A recent study* by AXA Business Insurance and Enterprise Nation has revealed that people starting businesses from home are the new force in today’s economy.
The quiet revolution
It might surprise you to learn that one in every ten homes in the UK houses a business, with over 70% of new businesses in the UK now starting up at home.
And yet, homeworking is still considered a bit of a new fad in the post-industrial age (even though homeworkers – weavers, blacksmiths and writers – have been around since the beginning of time).
You can speculate about the reasons behind this ‘quiet revolution’: the wider economic recovery? Better communications and digital technologies? People increasingly aspiring to a ‘local’ way of life? All we know is that one thing is for sure, the home-based business revolution is well underway.
Who are the ‘homepreneurs’?
Homepreuneurs are pioneers. More than two thirds of home-based businesses started up in the last five years – with more than a third starting up in the last 18 months.
Your average homepreneur (the latest Americanism to enter our language) is most likely to be female and aged between 45 and 59 years old.
They prefer ‘deconstructed organisation’
Many of the home businesses we spoke to prefer a little ‘creative chaos’, with 37% admitting to having a ‘very messy’ workplace and almost 50% saying that their working environment is far from peaceful or quiet.
But not ever business houses a messy maven; 24% of respondents told us they have a very tidy workspace!
These businesses, working tirelessly behind closed curtains on streets across the UK, are thriving. The overwhelming majority (79%) of home businesses we spoke to say they expect their turnover to increase in 2014. Meanwhile, 35% of them are doing so well that they are outsourcing contracts to freelancers, and a further 12% plan to take on new employees.
The banks aren’t partisans
Interestingly, many of these businesses haven’t relied on banks to help start up their business. Over a third said that they didn’t need any initial funding at all, and when they did, they were most likely to use their savings or rely on a part-time job.
While things might seem easier in the beginning, things get trickier later on. A third of home businesses told us that the biggest barrier to growing their business in 2014 will be finding additional finance. There may also be a lack of awareness among business owners about alternative funding schemes.
About AXA Business Insurance
AXA Business Insurance specialises in protecting and supporting businesses of all shapes and sizes – including home-based business. We understand that surviving and thriving through the years takes a lot. That’s why we’re committed to providing tailored policies, as well as free information and guidance on Business Guardian Angel.
* Based on research among nearly 800 home-based businesses.