the heart of home business britain
Transcription
the heart of home business britain
INSPIRED BY THE HEART OF HOME BUSINESS BRITAIN EXPLORING THE UK’S HOME BUSINESS ECONOMY HOME BUSINESS 100 03 EXECUTIVE SUMMARY CONTENTS 03 EXECUTIVE SUMMARY 04 FOREWORD 08 CHAPTER 1 THE BIG PICTURE 12 EXPERT VIEW: MIKE CHERRY, FEDERATION OF SMALL BUSINESSES 14 CHAPTER 2 THE HOTSPOTS 22 CHAPTER 3 THE EXPERIENCE 26 EXPERT VIEW: PAUL LINDLEY, ELLA’S KITCHEN 29 ABOUT VONAGE & HOME BUSINESS 100 30 MEET THE HOME BUSINESS 100 This report maps the UK’s home business population, exploring the size and economic contribution of home businesses, their demographic and regional distribution, and the motivations of the people who set up and run companies from home. Key findings include: MOST UK BUSINESSES ARE HOME BUSINESSES There are over 2.75 million home businesses in the UK today, over 52% of the UK’s total business population and a 23% increase over the past decade. Approximately one in 11 UK workers is running a home business and the sector supports an estimated 3.3 million jobs. HOME BUSINESSES ARE A MAJOR ECONOMIC CONTRIBUTOR Home businesses are contributing an estimated £94bn gross value added, 5.6% of the country’s total. The total annual revenue of home businesses is projected to be £212bn in 2016. HOME BUSINESSES ARE UNLOCKING THE POTENTIAL OF KEY DEMOGRAPHICS According to the survey that supports this report, a majority of home businesses are run by over-55s, and a third by women (compared to 22% of all small businesses). Home businesses have a key role in both unlocking the potential of the UK’s ageing workforce and in improving the representation of women-owned businesses. HOME BUSINESSES THRIVE WHERE THE ECONOMY NEEDS THEM MOST As a share of the total business population, home businesses are most strongly represented in regions where overall growth is below the UK average. Wales and the North East are the only two areas where over 60% of all businesses are home-based; they have also been two of the three slowest growing areas in the UK over the last decade. TECHNOLOGY IS ENABLING HOME BUSINESS SUCCESS Improved access to technology is lowering the barriers to home business creation, with more home businesses operating in the IT & Telecoms sector than any other. HOME BUSINESSES NEED MORE COMPREHENSIVE SUPPORT Home businesses identify isolation and a lack of support as among the main challenges they face; more comprehensive mentoring and business support provision could further unlock the potential of the home business sector. 04 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 05 FOREWORD SIMON BURCKHARDT MANAGING DIRECTOR, VONAGE UK In recent years, we have witnessed a huge shift in the UK economy, towards entrepreneurship and business ownership as an emerging norm. The UK has never had a bigger business population and small businesses are driving growth and opportunity right across the economy. What’s more, many of the million-plus new businesses created since the 2008 recession are being run from people’s homes. Home-based businesses can no longer be seen as a marginal sector of the economy; today, as this report shows, they make up a majority of the total business population. Over two and three quarter million people are running a home business in the UK, contributing an annual £94bn in GVA to the economy. These businesses are an essential and under-appreciated foundation of our modern economy. Right across the country and in a broad range of sectors, home businesses are creating value, supporting employment and giving people the flexibility to make a living on their own terms. Home businesses contribute £94bn annually to the UK economy At Vonage, we are committed to supporting and enabling the success of the nation’s businesses, from home-based sole traders to multi-location enterprises. Many of our customers are home businesses, and as a former small business owner myself, I understand the day-to-day challenges and realities of making it work as an emerging enterprise. We also understand that major changes in business communications are powering the shift in the UK’s workforce towards home business ownership. “Where” or “how” someone chooses to work (desk phone, soft phone, mobile phone, tablet) is irrelevant. Cloud communications offers the flexibility and mobility to maintain a business presence anytime, anywhere, from any device. Cloud communications providers like Vonage offer small business owners solutions that enable them to work from a home office and benefit from leading edge services that help them do business better. To reflect our commitment to supporting UK businesses, we have created and brought together the Home Business 100, a new community inspired by Vonage to spotlight the stories, successes and experiences of home business owners. Many of their stories are reflected in this report, which — supported by research from Cebr — explores the UK’s home business economy to reveal its breadth, depth and character. Major changes in business communications are underpinning the home business trend What we have found is that home businesses are not just hugely significant as an aggregate economic contributor, but in the areas and demographics whose potential they help unlock. The research outlined in this report shows how home businesses are helping underpin growth in areas where the business population is below average. It suggests that a high proportion of the nation’s home business owners are near or past retirement age, and that the sector may have an important role to play in tapping the skills and experience of the ageing workforce. Our conversations with Home Business 100 members show that many are attracted by the flexibility that home business ownership offers, but also in search of greater support, advice and mentoring for what can be an isolating way of working. The picture this reports paints is of a community of businesses with a wide imprint across the UK economy, and a diverse representation across regions, sectors and demographics. Home businesses are thriving and with improved support this already vibrant sector can grow still further. We hope that this report reinforces just how prevalent and important home businesses are, and shows anyone who might be considering starting up themselves that they would be in good company. 