5 to 9 the term we apply for peopleholding down a day job and building a business at nights and weekends. Its the best way to start as business owners build con dence and cash ow before moving fulltime into self-employment.

The sectors showing the most signi cant growth are business services (businessconsultancy, legal, accountancy, architecture/design, training, outsourced services)and consumer services (arts/crafts, domestic repairs/services, beauty/wellness,tutoring, caring)

The over 50s are well represented when it comes to home business; 68% of HomeBusiness Survey respondents are between the ages of 36 and 59, with the majority (36%) falling in the 45-59 age group. This is re ected in the 2009 Business Pulsethat showed of the almost quarter of respondents who were over the age of 55, morethan double (30%) were running their business from home, compared with an out-of-home location (17%)

Home business is bringing families together and we are seeing the emergence of multi-business homes where more than one business is run under a single roof. 18%of households responding to the Survey are home to at least one business and weexpect this gure to continue to rise.

The Top 100 Home Business Hotspots ranking is based on an analysis of 550,000 SoHos (Small Of ce Home Of ce) and shows the areas with the greatestconcentration of home based businesses. In terms of the regions with the largestnumbers of areas appearing in the Top 100 listing, the South East leads, followed by Yorkshire & The Humber.

The areas that do act to encourage and support home business will reap bene ts fortheir local economy and environment. Based on a study by Bradford University it isestimated that having BT employees working exibly and from home has reducedcommuting costs, saved 12m litres of fuel and reduced CO2 emissions by 97,000tonnes

When asked what is the one thing you would like to see in your area that wouldhelp your business, 43% responded with events & networks for home businessowners which is, in turn, driving the growth in home business hub facilities.

There is more that could be done when it comes to tailored business support. Whenstarting out, home business go online to seek advice and support (27%) closely followed by turning to government bodies such as Business Link (25%) but 16% of respondents con rmed they dont go anywhere for advice.

The majority of home businesses fund their start-up through personal savings (75%) with the next preferred option being friends & family (20%)

What else did we learn in 2009? That the spare room retains its top spot as the location of choice for the home of ce!


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A journey of discovery


As well as contacting over 1,230 of our members for the 2009 HomeBusiness Survey we also for the rst time ever embarked on a home business roadtrip. Over the course of the week commencing 14thSeptember the Enterprise Nation team journeyed 1,233 miles, lmed18 home businesses and picked up further data around the ve themesre ected in this report. This is what we saw and heard

Now is a great time to startThe mood throughout the week was incredibly upbeat. When Patrick Elliott (CEO

of Business Link in London) opened an event with a question to the audience of Do you think this is a good time to start a business? a ripple of 200 voices replied aresounding yes.

Technology means trade All of the businesses lmed are making the most of technology, whether it be StuartMills [www.useyourlocal.com] who is applying the web to the pub world, or MalcolmGallagher [www.bizvision.biz] who is communicating his business message throughonline videos; produced from a home studio. Many of the craft businesses are usingsites such as Etsy.com and MyEhive.com to sell their products to a national andinternational audience. Technology is broadening the trade and partnering horizonsof many a small business.

Freedom & controlHaving started up, home business owners are nding freedom and exibility in their working lives and relishing being in control of their creativity, working environment andearnings.


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EthicalEvery business owner interviewed is doing something good by being in business; whether it be Clare Nicolson [www.clarenicolson.com] who believes in giving work to the people in her neighbourhood, Emma Henderson [www.showpony.co.uk] whosources fair trade fabrics from India or Emma Warren [www.portfoliodirectors.com] who offers time and business experience to a charity. They would not refer tothemselves as ethical entrepreneurs as such but these business owners are having animpact in many a varied way.

Growth through outsourcingThe adage of do what you do best and outsource the rest is being taken seriously.Companies are partnering up and work is being outsourced to professionals. Technology tools such as VoIP (voice over Internet Protocol), email and project managementsoftware means theres no need to be in the same place but for others, physical networksare important as a place to meet business partners, and also just to have a social chat!

Locations visited

Scotland - Glasgow North East Whalton and NewcastleLondonSouth West Bristol and Exeter West Midlands - Shropshire


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Theme I:

12

Growing the business without outgrowing the home

Home based businesses are following the principle of do what you do best andoutsource the rest they are growing the business through increasing turnover, notheadcount, and sub-contracting to expert freelancers and professionals, as opposed totaking on staff.

In response to the 2009 Home Business Survey, 89% of respondents con rmed they expected turnover to increase over the next 12 months. When asked how this growth would come about, the results were as follows:

The gure of 45% saying they will grow through usingfreelancers and outsourcing is an 8% increase on the responseto the same question in 2008 (37%); con rmation thatoutsourcing is on the rise.

In ndings from the 2009 Business Pulse, of the 60%of businesses questioned with less than 5 employees, asigni cantly higher number of businesses with 1 employee were home based (49%) as opposed to out of home (6%) and41% of businesses with 2-5 employees were home based,compared with only 28% based in of ces outside the home.

Home business owners are staying small when it comes to number of employees, yetare ambitious to achieve growth in turnover. This is happening successfully throughoutsourcing non core functions to experts and professionals.

Functions such as:

Admin AccountingFul lment

Sales & Marketing Web design and developmentPay-as-you go software and services


Will this planned growth require you totake on new employees? Yes - full-time employees 4% Yes - part-time employees 9%No - will use freelancers or will outsource 45%No - greater ef ciency of existingresources

42%

Will this planned growth require you to take on new employees?Total Based at home Not based at home

1 26% 49% 6%2-5 34% 41% 28%

6-25 18% 7% 29%26-50 8% 2% 14%

51-100 6% 1% 11%101-200 5% 1% 8%201-250 2% 0% 4%

More than 250 0% 0% 0% Source: BT Business Pulse Survey, October 2009


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This move is presenting service providers with clear opportunities.

We have seen a signi cant increase in custom from home business owners as theyask themselves why they should hire someone to take calls when Moneypenny can dothe job at a competitive cost, and without the commitment that comes with taking onstaff.

Joanna Swash, Marketing Director, Moneypenny PA

The rise of the VA (virtual assistant) industry goes hand in hand with the increasewere seeing in outsourcing. People starting and growing a business know they need to have admin covered but are reluctant to hire someone to do this full time, on the payroll. Working with a VA means working on a project and agreed fee basis. I fullyexpect to see more businesses grow by hiring services, as opposed to people.

