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August 22, 2014

Home-based businesses to create 400,000 jobs

Home-based businesses to create 400,000 jobsSome 400,000 home businesses are looking to take on an employee for the first time, according to new research by Direct Line for Business.

The UK small business sector as a whole is expected to create 1.9 million new jobs in 2014. Small and micro businesses are planning to pay new staff on average £14,405 a year while self-employed businesses will start new staff on £10,795 a year.

The research has found that new employees joining small and micro businesses this year will work on average 28 hours a week. Those looking to hire their first employee will expect the role to require an average of 21 hours a week.

Jasvinder Gakhal, head of Direct Line for Business, said: “Small businesses are the lifeblood of our economy, employing millions of people, and our research shows that they are set to contribute significantly this year. With positive signs of economic growth, many businesses will want to take advantage by expanding – often by increasing headcount.”

This week, the government has announced a new package of measures to support home-based entrepreneurs. The measures include legislation to make it easier for people to run a business from a rented home. The government will also publish updated guidance to make it clear that planning permission should not normally be needed to run a business from home. In addition, new business rates guidance clarifies that in the majority of circumstances, home-based businesses will not attract business rates.

Matthew Hancock, business minister, announced the package at the Home Business Summit, organised by Enterprise Nation. He said: “We know that starting up any business can be hugely stressful. We’ll give people the confidence they need to run a business from a rented home, making sure that the majority of home businesses are exempt from business rates and our aspiring entrepreneurs have the information they need to start up and grow.”

Emma Jones, founder of Enterprise Nation, said: “The home is now the most popular place to start and grow a business. One in ten domestic properties are now home to at least one business and they already contribute £300 billion to the British economy.”

Jones says home-based entrepreneurs 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.”

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