06 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 07 HOME BUSINESS BRITAIN IN NUMBERS WHICH IS A THERE ARE 2.75 MILLION HOME BUSINESSES IN THE UK TODAY 52.5% 23% INCREASE OF UK BUSINESSES ARE HOME BUSINESSES OVER THE LAST DECADE 52% IT AND TELECOMS IS THE MOST COMMON HOME BUSINESS SECTOR 62% 67% OF HOME BUSINESS OWNERS HOLD A UNIVERSITY DEGREE OF HOME BUSINESSES ARE RUN BY MEN 33% 3.3mn ARE RUN BY WOMEN JOBS SUPPORTED BY THE HOME BUSINESS SECTOR ARE OWNED BY OVER-55s £212bn ESTIMATED TOTAL ANNUAL REVENUE OF UK HOME BUSINESSES ONE IN 11 WORKERS IN THE UK IS RUNNING A HOME BUSINESS 11.5% 65% OF HOME BUSINESS OWNERS EMPLOY AT LEAST ONE STAFF MEMBER OF ALL BUSINESSES IN THE NORTH EAST ARE HOME BUSINESSES THE AVERAGE ANNUAL REVENUE FOR A HOME BUSINESS IS: £77,000 Figures based on Cebr analysis and a YouGov survey of 532 UK home businesses 08 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 09 CHAPTER ONE HOME BUSINESS BRITAIN THE BIG PICTURE Business ownership has never been more popular or prevalent across the UK. Government figures show that, as of the beginning of 2015, there were a record 5.4 million companies operating.1 Hundreds of thousands of new companies are now registered every year, and the business population has boomed by an estimated 1.9 million since the turn of the century.2 At the heart of that trend has been the rise of the home business. As the technology to start and run a business has become increasingly accessible and affordable, an evergrowing number of people are choosing to make their own way as business owners. Most of them are choosing to do so from the comfort of their own home. Research conducted for this report shows that there are now over 2.75 million home businesses operating across the UK, a 23% increase over the last decade. Home businesses account for over half of the UK’s total enterprise stock. They are a sizeable and significant component of the UK’s changing economy, as career patterns change, the workforce ages and self-employment becomes mainstream. They play an essential and sometimes unsung role in delivering value and unlocking potential across the economy. The home business population has grown by 23% since 2006 The millions of people who are running companies from the kitchen table, the garage and the spare bedroom are an increasingly important part of the UK’s present and future economy. As home businesses proliferate, they deserve to be more clearly defined and better understood. Since the 2008 recession, and the upsurge of business creation that followed, there has been much focus on the rise of start-ups and small businesses in the UK. Britain’s entrepreneurial culture, and increasing supply of fast-growth young companies, has rightly been hailed as a major net contributor to the nation’s above-average growth rates. The home business population has been on the rise for well over a decade, with the overall number having risen in every year since 2001. In those 15 years, over 900,000 home businesses have been created, a net increase of 49% (Figure 1, overleaf). Home businesses have been responsible for 45% of net business creation since 2000 The growth of the home business sector has been part of the wider enterprise upsurge; they are responsible for an estimated 45% of total net business creation since 2000, which Government figures estimate at 1.9 million.3 Moreover, home businesses are growing not just as a whole, but as a share of the total UK workforce. An estimated one in every 11 workers is running a home business, with the sector having grown at above the rate of overall employment over the last two decades. Home businesses have proliferated for many of the same reasons as the wider small business population: the economic upheaval that resulted from the financial crisis of 2008; the falling costs and rising availability of the technology needed to start and run an enterprise; and a combination of Government support and the increasing profile of entrepreneurship as a career choice. Home businesses are an important and distinctive part of that story, one that needs to be better told. What is home business Britain today, who is powering it and why does it matter? Those are questions this report will seek to answer, building a clearer picture of the UK home business population and the unique role it plays in a fast-changing economic landscape. 2.75 MILLION: NUMBER OF H BUSINESSES INOME THE UK TODAY P08 HOME BUSINESS 100 HOME BUSINESSES: A GROWTH STORY HOME BUSINESSES R ACCOUNT FOR OVEAL HALF THE UK’S TOTTION BUSINESS POPULA Lisa and Ian McCartney, PLYT 10 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 11 CASE STUDY HOME BUSINESS SUCCESS STORY LUCY WOODHOUSE & MERIEL KEHOE, CLAUDI & FIN 2,716,400 2,750,800 2016 2,320,800 2011 2015 2,288,800 2010 2,436,300 2,275,200 2009 2013 2,250,100 2008 2,425,300 2,239,100 2007 2012 2,242,700 2006 1,000,000 2,161,200 1,500,000 2,115,000 Home businesses, therefore, play a fundamental part in creating jobs and economic value, one comparable with some of the most important sectors of the overall economy. Chapter 2 will explore the role of home businesses further, looking at the regions, sectors and demographics in which home businesses are predominant, and revealing their importance to key areas of the economy. 2,042,700 2,000,000 1,911,900 Home businesses support an estimated 3.3 million jobs 1,841,600 2,500,000 2,668,400 3,000,000 500,000 2014 2005 2004 2003 2002 0 2001 Moreover, home businesses may be unlocking the potential of those who might otherwise be out of work. Almost 24% of home business owners surveyed for this report said they believed they would be unemployed if they did not have their business; extrapolated to the whole sector, that suggests home businesses are supporting hundreds of thousand of jobs that might not otherwise exist. Stocked in major retailers and with new products on the way, Lucy is feeling optimistic about the future. “Believe in your product,” Lucy advises, “Parts of the journey will be unexpected, some challenging and maybe even scary – but if you have that belief then you will convince others, you will succeed and you will love it.” FIGURE 1 – NUMBER OF UK HOME BUSINESSES, BY YEAR 1,893,800 Since 2008, the home business population has grown by over half a million, an increase of 22%. As the UK economy increasingly becomes one defined by business ownership, people running companies from home have played a central part in driving that trend. Home businesses are also, while mostly without staff, playing a significant role in supporting UK employment. With just over 11% employing one or more people, the sector is responsible for an estimated 3.3 million jobs. By this measure, more people are working in the home business sector than in the UK manufacturing industry (2.6 million)8, construction (2.1 million)9 or financial services (1.1 million).10 2000 Into this improving climate for business creation, came a huge pool of people displaced by the effects of the financial crash. According to Aston Business School’s Enterprise Research Centre, 13 million jobs were lost from the private sector between 2008 and 2014, from businesses that either folded or cut staff numbers. In the same time period, 13.4 million jobs were created, with almost 30% the result of new businesses being started.5 The estimated economic contribution of home businesses, based on Gross Value Added (GVA, which measures the value of goods and services produced by individual sectors and areas of the economy), is £94bn, or 5.6% of