Carmen MacDougall, VA Coaching and Training Company

The move to outsource is also leading to the launch of a number of websites that match business owners with the talent they seek, such as www.peopleperhour.com and www.businesssmiths.co.uk

As explained by Professor Colin Mason:More and more costs of doing business are becoming variable rather than xed onaccount of increasing opportunities to outsource (e.g. distribution and shipping),reducing start-up costs.

For example, internet sites make it possible to recruit freelance programmers and webdesigners from around the world. Powerful ICT technology in the form of cheap andpowerful personal computers and software, and other innovations (e.g. express parceldelivery, printing and copying) have provided small businesses with the power, scopeand access of large companies, enabling them to look, perform and compete like large businesses, but without sacri cing the independence and exibility of being small.

Small businesses are increasingly able to access technology through plug andplay access and open source hardware. Online social software and other connectivetechnologies are encouraging collaborative relationships between small businesses.

This modern form of business growth presents a challenge and opportunity to businesssupport providers.


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Call to action We call on central government, development agencies and business support bodies,to ensure business support programmes and projects are aligned to this new andmodern form of company growth. Grants and support should be allocated on growth inearnings, as opposed to growth in employees. Reward and recognition should be givento companies working to expand their websites, not warehouses.

Home based businesses may not be employing staff full time but they are pumpingmoney round the economy by utilising the services of contractors, freelancers andother self-employed professionals. This should be more keenly taken into account inthe design and development of business support programmes and grants/incentiveschemes.

Home-based business seems to be offering policy makers a win-win for both theeconomy and the environment. So why is policy making so dominated by the old economy approach to employment premises and enterprise?

Tim Dwelly, Director, Live Work Network

Bodie and FouKarine Kong is one of the two founders behind online boutique, Bodie and Fou; theother founder is Karines sister, Elodie. Together they are building a successful, andinternational, business by outsourcing to experts and partners.

Elodie and I launched www.bodieandfou.com in May 2005, two weeks before Igave birth. We were super naive and thought it would be this amazing wow in cyberspace but in fact the rst month we got one sale and the in the second month oursales increased by 100% and we got two! Luckily things picked up pretty quickly after that with the business growing around 100% per annum even last year in thetight conditions, and it also looks like it is on track to do the same this year.

The sisters run the company from two home of ces in different countries. Karinetakes care of the day-to-day running of the business whilst Elodie focuses on thecreative aspects and together they work on nding designers and exploring new areas in which the business can grow. Rather than take on extra staff, Karine andElodie decided to outsource website design/development and accounting; bothfunctions being carried out by home businesses based in Bristol.

Outsourcing work to Jim (our web man) and a dedicated bookkeeper means I canspend more time on building our collection and our brand. Technology makes thisan easy relationship; we use Skype, email and the telephone and it just goes to show,it doesnt matter where you work, the job can still get done. This is how we intend tokeep on growing the business.

www.bodieandfou.com


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Swiss LuggageSwissluggage.com is one of a family of websites retailing top quality luggage,daypacks and other travel accessories. Its a family run business run by a husbandand wife team who are employed by day and run their business at nights and weekends. Making it even more important that they ensure every minute they spendon the business, counts.

As the business has developed they have outgrown the garage, imported a higher volume of stock and rented local pay as you go Warehousing. They got to a point

following their Christmas peak where they realised they did not get into the businessto spend their free time picking and packing; they wanted to focus their time ondeveloping the site, brand, af liates and winning new customers.

Managing Director of the business, Brent Shaw, decided to check out a new ful lment provider, myWarehouse:

As you can imagine it was a nervous decision to outsource as its like letting go of achild and giving it to someone else to look after this was our baby and it was very important that we felt someone else would continue to manage our pick, pack andship solution in the same way and with the same expectations we had set out. Fivemonths on, we are happy, orders have risen month on month and we have been ableto focus on further developing the Swiss Luggage brand

www.swissluggage.com

Portfolio DirectorsEmma Warren knows a good deal about growing businesses. Thats because shes been involved with a fair few of them; managing them, buying them and nancingthem. Shes now applying her experience and expertise to running her own business,Portfolio Directors, which is based in Emmas stylishly converted garage:

We have a dedicated team of ve, and work with owners and company directors to

get them past tricky stages in their business cycle. In the team of ve there are three working Mums. One of the Mums works from home and comes over every coupleof weeks, and the other Mum and I ex our time to make sure we can do SportsDay etc the business has been set up so you never feel guilty about working fromhome/missing work to do something you need to do for yourself.

As well as offering exible employment, Emma is a role model case study whenit comes to outsourcing work as she partners with other companies and utilisestechnology to ensure her company can continue to grow (without outgrowing thehome) and offer top advice to clients:

We are currently evaluating cloud computing developments. This involves creatingsecure client areas with information dashboards using SharePoint or Huddle which are online document facilities. Its important to have a scalable solution and with this the skys the limit!

www.portfoliodirectors.com


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The Fine Cotton Company Jane Robson had a career background of working for top high street brandsincluding Debenhams, Top Shop, Homebase and Habitat. But after adoptingher daughter she was looking for a more exible way of life. Shes found that in being the boss of The Fine Cotton Company which supplies organic bedlinen andhomewares and is growing by successful outsourcing.

I run the business on my own and have learned many new skills in the last 18months. It has been a steep learning curve for me. I have done various short courses

in a wide range of business related subjects to gain knowledge.If Im unable to tackle something I call in friends who specialise in certain areas tohelp. Generally I have someone working with me most weeks. I outsource any areasof expertise that I need such as the website design, photography and accounts.

Jane also turns to the specialists when it comes to storing stock and ful llment. At the start, Jane was using a local warehouse and packing and distributingorders herself but as orders increased she recognised it was more cost effective tooutsource.

The distribution team are experts in their eld and make a much better job than Icould do!

Jane plans to continue growing the business over the next six months by focusing oncustomer service and satisfaction and continuing to outsource to the professionals.

www.the necottoncompany.com


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Theme II:


Working 5 to 9

The number of people holding down a day job and building a business at nights and weekends has increased from 33% in 2008 to 42% in 2009. We have termed this formof business start-up as Working 5 to 9 and its clearly taking off!

There are a few factors explaining why this is happening:

Protection against redundancy Employees concerned about their job prospects have responded

by building a business on the side to safeguard against futureloss of employment and earnings.

Unleashing creativity Many 5 to 9ers do something quite different to their day job and see the business as acreative outlet.

Technology advancesTechnology at affordable prices has enabled Working 5 to 9 to ourish. A mix of gadgetsand applications keep you in touch with business round the clock and with PayPalpredicting a boom in online spending (from 8.9 billion in 2009 to 21.3 billion inannual sales by the end of 2011), many 5 to 9ers are turning to the web to promote andsell products.

