By Daniel Hunter
A poll of homeworkers for Asda indicates that whilst economic conditions may be challenging, the value to the UK economy of home and garden-based businesses will top £8 billion this year, up from just over £6 billion in the same poll in 2010, a rise of more than 25% in two years.
As many as 100,000 businesses are thought to be based at home, according to a leading authority on homeworking, shedworking.co.uk. The Asda poll of home-based business owners found that the average turnover of home-based businesses has risen by 25% in the last two years.
Reflecting this growth, sales of sheds and low-cost office technology and stationery for potential home use have boomed at Asda in the last twelve months, with shed sales up 386%, laptop sales up 86%, printer sales up 45% and stationery sales up 12%.
Nearly four in five (77.8%) of those polled said the lower cost of equipment to run a business were amongst their main reasons for choosing to start a business from home.
“Many households are taking a go-it-alone approach to business and are reaping the rewards,” said Dan Carroll, Asda’s homeworking specialist. “The low cost of starting up a business means that many households are pursuing the entrepreneurial dream. With the value of the back garden economy reaching an amazing £8 billion, home-based businesses are now lending a whole new meaning to the term ‘home economics’”.
Sixteen percent of those polled said that their turnover had been in the £100-150,000 range in the last twelve months and 7.9% said that their turnover had exceeded £200,000.
Nearly a quarter of home-based businesses polled in the Asda survey employ more that one person and one in twenty employs more than five. Four in five (78.9%) expect to work from home indefinitely.
Many of the home businesses polled were bullish about the prospects for growth this year, with 13.5% of those polled expecting turnover growth of 20% or more. Only five percent of respondents expected no growth or a decline in sales this year. More than a third (35.1%) expected growth of between five and ten percent this year.
Lower costs, easier childcare and a sense of it being a more modern way of working were among the main reasons cited for working from home.
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