the country’s total. On this basis, home businesses are making an economic contribution in line with some of the UK’s most significant industry sectors: more than the creative industries, and three quarters that of financial and insurance services (which had GVA of £84bn6 and £124.4bn7 in 2014 respectively). Lucy and Meriel started out testing recipes in their own kitchens. Launching the business at home gave them extra time and the flexibility to look after their children and chief taste testers, Claudia and Fin. It also eased the financial pressure, particularly vital in the early days: “We had every belief that Claudi & Fin would work but we didn’t want to put any more pressure on ourselves than we needed to,” she says. It was only when the business got bigger – two years after it was started – that Claudi & Fin felt the impetus to move out of home and into an office. It was a trip to New York that started Lucy Woodhouse and Meriel Kehoe on the journey to frozen yogurt success. “When I got back from the U.S., I stood in a supermarket aisle and wondered why there were no frozen yogurt options and that’s where the idea came from — wanting to create something new, something different,” Lucy says. That was in 2012. Four years later, Claudi & Fin Greek-style frozen yogurt lollies are available across the UK in more than 1200 stores, with more than 1.25 million lollies sold to date. 1,876,100 A new company can be registered in 24 hours and at a cost of £12 As home businesses grow in number, their role in driving value and employment across the UK economy only grows. Cebr research for this report shows that the average annual revenue for a UK home business is £77,000, and the sector as a whole generates annual revenue of £212 billion. 1999 From a cost and ease perspective, it has never been cheaper or simpler to start up a business. A new company can be registered in 24 hours and at a cost of £12. The cost of a broadband connection has also been falling at pace, with Ofcom showing that the average monthly spend on residential broadband fell by 71% between 2000 and 2012.4 The growth of platforms from Amazon to eBay and Gumtree has created channels for people to easily reach customers. In parallel with improved availability of technology has come better access to information and advice. HOME BUSINESSES: WHY THEY MATTER Inspired by a trip to New York, frozen yoghurt manufacturer Claudi & Fin has now topped a million sales 1,918,900 OF THE COMPA CREATED IN T NIES SINCE 2000 HHE UK HOME BUSINE AVE BEEN SSES 1998 42% Source: Survey of over 500 home businesses, Cebr analysis 12 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 13 EXPERT VIEW UNLOCKING THE POTENTIAL OF HOME BUSINESS BRITAIN MIKE CHERRY NATIONAL CHAIRMAN, FEDERATION OF SMALL BUSINESSES At the heart of the UK’s record-breaking business population, more and more people are choosing to start and run a business from home. It is not hard to see why the home business sector is on the rise: it has never been easier to start a business nor, with the rise of digital platforms and technology, to find and reach customers. Moreover, with the costs saved on commuting, office rental and business rates, running a business from home makes financial sense for an increasing number of people looking to maximise their skills as a sole trader or small business owner. Home-based businesses are a major economic contributor for the UK and they are an employment creator, including for those who benefit from the extra flexibility of working from home. The proportion of women-led businesses is higher amongst home-based businesses than the small business population as a whole, helping unlock some of the significant untapped potential that exists for a higher level of female entrepreneurship. Home businesses matter and their importance will only grow over time as numbers increase. Yet barriers to their success remain and there is more than can be done to support home-based businesses, building on the positive moves Government has already made. In recent years, we have seen updated guidance that makes it easier for people to run a business from a rented home, and clarification that home businesses should generally not be subject to planning permission or business rates. Now we believe there are three areas in which Government can go further in supporting home-based businesses. The first relates to improving digital connectivity, so important to the success of all businesses in today’s market. Government promises that have been made, including for fibre-optic broadband to be installed as standard in new housing developments, and a Universal Service Obligation giving people the right to request a decent and affordable broadband connection, now need to be followed through. There is also work to do on awareness, with FSB research from 2015 finding that only 36% of small businesses were aware of the availability of superfast broadband in their area. Tax simplification is the second area in which home-based businesses can be better supported. FSB has already been working with Government to stop plans that would have moved many home-based businesses with modest turnovers onto mandatory quarterly tax reporting, and there is more to do to design a tax system that works for the self-employed. In particular, those running home businesses as self-employed sole traders face unlimited liability, with personal assets, including their home, at risk. Reducing some of this liability should be a priority as part of a tax system that supports small business. There are areas in which Government can go further to support home-based businesses Finally, consideration needs to be given to the wider business support environment for home-based businesses. For people running a business from home, access to support networks, mentoring and advice can be one of the most important things. Shared workspaces are an important part of this, yet are currently heavily concentrated in areas such as London, Manchester and Brighton. Government could intervene by cutting business rates that form a significant part of the operating costs of many of these spaces, thereby encouraging their proliferation across all the regions of the UK. In summary, home-based businesses play a significant and growing role in the UK’s thriving small business community. Now there is more that needs to be done to support them, to unlock the full potential of home-based businesses for the economy as a whole. Mike Cherry is National Chairman of the Federation of Small Businesses (FSB) 14 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 15 CHAPTER TWO MAPPING BRITAIN’S HOME BUSINESSES HOME BUSINESS BRITAIN THE HOTSPOTS The UK’s home businesses are not just significant economic contributors; in their profile and distribution, they also signify important trends within the UK economy and labour market. This second chapter will delve deeper into the landscape of home