Its the best way to startBeing in the position of having an idea yet needing the time for it to develop and sales togrow, means starting out whilst holding down a day job is simply the best way to start. You get the security of a salary whilst building con dence and cash ow in your new business.

Factors pointing to this trend include:

Peak hours for accessing the internet are from 5 to 11pm, according to one of themost sophisticated research programmes undertaken in to broadband speeds inJanuary 2009*

The number of Britons with a full-time or hobby eBay business has grown 160% to178,000 in 2 years **

Research carried out with of ce supplies company, Staples, in May 2009 showed anincrease in footfall to their stores between the hours of 5 and 8pm. ***

In a poll carried out by BT Tradespace in October 2009, 65% of respondentscon rmed they were building their business at evenings and weekends with 35% of respondents as full time business owners.

*Source: OFCOM and Samknows.com Research fromtests run through monitoringunits connected to around 1,500homes and a range of suppliers services.** eBay annual results, 2008*** Working 5 to 9 how tostart a business in your sparetime by Enterprise Nation, withsupport from Staples. This is thetitle of a book to be released by

Enterprise Nation in January 2010

Do you run your business part time fromhome?2008 33%

2009 42%


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Miso Funky By day, Claire Brown is a sub text writer for a TV company in Glasgow. Its a jobshe enjoys but doesnt feel utilises her full creative talent. Which is why when shereturns home at night, she becomes boss of Miso Funky, a craft business sellinghandmade goods via Claires own online store and Etsy.com

When not operating in the virtual world, Claire also sells her products at craft fairsand markets; a good number of which are organised by Glasgow Craft Ma a, of which Claire is an active member.

Ideally, I would like to build sales in Miso Funky so I can give up the day job butas each product is hand made, Im now considering how I grow a business thats sodependent on my time and efforts. Im working on it so please come ask me again in12 months!

www.misofunky.com

Call to action Working 5 to 9 is a way of working and a route to starting a business that should be actively encouraged. Its low risk, low cost and gives people time to develop thecon dence required to ease out of employment and into self-employment.

Support programmes should ensure they do not exclude this community of part-timeentrepreneurs by having support available only on weekdays and during of ce hours.

Jonathan Dowden, enterprise manager at North East agency, Entrust, has been triallinga 5 to 9 business support hotline and says:

Having recognised a rise in the number of people starting a business whilst holdingdown a day job, we wanted to ensure our support was tailor-made for this audience.We launched a 5 to 9 telephone service so 5 to 9ers can call and access support at atime to suit them. The service has been available since July 2009 and is growing in popularity.

We call on more enterprise agencies and business support providers to follow thisexample.


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Curl Harmony Nadine Harding was in full time employment when she came up with the idea forCurl Harmony. I always intended to stay in employment and be a 5-9er, however, I was made redundant in June 2008 before I launched the business. I used this extratime to focus completely on my ideas.

The idea had come because Nadine found it dif cult to nd natural products for herown afro hair and by researching the market realised others were having the samestruggle. She turned her spare room in to a lab and started to experiment.

I gave samples to friends, family and also strangers to evaluate. Their positivefeedback gave me the con dence to go to market with my products.

Nadine manufactures, lls and labels all the bottles by hand but this may not be formuch longer. Business has picked up so much in the past 12 months that Nadine isin need of help:

Ill be looking to contract out the manufacturing side of the business to free upmore time to concentrate on marketing and sales so I can keep growing this 5 to 9occupation that keeps me going!

www.curlharmony.co.uk

Another Gorgeous Day Barbara Steadman refers to her life as a case of numbers by day and words by night. Thats because her day job is being a Finance Director for a College and herevening activity is running online gift store, Another Gorgeous Day. The company provides gifts with special quotes.

To set up this 5 to 9 business, Barbara has had some helping hands from the family.

My Dad helped with my show stand and store room. Mum is chief data input clerk

for the website, my sister keeps me focused and then my husband stupidly saidone night is there anything I can do to help? The next day I enrolled him on aphotography course so he can take all the product shots. Most importantly, they allgive me encouragement and are very proud of what I am doing.

With an impressive and professional website, the business is growing nicely andBarbaras plan is to build sales so she can concentrate full time on being her own boss. With growing sales comes a need for more product photos so her ultimateambition is to have hubby leave his job too!

www.anothergorgeousday.com


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Theme III:


Start Business. Trade with the world.

In his paper Characteristics of Home Based Businesses, Professor Colin Mason madethe point:

The proportion of home based businesses deriving more than half their sales fromoverseas customers although very low (6%) is actually greater than for other SMEs indicating the presence of a small proportion of home based businesses that arehighly export oriented.

Horsham District Council has pioneered events for resident home based businesses fora number of years. In research commissioned by the Council in 2008, it was reportedthat of the home businesses surveyed, 15% were serving international markets (AbacusInsight, 2008).

In Summer 2009, the eBay quarterly online index con rmed the natural match betweenonline business and international trade:

There has been a huge increase in the number of exports as online businesses takeadvantage of the cross border sales opportunities presented by the internet. Sellingonline allows sellers to reach a wider market with low overheads which is critical inthe current economic climate. There was a 127% increase in cross border online tradein 2008 compared with 2007.

With the Euro now signi cantly stronger against the Pound, export opportunitiesin 2009 are even greater than a year ago. So, we expect cross border trade within Europe to grow even further over the next 12months as sellers take advantage of thechanging exchange rate.

Yet we feel there is a need for advice on expanding into overseas markets to be mademore readily and clearly available to home based businesses.

In responses to the 2008 Home Business Survey when askedIn the next 6 months, what do you plan to do? 19% respondedexpand internationally yet in this years survey evidence shows

the majority of respondents having nil or under 5% of theirrevenue coming from international sales.

The potential to increase international sales is not beingrealized, yet could be with dedicated advice around the topicof international marketing and seeking local partners. Thetechnology is in place and home businesses feel comfortable inusing the tools and applications at their disposal. There is also aphysical infrastructure, through the global network of servicedof ce providers. What is lacking is a clear route to accesstraining on the cultural and growth aspects of expanding intonew and international markets.

Approximately what proportion of yourrevenue come from foreign sales?

Nil 67%Under 5% 20%6-24% 8%25-49% 3%50-99% 2%100% 0%


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An example from the arts/craft sector:From home to international markets

Upload products to platforms such as Etsy and My Ehive.com

Utilise sites such as Lingo24.com and Translate Media for translation

Ship products around the world via courier services such as parcelmonkey.com

Accept international payments with PayPal

Have a local address through virtual and serviced of ce provider such as Regus ornd work space through sites such as istopover.com

Reach new audiences and sell to the globe

The internet, money transfer mechanisms, reliable global shipping, the decline ininformal trade barriers and networks created through immigration have all made it easier for small businesses to serve global markets.

