- government announces new package to support home-based entrepreneurs
- 2.9 million home-based businesses in the UK contribute £300 billion to the economy
- Enterprise Nation to undertake in-depth research into Britain’s booming home businesses.
Around 70% of new businesses start off in the home, and they contribute £300 billion to the economy. As part of its long-term economic plan to back businesses, the government wants to make it much easier for people thinking of starting a home business to do so with the law firmly on their side.
Source: BIS
The new measures announced include:
- new legislation will make it easier for people to run a business from a rented home. The law will be changed so that landlords can be assured that agreeing to this will not undermine their residential tenancy agreement. A new model tenancy agreement will also be made available shortly
- updated planning guidance makes it clear that planning permission should not normally be needed to run a business from your home
- new business rates guidance clarifies that in the majority of circumstances home based businesses will not attract business rates
The Business Minister Matthew Hancock announced the package at the first ever Home Business Summit, organised by the small business network Enterprise Nation, at the Enterprise Wing of Somerset House in London today (15 August 2014).
Business Minister Matthew Hancock said:
Emma Jones MBE, founder of Enterprise Nation said:
“The home is now the most popular place to start and grow a business. One in 10 domestic properties are now home to at least 1 business and they already contribute £300 billion to the British economy.
“These are not people starting businesses out of necessity through lack of jobs, they are part of a growing movement that is responding to the new opportunities technology brings and actively taking control of their own destiny by starting out from home.
“They are hard-working people who now have the capability to trade globally from their own kitchen table. They are growing through outsourcing work to other home-based individuals and as they do so, they are bringing important employment opportunities to rural as well as urban areas of Britain.”
Liz Peace Chief Executive of the British Property Federation said:
“Enterprise Nation is also today launching a new in-depth study to shine a light on the motivations and ambitions of entrepreneurs running home businesses. The results will be published later this year.
- There are already 2.9 million businesses being run from entrepreneurs’ homes (BIS Business Population Estimates and BIS Small Business Survey).
- Home based businesses contribute £300 billion in annual turnover to the UK economy (BIS Business Population Estimates and BIS Small Business Survey).
- If 1 in 10 home businesses took on just 1 extra employee it would create 300,000 jobs (BIS Business Population Estimates and BIS Small Business Survey).
- The updated planning and business rates guidance will be available on www.gov.uk/bis.