business Britain to explore the regional spread, age profile and sectoral distribution of the nation’s home business owners, and examine what the nature of the group might tell us about the present and future of the economy as a whole. Taking the business population as a whole, there is a clear regional disparity in the volume and density of business ownership, with London, the South East and South West seeing the highest number of businesses per 10,000 adults, and the North East, Scotland, Wales and Northern Ireland the lowest. Based on the 2015 figures, London’s 976,000 companies give it an 18% share of the overall business population, compared to the North East’s 2.5%.11 In the home business sector, London is no longer the predominant area; the South East is home to the highest number of home businesses, with nearly half a million and 24% more than the capital. While the South West, where one in every nine people in employment is running a home business, is the area most reliant on the sector. In the South-West, one in nine people in employment is running a home business Moreover, while home businesses make up at least half of the total business population in every other region, in London they are only 38% (compared to a national average of 52%). By contrast, in the area of lowest overall business density, the North East of England, home businesses make up the lion’s share of the local business population. An estimated 88,400 operate in the North East, 65% of all businesses. In Wales, another area with below-average business density, home businesses also make up over 60% of the total. The West Midlands, which has England’s second-lowest business density overall, also sees above-average home business representation of 55%. While the trend is not absolute (the South West and the East of England have above average business density and home business market share), there is a striking correlation between areas with high home business density and low overall growth. The North East and Wales are the only two areas where home businesses account for over 60% of the local business population; they are also, judged by regional economic output, two of the three slowest growing areas in the UK over the last decade (with GVA growth in that time of 2.3% and 4.1% respectively, compared to 27.5% in London and 15.8% in the South East). Home businesses, therefore, may be seen to have an important part to play in supporting private-sector growth in areas where the business population underperforms as a whole. And while the home business community broadly equates to the UK private sector as a whole, with the four southernmost regions seeing the highest volume of activity, these figures suggest that home businesses are fulfilling an unsung role in parts of the economy where the private sector is less strong. For instance, in the North East, where the local proportion of home businesses is highest, the unemployment rate is also the worst in the UK, at 7.4% compared to the national average of 4.9%.12 Home businesses are, as such, helping support employment and underpin growth in regions that need economic dynamism most. They are also playing an important role in sectors that are central to the future growth of the UK economy. Research conducted for this report shows that there are more home businesses in the IT & Telecoms sector than any other. With the UK technology sector growing at an estimated 32% quicker than the economy as a whole, home businesses are well represented in one of the most high-potential fields of the economy as a whole.13 65% OF ALL BUSIN THE NORTH EAESSES IN HOME BUSINE ST ARE SSES Gaynor Hebden-Smith, Scottish Sea Glass 16 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 17 MAPPING HOME BUSINESS BRITAIN NO. OF HOME BUSINESSES FIGURES ON MAP SHOW AVERAGE ANNUAL REVENUE OF A HOME BUSINESS BY REGION NORTH EAST £63,700 NO. OF HOME BUSINESSES SCOTLAND SHARE OF ALL BUSINESSES NORTH WEST YORKSHIRE & THE HUMBER £2.4bn 52% £6.8bn 197,700 £68,800 £9.5bn EAST MIDLANDS 54% 193,000 264,400 WEST MIDLANDS 65% 88,400 £6.1bn 50% GVA* CONTRIBUTION GVA* CONTRIBUTION 54% 184,800 SHARE OF ALL BUSINESSES EAST OF ENGLAND 55% £6.3bn 310,400 59% £9.4bn LONDON 369,500 38% £17.4bn SOUTH EAST 488,500 56% £15.7bn £7.1bn 219,700 63,900 62,500 WALES 47,900 62% 131,000 £3.8bn 88,500 SOUTH WEST 57% £9.5bn 97,200 303,300 *GVA measures the value of goods and services produced by individual sectors and areas of the economy Source: Survey of over 500 home businesses, Cebr analysis, 2016 18 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 19 FIGURE 2 – SECTOR DISTRIBUTION OF HOME BUSINESSES UNDERSTANDING HOME BUSINESS OWNERS 24,757 52,266 57,767 93,528 TRANSPORTATION & DISTRIBUTION MEDICAL & HEALTH SERVICES REAL ESTATE LEGAL 99,030 145,794 159,548 165,050 EDUCATION MANUFACTURING FINANCIAL SERVICES ACCOUNTANCY 269,581 283,335 310,844 324,598 As this research shows, there are over 2.75 million people across the UK running a home business. But who are the people at the heart of home business Britain? And why are they choosing to make their livelihood in this way? The survey on which this research is based looked both at the demographic profile of home business owners and the question of whether home business ownership is a necessity (as some have claimed of the UK’s rising self-employment) or a choice. The survey suggested that a majority of home business owners in the UK (52%) are aged 55 or over, with over three quarters (79.1%) aged 45 or over. Only 8.3% were found to be under-35. The apparent prevalence of older home business owners would fit with the wider trend of over-50s turning to entrepreneurship and self-employment. The 2014 Global Entrepreneurship Monitor found a marked increase in the entrepreneurial activity of this age group,14 while the Bank of England has suggested that the ageing workforce was responsible for around half the increase in self-employment in the UK between 2004 and 2014.15 A report from The Future Laboratory has further suggested that there will be 2 million ‘boomerpreneurs’ — business owners over the age of 50 — by 2020.16 CONSTRUCTION MEDIA, MARKETING, ADVERTISING, PR & SALES 35 RETAIL 8.3% AGED 330,100 35-44 12.6% 434,631 AGED 12% OF HOME BUSINESSES ARE IN THE IT & TELECOMS SECTOR As well as helping unlock the economic potential of the UK’s ageing workforce, home businesses are also important in addressing the gender imbalance that exists within the business population. House of Commons figures show that, in 2015, only 20% of SMEs were run by women.17 By contrast, this survey suggests that a third of home business owners are women. FIGURE 3 – AGE DISTRIBUTION OF HOME BUSINESS OWNERS UNDER HOSPITALITY & LEISURE As the UK workforce ages (the ONS expects a third of workers to be over 50 by 2020), and the economy risks losing accumulated skill faster than it can be replaced, home business could provide an outlet for helping people stay economically active for longer. Only 30% of over-55s surveyed for this report said they would otherwise expect to be in full or part-time work if they were not running a home business; another 30% thought they would be running the same business outside the home. Home business ownership, therefore, seems to be playing an increasingly important role in supporting the economic livelihoods of people who are nearing or entering retirement, in turn helping avoid the loss of highly skilled and experienced workers to the economy as a whole. 