Prof Colin Mason

MyEhive.com offers artisans a window to the world. When sellers upload their handmade items they open themselves up to an international marketplace. Withdemand for British arts, craft and fashion on the rise, home based businesses aremaking sales to customers overseas but I think they could generate even more customwith training that introduces sellers to the opportunities in international markets and to local suppliers/stockists and partners.

Louise Campbell, MyEhive.com

Call to action Websites offer an affordable and always-on platform to make sales across the globe.This needs to be supplemented with tailored training on business development,cultural awareness and partner-matching. With an international toolkit for home based businesses, we would see an explosive increase in the level of overseas trade and salesfrom UK home businesses to international markets.

UK Trade & Investment could play a role in this, as could Global Entrepreneurship Week, by matching home businesses with peers from across the globe.


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Lorraine EllisonBased from home in the beautiful surrounds of North Yorkshire doesnt preventLorraine Ellison from trading with the world. Having been an International Directorfor a Chamber of Commerce in a job that involved organising and leading trademissions and exhibitions all over the globe, Lorraine started her own company inSpring 2004.

My work now, as ever, has always involved my network which is alwaysincreasing. I offer business support, marketing and pr to a range of clients

worldwide. My main client is Lord Digby Jones who is the former Director Generalof the CBI and Minister of Trade & Investment. I manage his business activities andlook after his brand development, pr and media.

The mainstay of Lorraines operation is her BlackBerry which is switched on 24/7and neighbours who are on hand to offer homeworking support. In my own tiny village most people work from home in one way or another. Some are farmers andone lady runs a successful dotcom business and employs a number of local people.

As for what Lorraine most enjoys about running international projects from home:I would say the exibility. I couldnt face commuting day in and day out it isdead time and I would nd it very frustrating. Having worked a lot on my own overthe years, in Africa and other parts of the developing world, you become very self motivated and I nd I work better in my own environment.

Tartan TwistGillian Crawford and Lyndsey Bowditch are sisters. They are also co-founders of Tartan Twist, a highly successful business selling Scottish styled jewellery at home,and now overseas.

We were aware fairly early on that Tartan Twist had an international appeal.Publicity in Scottish Field Magazine and The Sunday Post, both of which have astrong ex-pat following, led to a big boost in web sales from overseas customers.

The company then won the contract to design the of cial pendant for The Gathering2009 which was the biggest event in The Year of Homecoming 2009 and saw over50,000 visitors, many from overseas, descend on Holyrood Park. Tartan Twist wasinundated with customers and knew they had to do something to make the most of the appetite for their products from an overseas market.

When an overseas customer invited us to meet up in the Far East to discusspossible tie-ups we turned to Scottish Development International for help. They helped fund the trip which meant we were able to make the trip sooner than we hadanticipated. We are now selling in Japan and Australia to multiple outlets and wehave had interest from the US and Italy. As a result of our experiences with overseascustomers and the help we have received from Scottish Enterprise, we have built astrong overseas offer into our on-line shop for both wholesale and retail customers.

www.tartantwist.com


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Peruvian Knitwear Amanda Ruiz came up with the idea for her business after becoming a Mum: When my rst child was born we received lots of gifts from Peruvian relatives ponchos, chullos (ear ap hats) and cardigans. They were widely admired and I soonrealised there was a gap in the market for clothing that was different to the highstreet offer. We launched the business in September 2007 to catch the Christmasgift market.

Amanda visits Peru regularly to nd suppliers, sort logistics and meet the localartisans.

I have used the HMRC website http://customs.hmrc.gov.uk/ when I neededmore information on setting up a temporary VAT number to import goods, plusinformation about duty: Peru is one of 16 countries where duty is not payable uponproduction of a GSP or certi cate of origin.

The company is doing well and bene ting from good publicity as journalists love theclothes as well as the story of a Mum of two selling Peruvian woollies! Amanda isdriven by the fact that each time a sale is made, someone bene ts: My most memorable highlight in the past 12 months was when I was chatting to my factory owner in December. She told me that as a direct result of the orders comingfrom Peruvian Knitwear, she had taken on two new members of staff. This is suchgood news in these depressing days of the credit crunch. Peru is a poor country (approx 45% of people live under the poverty line) so to learn that we have all madea difference is excellent news.

www.peruvianknitwear.co.uk

Iddictive.comMark Nagurski may be based in Northern Ireland but he pulls on ideas and trends

from across the globe. His site, www.iddictive.com, is a melting pot of interestingideas and innovations that readers can apply to starting their own business or asmarket intelligence.

By creating a cost-effective online presence Mark has attracted an internationalreadership and has bold ambitions for expansion.

www.iddictive.com


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Theme IV:


Family ties

One of the most in uencing factors when people start a business from home is toachieve a better work-life balance, as quoted by over half of Home Business Survey respondents. When asked how they spend extra time earned each week by dropping thedaily commute, 29% of respondents said they get more involved in family activities andmore than three quarters of respondents con rmed technology has enabled them toachieve more exibility in their working lives.

Home business owners are not only spending more time with family members, they are

involving them in the business; 20% of home businesses turn to friends and family forstart-up advice and in the 2008 Home Business Report 58% of respondents con rmedthat a member of the family worked with them/helped out in the business. This is now going as far as starting businesses together or running separate businesses, yet from thesame home.

According to the Home Business Survey, 82% of homes are resident to only one home business owner but a number of these business owners run more than one business(73% of homes have one business owner, running only one business but 24% of respondents con rmed at least one business being run from one home) We expect tosee an increase in multi business homes as partners/spouses/parents/grandparentssee the bene t of running businesses together, or collaborating across respective businesses.

Running a home based businesses is seen as providing a exible form of economicactivity (e.g. number of hours worked, time periods worked and location of work) and an enhanced quality of life which people are increasingly willing to trade-off against economic prosperity.

The ability of a home based business to combine work with family is presented as being a particularly attractive option for young mothers (mumpreneurs). Thebusiness enables them to keep up their professional, intellectual or artistic interestsand earn an income without compromising the needs of the family. Some studies havealso noted the bene ts that children derive from having a parent, or both, who run ahome based business.

Professor Colin Mason

The ability to start and grow a business from home has enabled thousands of Mumsto have that much-desired combination of being able to earn a living thats equivalent to a full time wage, whilst being on hand for the family. Of course its still a jugglingact we all continue to try and perfect but having the freedom and exibility to choosethe hours you work and being at home when the kids need you, makes for a happy and stable family environment.