55+ 52.4% IT & TELECOMS 26.7% OTHER AGED Source: Survey of over 500 home businesses, Cebr analysis 45-54 Source: Survey of over 500 home businesses, Cebr analysis 20 THE HEART OF HOME BUSINESS BRITAIN Moreover, it found that women are running a business from home where most feel they could or would not under different circumstances. Where 31% of male home business owners said that they would otherwise be running the business outside the home, only 15% of female business owners thought the same. Almost half (49%) of the women surveyed said they would otherwise expect to be unemployed or in part-time work, while 58% of men thought they would be in full-time work or run the business elsewhere. Mumpreneurs contribute an estimated £7bn to the economy With the widely-acknowledged rise of mumpreneurs, estimated by one report last year to be contributing over £7bn to the UK economy, home business ownership is providing flexibility to, and unlocking potential within, demographics that might not otherwise seek traditional employment.18 Research consistently highlights the economic value that could be unlocked by improving the proportion HOME BUSINESS 100 21 of women in employment, with PwC’s Women in Work index showing that the UK could boost GDP by £170bn if it increased female employment levels to those seen in Sweden.19 If home business ownership is helping more people to find flexible employment, it is also, our survey suggests, much more of a positive choice than something borne out of financial necessity. While 24% did say that they would expect to be unemployed if they did not run their home business, most thought they would either be in full or parttime employment (39%) or running their business outside the home (28%). That would suggest that most are actively choosing to run a business from home, with the flexibility and familiarity it offers to those looking to launch a second career, or build a livelihood around family commitments. The next chapter will explore these motivations in more detail, sharing insights from home business owners on why they chose to start up at home, the day-to-day experience of running a home business, and the opportunities and challenges that home business ownership presents. SOUTH-WEST SUCCESS TOM PUGH JONES, PROGRESS PEOPLE Felicity Cox has turned her cookware and tableware import expertise into a budding e-commerce business Felicity Cox founded e-commerce German tableware business Calf House in 2014, but she has been working at home for over three decades. “I had worked for around 15 years in an office environment,” she says. “I left because, when I had my first son and when I wanted to re- start my professional life, it made more sense to do it from home.” For Felicity, the flexibility of owning her own home business is one of the key advantages. “I will usually be sat at my desk at 9am and take a lunch break, like most other employees. But, I can also take time at some point in the day to do things like play tennis, and make up for the time by working a little later into the evening.” In 2014, she decided to turn her importing experience with European tableware and cookware into her own business. “I knew the customer base was out there and the demand was clear... it wasn’t a leap into the unknown.” Yet although Felicity believes that, “for people of my age, the home business is a great way to go,” she has some words of caution for younger would-be homepreneurs. “I don’t think young people should jump straight into a home business. I think Tom credits the area as “a great place to live an: active, healthy and with well-balanced lifestyle. Over the last decade superfast broadband has been rolled out across Cornwall and makes it a great place to be digitally connected and efficient.” they should be in an office, learning how to interact, working with other people and getting a grounding there. They can then, at a later date, transfer those skills to a home business.” CASE STUDY FIGURE 4 – IF I WASN’T RUNNING A HOME BUSINESS, I WOULD BE... Swapping City for coast unlocked the South West’s burgeoning tech economy, and the attractions of sand and sea, for Tom Pugh-Jones and Joylon Ferrier Co-founders Tom and Joylon first met when a mutual friend invited them both for a pint in Cornwall, and soon after an entrepreneurial venture was born. “We started as an executive search company wanting to work with growing companies in the SouthWest,” remembers Tom. Their client list now spans fast-growth brands in the fashion, drinks and tech sectors. CASE STUDY THE SECOND CAREER FELICITY COX, CALF HOUSE 8% There are, he says, “a growing number of tech businesses within the region, and many have been dubbing Cornwall as “The Silicon Coast”. A number of our clients are actually fashion brands that started off as home businesses and which have now grown in to multi-million pound businesses. 29% 7% FEMALE HOME BUSINESS OWNERS 7% 19% 9% 15% MALE HOME BUSINESS OWNERS 31% UNEMPLOYED FULL-TIME EMPLOYEE “Starting a business at home has allowed us to create and grow a lean and profitable business,” Tom says. “We are now in the position whereby we can move in to our new office and take the business to the next level. PART-TIME EMPLOYEE 27% 21% 8% RUNNING MY OWN BUSINESS WITH A NON-HOME LOCATION AS MY BASE OTHER 20% DON’T KNOW Source: Survey of over 500 home businesses, Cebr analysis 22 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 23 CHAPTER THREE GETTING STARTED From lightbulb moments of inspiration, to changing personal circumstances and long-held individual ambitions, there are myriad reasons why people choose to start a home business. Above all, starting out from home allows for a flexible and affordable approach that reduces the risk inherent in a new venture. HOME BUSINESS BRITAIN THE EXPERIENCE As the first two chapters have highlighted, more people than ever are choosing to start and run businesses from home, embracing both the opportunities and challenges that self-employment offers. This final chapter will explore the motivations and experiences of the people powering the UK’s home business economy. It is based on interviews with members of the Home Business 100, a community of home business owners inspired by Vonage UK. For Marcus Wilson, Founder of Little Fingers Baby Food, starting at home was a way of trialling his idea for organic, self-feeding baby food, without taking on the full infrastructure costs up-front. “We wanted to get the business going but not put ourselves under immense pressure, and the home business route [allowed] us to significantly keep costs down. My wife works full-time, so childcare would have been a much bigger issue if I weren’t operating from home,” he says. Many who start out from home are looking to minimise costs, even if they eventually envisage running their company elsewhere. For Tom Tigwell, founder of premium juice maker Mission Juice, starting the business from home was a way of making the most of his small pot of initial funding: “Because of my low level of investment, I need to save as much money as possible,” he says, “So, I’ve set up a home office and although I want to move out eventually, it works for me right now.” Family circumstances are often the motivation for new home business owners. Ali Golds, who runs a business development consultancy, built her business coaching expertise into a home business to “give the best home life that I could to my son. I found it very hard to balance being a single parent and working: trying to get from work to the child minder, or even finding a child minder to start with. It’s much easier to plan your life when you work for yourself.’ For Clara Bentata, Co-founder of online baby boutique retailer Lucy and Belle, the inspiration was to provide something missing in the market: “It all started with me trying to find brands for my children that weren’t widely available in the UK,” she says. “I started discovering all these great products from around the world that I knew the UK market would love. So I decided to stock the brands myself.” “It’s much easier to plan your life when you work for yourself.” Other home business owners are harnessing the skills they have developed during their career. Film-maker Paul Wightman gave up his job with a sports production company to launch Indigo Dingo, a creative agency working with big and small brands in the sports, entertainment and corporate sectors. Initially concerned about the lack of interaction that working from home would mean, he found that vastly improved connectivity has allowed him to maintain effective collaborations: “It’s made it easier to make and maintain close contacts and to collaborate in real-time with remote colleagues, without having to always be in the same room. Technology has completely redefined how creative people interact.” Above all, it is the flexibility that attracts many who start and run businesses from home. As Tom Pugh-Jones, Co-founder of recruitment and relocation service Progress People, reflects: “You don’t need to be in the City of London, wearing a suit, getting on the tube every day – you just need a good phone line and good relationships.” “TECHNOLOGY HAS REDEFINED HOW CREATIVE PEOPLE INTERACT.” Paul Wightman, Indigo Dingo 24 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 25 TOP TIPS GETTING GOING For those who get a home business up and running, the challenges start coming thick and fast: from finding customers to delivering on contracts, dealing with admin and building new and existing relationships. “It was scary,” recalls Jacqui Burke, Founder of HR and training consultancy Flourishing People. “Finding the first client is the biggest fear. It felt like stepping blindfolded off a cliff into the unknown, and having to believe that there was something solid on the other side.” Like many home business owners, Jacqui found herself quickly having to develop new skills. “I came from a corporate environment where I had an IT department to fix a broken laptop and an accounts department to sort out financial issues. All of a sudden I was doing absolutely everything myself. I wasn’t a great financier or a great IT technician, but I’ve had to learn to do those things over the years.” Jo Hockley, Founder of Toddlebike, similarly reflects that, “my skill set is amazingly broad now — I am the CEO, accountant, receptionist and cleaner all rolled into one.” Others point to the need to bring in the right help and not try and do everything alone or without the right advice. “The farther down this road you get, the more you realise the need for expert advice,” reflects Mission Juice’s Tom Tigwell. “I wish that I had been a legal expert and supply chain expert six months ago so that I could protect my idea and get it bottled faster.” “The biggest challenge you will have to overcome is the thought of walking away.” Jo Hockley, Toddlebike While home-business owners are perennial multi-taskers, seemingly managing the work of several people, many highlighted the limitations of trying to do everything alone, and the importance of building a strong network. “Networking is a non-negotiable for any business but even more so when you run one from home,” says Ali Golds. “Getting out and about, and meeting other business owners on a regular basis, not only helps put challenges into perspective but also offers a heads-up for potential sales, partnership and collaborative opportunities. Lucy Woodhouse, half of the team behind frozen yoghurt maker Claudi & Fin, stresses that home businesses can benefit from outsourcing work and harnessing the skills of freelance support. “Do your research and you can tap into a really talented pool of people. They want to keep their clients happy so you get a great service from them.” Many would like better mentoring and support to be available. “It would have been unbelievably valuable to me when I was first starting out to have had a mentor, or someone to help me tap into a community of business owners,” says Jo Hockley of Toddlebike. “I think we work well when we work together, and you don’t naturally get that when you are a home business.” Working with others, even on an outsourced basis, can help combat another problem that many home businesses spoke of: the isolation of working alone. “There is no feedback, no brainstorming, no socialising with other people,” says Christina Poelzl-Huemer, of TinaPoelzlDesign. “Networking is a non-negotiable for any business but even more so when you run one from home.” As well as the ability to juggle multiple priorities, home business owners identified determination and self-belief as two key attributes for success. “Parts of the journey will be unexpected, some challenging and maybe even scary,” says Lucy Woodhouse. “But if you have that belief then you will convince others, you will succeed and you will love it.” Flourishing People’s Jacqui Burke believes that more investment needs to be made in shared spaces for home business owners. “The biggest thing we need in my local area is meeting-places where people who are running home based businesses can come together and spend time with other home-based businesses, where we can access particular services or talk to other home businesses about how to resolve a problem.” Likewise, says Kudlip Singh, part of the family team behind chilli sauce maker