Jayne Graham, MD, 2020 Consulting and Director, Women in the Network


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Home business is good for Mums and Dads and its also working well for the over 50s.The majority of respondents to the Home Business Survey came within the 45-59 agerange (36%) and ndings from the 2009 Business Pulse show of the 23% of peoplestarting a business over the age of 55 in the course of the past two years, more thandouble the number started from home (30%) as opposed to out of home (17%)

What this presents is an opportunity to match the business experience and connectionsof olderpreneurs with the bright young things starting businesses, straight out of School/College/University.

This call was made by serial entrepreneur, Luke Johnson, in his inaugural lecture asChairman of the Royal Society of Arts in October 2009. He is a champion for the causeof olderpreneurs and says:

Interestingly, the level of self-employment among the 50-plus age group is around one in ve one and a half times the level of entrepreneurialism across all ages. I seethis trend growing because low interest rates and the death of nal salary pensionsmeans many of those retiring will not have enough to enjoy their sunset years. Theywill be forced to work to make ends meet. But sustainable self-employment can offer nancial and social ful lment. Not only can working for yourself bring material rewards, it is a great way to meet people and stay in touch with people from all generations as customers, partners, suppliers, or perhaps staff.

PRIME is an initiative set up to assist older entrepreneurs across the UK. The charity seeks to help anyone aged over 50 in the UK who wants to start their own business orset up a social enterprise. Chief Executive, Laurie South, says:

There is a good reason to look at cross-generational links as research shows that cross generational companies seem to do better. To start a business you need passion for a product/service, marketing and selling skills and nancial understanding. Most people have only one of these. Taking a partner is a great way of making up for theareas in which you have no interest. That partner must not have the same skills as you imagine two passionate people who are not very good at looking after the money!Your peer group friends are likely to be like you because that is why you chose themas friends. They will not necessarily be good business partners. It is easier to nd

the complementary partners in a different age group because you will be looking for partners not friends. The key is knowing yourself and being honest about it. The next stage is matching people up. There I think there is some scope for outside help.

Call to actionThe role played by home business owning Mums and Dads who are educating thenext generation of entrepreneurs should be recognised in national enterprise policy. And efforts should be made to nd ways of connecting business owners across thegenerations so partners with complementary skills can build solid businesses together.


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Peak PrincessLissa Cook runs her business from home in the Peak District making handmadedresses for babies and little girls in Liberty prints.

I had the idea for Peak Princess last June sitting in the park with my god-daughter.I used to work in London producing news for Radio 4 and then made documentariesin Manchester but was totally burned out. The idea to do this is not such a left- eldidea as it seems as my Mum was a dress-designer and my grand-mother a milliner.

Lissa works from a sewing room at the top of the house and her husband, who is afreelance writer, works from a separate of ce.

We love working here together and often bounce ideas of each other during trips tothe village post of ce or over lunch in the garden.

Lissa had always shown an interest in sewing & knitting and would pick up skillsfrom her Mum who designed for a living.

Mum did an apprenticeship from the age of 15 and is incredibly talented. Nandidnt live close by and died when I was quite young so I didnt get the chance tolearn direct from her but as she was a milliner and her father was a bespoke shoe-maker I guess there must be something in my genes!

I really also ought to mention my in-laws. My father-in-law, Phil, is a graphicdesigner and my mother-in-law, Carol, is also artistically talented and theyve been wonderful and helped design the logos. Sophie, my sister-in-law, put me in touch with Liberty and is great source of business advice. And my husband is endlessly patient and supportive.

Lissas sales are growing as she says more people are happy to order direct online.Shes raising pro le through PR and attending fairs to build the brand. The long-term business plan is to build a strong and trusted niche brand as Lissa developsher collection, a new boys range (Peak Prince of course!) and contacts with a selectnumber of high-end boutiques. All this activity takes place with the unstinting

support of a creative and business-minded family!

www.peakprincess.co.uk


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Your People Count and Panda Loves KitschThere is not only one home business run under Cheryl Walshs roof, but two. Thats because Cheryl runs her business (Your People Count) from the spare room whilstdaughter, Katey, works on her venture (Panda loves Kitsch) from the downstairsstudy. Add to this a Dad/husband who works from home as an employed civilservant, and you soon realise this home is buzzing with activity.

My business is a training and consultancy business that offers leadership andmanagement packages. Kateys business is a clothing company that makes and sells

limited edition, handmade clothing. We both work from home and I have a spare bedroom that I use as my of ce and Katey uses part of her bedroom to design andcut fabric but uses the downstairs study to sew.

This homeworking family of three meet up at lunchtimes but prefer to go outsidethe home for business advice and mentoring. Cheryl appreciates the bene ts of being her own boss and being able to run a business that ts well with family commitments.

Both Katey and I love our independence and being able to develop our own ideas.The reason I left full time work was because I felt frustrated at not always being ableto move things forward if it didnt t in with someone elses agenda. Katey loves thefreedom of being able to create her own designs in the way she wants to work.

What a great way to work and see your family!

www.yourpeoplecount.co.ukwww.weheartpanda.com

MimimyneMum-of-two Tabitha Potts is a classic example of a successful mumpreneur. Afterhaving her two sons, Tabitha spotted a gap in the market for eco-friendly clothingand toys for children, and decided to set up Mimimyne, which has since seen her

nominated for the Mum-entrepreneur award at the Womens Business Conference.

Tabitha decided to run Mimimyne from home, which has helped her strike a better work-life balance and spend more time with her sons.

Mimimyne taps into a very niche market, so the business is still enjoying greatsuccess despite the current economic climate, something that Tabitha attributes inpart to her use of technology. Technology has helped my business to survive therecession by keeping my costs low and allowing me to work from anywhere.

Tabitha has also successfully boosted traf c and sales from the website since joiningBT Tradespace, the UKs rst social networking community for small businesses.

She said: The leads and traf c Ive received have been excellent when youresetting up your own business you need to get noticed as much as possible and withBT Tradespace I was able to do that quickly and for free.

http://mimimyne.bttradespace.com


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Theme V:


The Local Impact

Local economies are springing into life on account of home business as workers stay home during the day, avoid clogging up the roads (and polluting the environment) andspend money in local shops and on local services.

When asked what is the one thing youd like to see in your area that would help you and your home business? responses were:

Dedicated live/work developments 8%

Events & networks for home business owners 43% A unit that offers hotdesking & professional meeting space 12%Faster broadband/more wi- hotpots 37%

What this highlights is home businesses needing to connect with each other to developnew business and relationships.