Mr Singh’s Sauces, “the biggest challenge you will have to overcome is the thought of quitting and walking away. But, if you really believe in your business, then you will make it work and figure out how to take it from one to ten.” “I AM THE CEO, ACCOUNTANT AND RECEPTIONIST ALL.” ROLLED INTO ONE GETTING SUPPORT For home business owners, often running everything themselves, no success comes without commitment and determination. “Typically I get up at 4am and will work until 6am, when I try to get an hour’s sleep,” says Rupert Connelly of consultancy marketplace DIALaBRAIN. “I’m then up again at 7am and won’t finish until 8 or 9pm. When you start your own business you have to be determined to succeed, but at the end of the day I’m my own boss and I feel good about what I’m doing.” Achieving this may, she believes, require a shift in approach from local government towards home businesses. “Our local councils provide quite a lot of business support, but they are only aware of the businesses paying business rates. So when they do consultations about what small businesses in our area need, they fail to talk to home businesses. We’re just not on their radar: they don’t know how to access us, or even that we exist.” The home business sector has grown rapidly in recent years and the pace shows no sign of slowing. If a supportive environment can be nurtured, with facilities and advice that help home business owners to start up and sustain their enterprises, there is no reason why home businesses cannot play an ever-growing role in the UK economy of tomorrow. BE DISCIPLINED: “It may be that you work better from 6am2pm or you may want to stick to the regular 9am-5pm working hours. Nevertheless, it’s important you keep to the hours you choose as it provides consistency for customers, while allowing you to work when you’re most alert.” ANNA MORRISH, QUIBBLE CONTENT MAKE IT PERSONAL: “If you want your business to have longevity you have to stay in touch with what motivates you. It’s not just about getting more clients and more money, it’s about doing work that is fulfilling.” PAUL WIGHTMAN, INDIGO DINGO PLAN TO SUCCEED: “Have a sound business plan to keep you on the straight and narrow so you can tick off points each day, and that way you don’t get distracted by the washing up at home” PIA CATO, VANILLA POD BAKERY MAKE TIME TO SELL: “Blocking out a firm couple of hours at least each day for prospecting, with distractions stopped at the office door, is crucial. Once you get into the habit it becomes like second nature, and the results pile up.” ALI GOLDS SHARE YOUR IDEAS: “By writing regular content you create something to share on social media – something to talk about. Rather than sharing content from other websites, or not sharing anything at all, you can share your own content, which will drive visitors to your blog and products.” ADEEL MOHMOOD, ASPIRE ECIG 26 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 27 EXPERT VIEW FROM KITCHEN TABLE TO GLOBAL MARKETS PAUL LINDLEY FOUNDER AND CHAIRMAN, ELLA’S KITCHEN Today Ella’s Kitchen, the organic baby food business I founded a decade ago, is the UK market leader, retails in over 40 countries and sees annual revenues of over $100m. Yet go back those ten years, and it was a very different story. I vividly remember being round my kitchen table with a focus group of three year-olds, mixing and tasting the first test products: fruit smoothies that would become our best-seller. Next year, we expect to sell the billionth portion of Ella’s Kitchen food, yet back then the entire business fitted neatly around our kitchen table. I ran the business from my home for the first three years, branching out from the kitchen to the kids’ playroom as our numbers grew. It was in that formative period as a home business that the culture that defined Ella’s Kitchen through its rapid growth was created and moulded. If you are building a team in a home business environment, then you end up working closely literally and figuratively; the working environment is never perfect but you make do and mend. There’s never quite enough space or equipment to go around, but you manage and it can bring a team closer together, working without the corporate comforts many may be used to. The early years in the makeshift office have become part of the company legend; the weekly meetings in the ball pit, waiting your turn to use our one phone line, the uneven floor that meant everyone’s office chairs used to slide inexorably back towards the middle of the room. We were dealing with the everyday ups and downs of a young business — the tough negotiations, the tight deadlines and the stressful moments — surrounded by children’s toys and clutter: a sometimes surreal experience (especially for those visiting for meetings) but also one that was true to our culture as a childlike business that tried to put itself in the tiny shoes of its consumers. Building the early-stage Ella’s Kitchen from home also meant making that team an extension to my family; we would eat together at lunchtimes around my kitchen table, and my kids made individual drawings for the first twenty or so staff to help welcome them to the team. It was in our formative years as a home business that the culture that defines Ella’s Kitchen was created and moulded All of which is not to pretend that it isn’t hard work running a business and growing a team from your home. You need to work hard at the collective culture and ethic, to make sure that working cheek by jowl doesn’t end up with people stepping on each other’s toes. And if your plan is to grow, there will come a time when you need to find a new home, one big enough for your team and your ambitions. Yet leaving the home environment behind doesn’t have to mean you leave behind everything that is good about running a company from home. We have worked hard over the years to make sure our new offices, converted barns on a nearby farm, have the same warmth and sense of community with a workforce approaching 100 as we did as a team of ten working out of my kids’ playroom. Indeed, the mission and culture of the business, while it has scaled over time, is still fundamentally the same as in those early days. Which goes to show, an idea and a business which starts small in the comfort of your own home, can indeed go out to take on the world. 