Home businesses are already connecting through social media with almost three-quarters utilizing social networking sites to meet/interact with new businesses etc (it will be of little surprise that Twitter is the favoured medium, winning 59% of the vote!) but responses show an eagerness from home business owners to come together of ine.

In its work to encourage and support home businesses, Horsham District Councilhosts an annual Microbiz event. Now in its 7th year, the event in 2009 attracted 423 visitors and 44 exhibitors; the highest visitor numbers on record, con rming an appetitefrom home business owners to attend events that offer learning and networkingopportunities.It is for this reason that Enterprise Nation is launching Enterprise Nation Clubs, inpartnership with a national VA (virtual assistants) network, to offer home businessesan opportunity to get together and talk business, as well as engaging in a bit of social banter!

Many of these meet-ups will happen in home business hub facilities that are emergingacross the UK. Director of Live Work Network, Tim Dwelly, is currently carrying out anational research exercise looking at what makes for the perfect hub environment. He

says:

Home business owners need a place to come together to collaborate, socialise and share equipment. We are now seeing workhubs being set up in cities, towns and villages to meet this demand. Live Work Network has been commissioned by thegovernment to report in 2010 on the best ways to run workhub facilities that support otherwise isolated home based businesses.

Tim Dwelly, Director, Live Work Network


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We have had Local Authority, RDA and ERDF support to create hub facilities in Shropshire that offer WiFi hotspots along with meeting, training and networking facilities. Business owners appreciate a community of like minded people and occasionally relish the chance to get out of the home of ce, share ideas with others,explore new opportunities and maybe just catch up on the social chit-chat that youdont get when working on your own from home. Its vital from a business and social perspective that home business owners get together regularly and reach new marketsand Im sure well see more facilities appearing that are dedicated to this purpose.

Fay Easton, Director, Enterprise HQ, Shropshire

Call to action:Regional Development Agencies and Local Authorities to support the planning anddevelopment of hub facilities and be clear on the local approach to homeworking;ideally scrapping business rates that deter home business owners from identifyingthemselves, and are rarely levied.

Gower Cottage BrowniesBefore becoming a Mum, Kate Jenkins had a background in sales, marketing andPR. Shes putting her skills to good use in promoting her business, Gower CottageBrownies, which has taken off to such an extent that Kate is about to start building works to turn her current kitchen into a purely commercial one, kitting it out inindustrial style mixers, trolleys and racking.

The work is all being done by local Gower Builders which is just one way Kate isputting money back in to the local community. A key feature of the business is thatKate only uses free range local eggs produced on Gower and shes just employed her

rst member of staff from the village

I plan to take on more mums locally, as a mum myself I understand the exibility required and know how great we all are at multi tasking!

Kate makes regular trips to the local post of ce for banking etc and uses a local welsh courier company that delivers nationwide. Kate has been helped in return by the Welsh Assembly and explains:

Within Wales we are extremely lucky to have the Welsh Assembly funding a lotof True Taste and therefore the marketing opportunities have been excellent,I have been able to exhibit at various events in London, which would not have been affordable to me as a small producer, allowing me to increase my marketawareness.

This home based entrepreneur is now concentrating on increasing wholesale ordersand looking to supply high quality eateries and delicatessens across the rest of theUK. All this activity will come back to bene t Gower which is a village pleased tohave Kate Jenkins as resident in Gower Cottage!


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Useyourlocal.comStuart Mills is, quite simply, trying to introduce the pub world to the world wide web. Hes doing this through useyourlocal.com which started life as a unique pubparcel service.

Stuart had the idea for Useyourlocal.com whilst working at Scottish & Newcastle. Hepitched the idea to colleagues at a company Dragons Den competition and won theinvestment! This business, run from a home of ce in the quaint Northumberland village of Whalton, is now making serious waves on the pub scene.

Stuart is signing up pubs to his service which allows them to register as parcel-receivers for local residents and bene t from discount deals with partner companiessuch as promoteyourpub.com and Samsung. Stuarts vision is to leverage the web toensure the pub remains at the heart of the local community.

As consumers we receive emails from retailers offering their products or services but have you ever received an email from your local pub with details of upcomingevents, rooms to hire, or new menu specials? We are encouraging pubs to createtheir own micro-sites and connect with customers to offer information and alsouseful services such as parcel collection. With so many more people working fromhome, theres no reason why the local pub cant become the preferred business andmeeting place .. and parcel collection point!

www.useyourlocal.com


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The Top 100

Home Business Hotspots


The Top 100 Home Business Hotspots are ranked by postcode and basedon home business data from infoUK, September 2009.

This data offers a different snapshot to the national SME Statistics for the UK andRegions 2008 (Department for Business Innovation & Skills) as the Hotspots are basedon analysis of 550,000 businesses, as compared with 4.8 million for the BIS data, andthe table below lists only the top 100 home business hotspots out of a total listing of 3,235 postcode areas.

This forms part of the Enterprise Nation Index that will record ongoing and quarterly

changes to this ranking. Please contact [email protected] if you would likedetails on subscribing to the 2010 Index.

Hotspot Region/Nation1 London (central*) London2 Bristol South West3 Birmingham West Midlands4 Manchester North West5 Glasgow Scotland6 Shef eld Yorkshire & The Humber

7 Nottingham East Midlands8 Southampton South East9 Liverpool North West10 Leicester East Midlands11 Leeds Yorkshire & The Humber12 York Yorkshire & The Humber13 Northampton East Midlands14 Edinburgh Scotland15 Stoke On Trent West Midlands16 Swansea Wales17 Doncaster Yorkshire & The Humber18 Cardiff Wales19 Swindon South West20 Bournemouth South West21 Coventry West Midlands22 Plymouth South West23 Bedford East of England24 Milton Keynes South East25 Colchester East of England

26 Brighton South East27 Lincoln East Midlands28 Cheltenham South West29 Derby East Midlands


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30 Norwich East of England31 Belfast Northern Ireland32 Gloucester South West33 Newcastle Upon Tyne North East34 Wolverhampton West Midlands35 Peterborough East of England36 Chester eld East Midlands37 Luton East of England

38 Warrington North West39 Bradford Yorkshire & The Humber40 Hull Yorkshire & The Humber41 Stockport North West42 Oxford South East43 Hudders eld Yorkshire & The Humber44 Aberdeen Scotland45 Bolton North West46 Maidstone South East47 Shrewsbury West Midlands48 Preston North West49 Ilford London50 Slough South East51 Poole South West52 St. Albans East of England53 Barnsley Yorkshire & The Humber54 Romford London55 Mans eld East Midlands56 Chelmsford East of England

57 Newport Wales58 Telford West Midlands59 High Wycombe South East60 Harrogate Yorkshire & The Humber61 Walsall West Midlands62 Sutton Cold eld West Midlands63 Middlesbrough North East64 Harrow London65 Hereford West Midlands66 Rotherham Yorkshire & The Humber67 Kettering East Midlands68 Sunderland North East69 Bath South West70 Wirral North West


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71 Aylesbury South East72 Wake eld Yorkshire & The Humber73 Exeter South West74 Worthing South East75 Hemel Hempstead East of England76 Stockton On Tees North East77 Worcester West Midlands78 Reading South East

79 Blackburn North West80 Ipswich East of England81 Croydon London82 Watford East of England83 Taunton South West84 Salisbury South West85 Guildford South East86 Darlington North East87 Portsmouth South East88 Maidenhead South East89 Basingstoke South East90 Blackpool North West91 Grimsby Yorkshire & The Humber92 Wigan North West93 Oldham North West94 Solihull West Midlands95 Scarborough Yorkshire & The Humber96 Ashford South East97 Gillingham South East

98 Wellingborough East Midlands99 Ballymena Northern Ireland100 Southend On Sea East of England


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Hotspot regions/nationsRegions/nations ranked in order of the number of high home business concentrationareas located in that region/nation:

South East (16) Yorkshire & The Humber (13)North West (11)South West (11) West Midlands (11)East of England (11)

East Midlands (9) London (5)North East (5)Scotland (3) Wales (3)Northern Ireland (2)

*London Central is made up of Camden, City, Islington, Kensington & Chelsea, Lambeth, Southwark, Westminster

The London region records 5 hotspot locations but with the number of home businesseslocated in these areas being so high, this places London region as the lead region whenit comes to the number of resident home based businesses.

Disclaimer Although very extensive, the infoUK database will not contain details of every SoHoactively trading within the UK.


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Enabling Home Enterprise:


A call for action

The themes in this report, supported by the Home Business Survey data and intelligenceunderpinning it, point to an increasing number of people starting a business from homeand an ambition from existing home business owners to grow.

But is enough being done to ensure the home business sector is able to fully ourish? We think there is room for more action across two key areas:

Encourage more people to start a business from home

Support existing home businesses to grow

Encourage more people to start a business from home

Working 5 to 9Promote this as a sensible and low-risk way to start a business and ensure support isprovided between the hours of 5-9 so this growing group of part-time entrepreneurscan access the advice they need to accelerate company growth.

Tailored supportThe Home Business Survey revealed 16% of respondents who did not access any form of business support. This was also re ected in the 2009 Business Pulse Survey that showed a higher percentage of home based businesses (as opposed to out-of-home businesses) saying business support is not essential in advancing their business. We believe this is down to home business owners feeling support is notsuf ciently tailored to their needs. We call on Development Agencies, EnterpriseGroups and Business Links to offer tailored support via channels of information,events and networks.

Example case study:Information: The national Business Link network is releasing on HomeEnterprise Day a guide to starting a business from home. This is informationtailor made for the home business owner.

www.businesslink.gov.uk/homestartup


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Example case study:Events: Business Link in London hosts events that are clearly dedicated to home businesses.

We speak to and support hundreds of small business each week so were in agood place to see that the number of people starting and growing a businessfrom home is continuing to increase. Its a great way to start with low cost andlow risk. And Business Link is completely focused on helping these businessessurvive, succeed and grow. Small businesses have always been resilient during

times of economic upheaval due to their ability to adapt quickly. Nowhere is thatmore true than amongst home-based businesses.Patrick Elliott, Chief Executive, Business Link in London

www.bllondon.co.uk

Recognise and rewardPro le the achievements of home businesses in the media, and as part of Awards andother recognition programmes.

Example case study: Awards: Women Into the Network is a network in North East England for womenin business. The Network hosts annual Awards and, in 2009, introduced a new category of Best Home-based Business, North East Woman Entrepreneur of the Year Awards 2009. The winner is announced on Home Enterprise Day!

www.womenintothenetwork.co.uk

Example case study: Week-long recognition: In June 2009 NFEA, the national enterprise network,

adopted home business as its theme and encouraged all enterprise agency members to run activities during the week focused on home business.

Its not generally appreciated that most small businesses are based in theowners home. NFEA gave special attention to this sector in June 09 when ourmembers held events and promoted home business as a great way of being in business. We will continue to play our part in promoting the home as an idealstart-up location

Dawn Whiteley, Chairman, NFEA the national enterprise network

www.nfea.com


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Encourage existing businesses to grow

Research needs and requirementsIts only by making contact with home based businesses that enterprise agenciesand business support providers will truly understand local needs and requirements.Consider linking with consumer surveys that target households or conducting onlinepolls through existing start-up websites.

Example case study:Research: In August 2009 Business Link South East issued its South EastBusiness Monitor with the Hot Topic Spotlight being on home based business.The comprehensive research report found that home based SMEs have somede ning characteristics compared to their non-home based counterparts.

Home based businesses account for a signi cant minority (44%) of the regionsSME base and as such are important contributors to the economy. It is importantthat these SMEs are aware of, and are able to access the right support to helpthem survive the recession and be in a position to grow when recovery comes.

http://www.businesslink.gov.uk/SouthEast_ les/HotTopic809.pdf

Recognise new forms of company growthBy accepting that the majority of home businesses are growing by outsourcing andsub-contracting as opposed to taking on staff. Ensure this is re ected in the design anddevelopment of business support programmes and grants/incentive schemes.

Make international trade a viable optionThrough constructing online and user-friendly toolkits and a service that matcheshome businesses with international suppliers and customers. This could be achievedthrough a public/private sector consortium of groups including UK Trade and Invest,Global Entrepreneurship Week and international service companies such as BT, Regus,Lingo24.com and online sales platforms.

Provide the opportunity for home businesses to come togetherSo they can identify partnerships and collaborate on joint pitches and proposals.

Example case study:Connecting home businesses: Emily Moncuit is a seasoned connector. She runsIcon Events in Doncaster and brings together hundreds of home based businesseseach month. One of the projects to have sprung from an Icon event is an onlinetendering tool that encourages small businesses to jointly pitch for large publicsector contracts.

www.iconevents.co.uk


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Develop the infrastructureBy supporting the development of hub facilities and clarifying the Local Authority position on homeworking and business rates.

Example case study :Local Authority position: The London Borough of Richmond upon Thames istaking a keen interest in home business. Since the recession hit, the Councilhas seen an increase in the number of local residents heading home to start a business. The Councils Home Based / Self Employed Scrutiny Task Group hascarried out research and expects to clarify its supportive stance towards home business in early 2010. This will happen through announcements on the Council website.

www.richmond.gov.uk

Enterprise Nation will continue to play its part in supporting the sector through beingthe UKs leading home business resource and providing:

daily content for home business ownerstools in the form of books/online services and Clubs to bring people together

advice to corporates on product messaging and design consultancy services to Regional Development Agencies and public sector groups wanting to engage with their local home business base

We look forward to another bright year ahead for home business, and progress on theactions suggested above.


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Appendix I:


Results from 2009 Home Business Survey

Do you run your business full time from homhours per week)

e? (> 30

Answer Options ResponsePercent

Yes 58.4%No 41.6%

58%

42%

Yes No

Are you male or female?


Male 28.8%Female 71.3%

29%

71%

Male Female

Please indicate your age band


Under 25 3.8%26-35 22.1%36-44 31.7%45-59 36.3%60-69 5.0%70 and over 1.3%

4%

22%

32%

36%

5% 1%

Under 25 26-35 36-44 45-59 60-6970 and over

When did you start this business?


This year (2009) 31.5%Last year (2008) 16.4%Three to five years ago (2005-2007) 31.1%Six to ten years ago (1999-2006) 15.5%More than ten years ago (before 1999) 5.5%

31%

16%

31%

16%

5%

This year (2009)Last year (2008)Three to five years ago (2005-2007)Six to ten years ago (1999-2006)More than ten years ago (before 1999)


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Has this business always been home-based?


Yes 93.7%No used to have separate business premises 6.3%

94%

6%

Yes No used to have separate business premises

Why did you start from home?


Lower start-up costs 57.3%To be close to my family 33.2% Availability of technology 21.6%Better work-life balance 52.2%No need for an office 53.9%Reduce my carbon footprint 12.5%

25%

14%

9%

23%

23%

5%

L ow er st ar t- up cos ts To be cl os e t o m y f am il y Availability of technology Better work-life balanceNo need for an office Reduce my carbon foo tprint

Is this business your only source of income?


Yes 62.3%No 37.7%

62%

38%

Yes No

If NO, what other sources of income do you hthat apply)?

ave (tick all


Part-time employment 26.9%Full-time employment 33.3%Investment income 9.7%Other business(s) 18.3%Pension 11.8%Other 15.1%

23%

29%8%

16%

10%

13%

Part-time employment Full-time employmentInvestment income Other business(s)Pension Other


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Does anyone else living in this house also ow home-based business?

and run a

Answer Options ResponsePercent Yes 18.2%

No 81.8%

18%

82%

Yes No

If yes who (tick all that apply)


Husband/wife/partner 91.1% Adult children 2.2%Other adult relatives 2.2%Other adult(s) unrelated 4.4%Teenage children 2.2%

89%

2%2%

4% 2%

Husband/wife/partner Adul t chi ldrenOther adul t relat ives Other adul t( s) unre la tedTeenage children

In total, and including your own business, ho businesses are run from this house?

w many

Number of businesses ResponsePercent

1 72.82 23.73 2.74 0.45 0.06 0.4

0

20

40

60

80

12

34

56

Number of businesses

Where did you go for start-up advice?


Friends/family 10.0% A professional (bank/accountant) 3.8% A government body (Business Link) 25.1%Online 27.6%

Business organisation 11.3%Dont go anywhere for advice 15.9%Other 6.3%

10%

4%

25%

28%

11%

16%

6%

Friends/family A professional (bank/accountant) A government body (Business Link)OnlineBusiness organisationDont go anywhere for adviceOther


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Did you need to raise funding to get you up a d running?


Yes 30.5%No 69.5%

31%

69%

Yes No

If yes, where did the money come from?


Friends/family 20.2%Personal savings 75.0%The bank 9.5%The mortgage 4.8%Credit card 11.9%Private investors 4.8%Government or advisory service 4.8%

Grant 10.7%Other 8.3%

13%

50%

6%

3%

8%

3%3%

7%6%

Friends/family Personal savingsThe bank The mortgageCredit card Private investorsGovernment or advisory service GrantOther

What is the single thing you most enjoy abouown boss?

being your


Freedom to make my own decisions 48.7%Financial stability 1.7%Learning new skills/pushing myself 17.9%Better Work/life balance 31.6%

49%

2%

18%

32%

Freedom to make my own decisionsFinancial stabilityLearning new skills/pushing myselfBetter Work/life balance

Do you anticipate increasing turnover next y ar (2010)?


Yes 89.1%No 10.9%

89%

11%

Yes No


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If Yes, will this planned growth require you tnew employees?

take on


Yes full time employees 3.7% Yes part-time employees 9.3%No will use freelancers or will outsource 44.7%No greater efficiency of existing resources 42.3%

4%9%

45%

42%

Yes full time employeesYes part-time employeesNo will use freelancers or will outsourceNo greater efficiency of existing resources

Approximately how many customers do you ave?


Less than 5 22.4%5-10 21.9%11-50 25.3%51-100 6.8%Over 100 23.6%

22%

22%

25%

7%

24%

Less than 5 5-10 11-50 51-100 Over 100

Approximately what proportion of your revefrom foreign sales?

ue come


Nil 66.8%Under 5% 20.2%6-24% 8.4%25-49% 2.5%

50-99% 1.7%100% 0.4%

Nil Under 5% 6-24% 25-49%50-99% 100%

If yes, which part of the house is your home o ffice?


Spare room 48.2%Bedroom 8.6%

The kitchen table 3.6%Living room 11.2%Garden shed/garage 7.6%Other 20.8%

48%

9%4%

11%

8%

21%

Spare room Bedroom The kitchen tableLi ving room Garden shed/garage Other


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What do you do with the time you save comm uting?


Spend more time on the business 63.5%Personal development 17.2%Exercise 19.3%Get involved in family activities 28.8%

More involved in community 8.6%Relaxation 16.7%Travel 3.0%

40%

11%12%

18%

5%

11%2%

Spend more time on the businessPersonal developmentExerciseGet involved in family activitiesMore involved in communityRelaxationTravel

How important has technology been as a factenabling you to run a business from home?

r in


Its critical to the success of my business 81.4%

Very important11.8%

Important 5.9%Not important 0.4%My business does not use technology 0.4%

Its critical to the success of my business Very importantImportant Not importantMy business does not use technology

What do you use your IT Solution at home fo ?


Purely for business 9.7%For both home/family and business 90.3%

10%

90%

Purely for

Documents

Home Business Report 2009