28 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 29 WHAT NEXT? GET STARTED GET INSPIRED If you’re thinking about starting a home business, check out the Government’s ‘Home Business Guide’ online, or download the ‘Start Right Guide’ published by Vonage, with tips and advice on starting and running a home business: https://www.vonage.co.uk/starting-guide/ Visit the Home Business 100 website (www.homebusiness100.co.uk) and the Vonage blog (https://www.vonage.co.uk/blog) to find more home business stories, tips and advice GET INVOLVED GET CONNECTED Find out more about the Home Business 100 and register your interest in joining at www.homebusiness100.co.uk/sign-up Visit www.vonage.co.uk to see how our cloud communications solutions are supporting home businesses ABOUT Vonage (NYSE: VG) is a leading provider of cloud communications services for businesses. Vonage transforms the way people work and businesses operate through a portfolio of communications solutions that enable internal collaboration among employees, while also keeping companies closely connected with their customers, across any mode of communication, on any device. In 2015 and 2016, the Company was named a Visionary in the Gartner Magic Quadrant for Unified Communications as-a-Service, Worldwide and also earned the Frost & Sullivan Growth Excellence Leadership Award for Hosted IP and Unified Communications and Collaboration (UCC) Services. www.vonage.co.uk Home Business 100 is a community inspired by Vonage, to celebrate and spotlight the UK home business community. It has brought together people from across the UK, running businesses from home in a wide range of sectors, from food and drink to financial services, business services to creative industries and manufacturing to hospitality. Home Business 100 is telling the stories, highlighting the success and sharing the experience of the people making the UK’s home business economy tick. www.homebusiness100.co.uk @HomeBiz100 facebook.com/homebiz100 30 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 31 MEET THE HOME BUSINESS 100 ACCREDITED MARKETING LTD ABACUS FOUNDER: SEBASTIAN VAN MOOK BASED: WEST MIDLANDS WWW.ABACUSFINANCIALADVISERS.CO.UK FOUNDER: CHARLOTTE GREENMAN BASED: WEST MIDLANDS WWW.ACCREDITEDMARKETING.COM ALI MILLER LONDON FOUNDER: ANNA SCOTHERN BASED:LONDON BASED: WWW.ALIMILLER.CO.UK WWW.ANNASCOTHERN.COM FOUNDER: CHRIS WARD BASED: SOUTH EAST WWW.AWARDHEALTHANDSAFETY.CO.UK BETTY’S BIRDS FOUNDER: BETH NICHOLAS BASED: SOUTH WEST WWW.BETTYSBIRDS.COM FOUNDER: ALEXA TEWKESBURY BASED: EAST MIDLANDS FOUNDER: ADEEL MOHMOOD BASED: BASED:WALES WWW.BAABAADESIGN.CO.UK EAST OF ENGLAND FOUNDER: FELICITY COX BASED: SOUTH WEST WWW.CALFHOUSE.CO.UK THE CHOCOLATE CELLAR WWW.CHERRYTREECOUNTRYCLOTHING.COM WWW.THECHOCOLATECELLAR.CO.UK COLOUR THEIR DAY CLAUDI & FIN WWW.CLAUDIANDFIN.CO.UK CAKES WITH FACES WWW.CAKESWITHFACES.CO.UK CHERRY TREE COUNTRY CLOTHING BASED: WWW.BERRYANDRUSSELL.COM WWW.BIGCHEESEMAKINGKIT.COM WWW.CELEBRATIONBALLOONS.BIZ BASED:WALES BASED:LONDON WEST MIDLANDS NORTHERN IRELAND BASED:LONDON BASED:LONDON BASED: WWW.CATENA-NETWORK.CO.UK BASED: FOUNDER: BALA CROMAN FOUNDERS: LUCY WOODHOUSE AND MERIEL KEHOE BASED:SCOTLAND EAST MIDLANDS FOUNDERS: JIM & JANET CAMPBELL FOUNDER: BETHAN BITHELL FOUNDER: LUCY BERRY & EMILY RUSSELL FOUNDER: AMY CRABTREE BASED: CELEBRATION BALLOONS FOUNDER: MARIE ANTHONISZ BERRY & RUSSELL FOUNDER: AILSA PROVERBS FOUNDER: CLAIRE BICKNELL THE CEYLON PLANTERS WWW.ASPIREECIGUK.CO.UK THE BIG CHEESE MAKING KIT CATENA NETWORK CALF HOUSE ASPIRE ECIG UK BAA BAA DESIGN LIMITED FOUNDER: CRAIG LEWIS SOUTH WEST WWW.ALEXATEWKESBURY.COM ANNA SCOTHERN FOUNDER: ALI MILLER AWARD HEALTH AND SAFETY LTD ALEXA TEWKESBURY CREATIVE BIZDEV FOUNDER: ALI GOLDS BASED: SOUTH EAST WWW.CREATIVEBIZDEV.CO.UK FOUNDER: ANDREA MARTIN BASED: NORTH WEST NORTH WEST CORNERSTONE BRANDS LTD FOUNDER: OLIVER BRIDGE BASED:LONDON SECTOR:RETAIL WWW.COLOURTHEIRDAY.COM WWW.CORNERSTONE.CO.UK DIALABRAIN LIMITED DARIMEDIA FOUNDER: YEMI DARAMOLA FOUNDER: RUPERT CONNELLY BASED:LONDON BASED: WWW.DARIMEDIAS.COM WWW.DIALABRAIN.COM SOUTH WEST 32 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 33 MEET THE HOME BUSINESS 100 DOLLY DIMPLES REBORN NURSERY DISCOVRR FOUNDER: HANS ABANIFI BASED: SOUTH EAST WWW.DISCOVRR.CO.UK FOUNDER: CAROLE ANNE HARVEY BASED: NORTH WEST WWW.DOLLYDIMPLESREBORNNURSERY.COM FOUNDER: ED HOLLANDS BASED: FOUNDER: JAMES ROBBINS FOUNDER: ZAHEER ANWARI BASED:LONDON BASED: SOUTH EAST WWW.THEDYNAMICTRADER.COM FOUNDER: JUSTINE FONTAN & LAURENE FONTAN FOUNDERS: TOM HARDY & CHRIS SMITH BASED: BASED: WWW.FLOURISHINGPEOPLE.CO.UK FOUNDER: PHILLIP COX BASED:SCOTLAND BASED: WWW.EMBROIDEREDORIGINALS.CO.UK WWW.ENGINEERINGWITHWATER.CO.UK NORTH WEST FOUNDER: GUY HEARN BASED: SOUTH EAST WWW.GUYHEARN.COM HENRY’S AVALANCHE TALK FOUNDERS: DAVID & TRACY HUNWICK BASED:LONDON BASED: WWW.HENRYSAVALANCHETALK.COM WWW.HOLIDAYCOTTAGESANDVILLAS.COM IDENTITY PAPERS FOUNDER: LINDA HASKING BASED: SOUTH EAST HARBOROUGHBLINDS FOUNDER: PAUL MOTTLEY BASED: HYDRO HOT TUBS FOUNDER: SIMON MORRIS BASED: SOUTH EAST SOUTH EAST INDIGO DINGO FOUNDER: PAUL WIGHTMAN BASED: EAST MIDLANDS WWW.HARBOROUGHBLINDS.COM HOLIDAY COTTAGES AND VILLAS FOUNDERS: HENRY SCHNIEWIND & CHRIS RADFORD ENGINEERING WITH WATER FOUNDER: MARION MITCHELL EAST OF ENGLAND GUY HEARN PHOTOGRAPHY SOUTH EAST WWW.HYDROHOTTUBS.COM ISABEL & INK FOUNDER: ISABEL BIRRELL BASED:LONDON EAST OF ENGLAND WWW.ELSIEROAD.CO.UK THE FAMILY GRAPEVINE ETERNAL IRIS FOUNDERS: BEN CHAPMAN & MICHAEL BEECH BASED: SOUTH EAST WWW.ECODREAMS.CO.UK EMBROIDERED ORIGINALS ELSIE ROAD FOUNDER: JACQUI BURKE ECO DREAMS BASED: WWW.DRYSURE.CO.UK EAST MIDLANDS WWW.DRIVENMEDIA.CO.UK THE DYNAMIC TRADER DRYSURE FLOURISHING PEOPLE DRIVENMEDIA WEST MIDLANDS WWW.ETERNALIRIS.COM FOUNDERS: NIKKI VINE, GENEVIEVE ARLIDGE & KATHERINE DANIEL BASED: WWW.IDENTITYPAPERS.COM FETCH THE DRINKS FOUNDER: SEAN MCFETRICH BASED: SOUTH WEST WWW.INDIGODINGO.COM JEN SMITH SOCIAL MEDIA FOUNDER: JEN SMITH BASED: SOUTH EAST JK FINE CHOCOLATES FOUNDER: JAMIE KEMP BASED: SOUTH EAST WWW.ISABELANDINK.COM LAUREN CATRIS DESIGN FOUNDER: LAUREN CATRIS BASED:WALES SOUTH EAST WWW.THEFAMILYGRAPEVINE.CO.UK WWW.FETCHTHEDRINKS.COM WWW.JENSMITHSOCIALMEDIA.CO.UK WWW.JKFINECHOCOLATES.CO.UK WWW.LAURENCATRIS.COM 34 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 35 MEET THE HOME BUSINESS 100 LITTLE FINGERS BABY FOOD L’ETALE FOUNDERS: JEMIMA BOOST & EDOUARD BOOST FOUNDER:MARCUS WILSON BASED: YORKSHIRE & HUMBER BASED:LONDON WWW.LETALE.CO.UK LOSE IT AND LOVE IT LITTLE LIGHTBULB FOUNDERS: RYAN VAUGHAN & JON RAMSBOTTOM BASED: WWW.LITTLEFINGERSBABYFOOD.CO.UK NISHA HAQ PHOTOGRAPHY FOUNDER: MARTIN DEVAUGHAN FOUNDER: NISHA HAQ BASED:WALES BASED: SOUTH EAST SOUTH WEST WWW.LITTLELIGHTBULB.CO.UK LOVE FROM DAISY THE NET PRINT SHOP OFFICE PANTRY FOUNDERS: GILES MITCHELL & CHARLES ARNOLD BASED: WWW.THENETPRINTSHOP.CO.UK WWW.NISHAHAQPHOTOGRAPHY.COM ONTRACK ADVICE LUCY AND BELLE FOUNDER: CHRISTY HYSLOP FOUNDER: ALI HEARN FOUNDER: CLARA BENTATA FOUNDER: TOM KLIMES BASED:SCOTLAND BASED:LONDON BASED:LONDON BASED: YORKSHIRE & HUMBER WWW.OFFICEPANTRY.CO.UK PERFECT VILLAS 4 U OSCAR & OWL FOUNDERS: PHILIPPA MAIN & ALEX DRANSFIELD SOUTH WEST FOUNDER: WENDY IRVING BASED: WEST MIDLANDS BASED:LONDON WWW.LOSEITANDLOVEIT.CO.UK MISSION JUICE FOUNDER: TOM TIGWELL BASED: SOUTH WEST WWW.LOVEFROMDAISY.CO.UK WWW.LUCYANDBELLE.COM WWW. ONTRACKADVICE.COM MOVEMENT FOR MODERN LIFE MORGAN’S DOG BOUTIQUE FOUNDERS: RHYS & SIAN MORGAN FOUNDER: KAT FARRANTS BASED:WALES BASED:LONDON PET&R LLP FOUNDERS: PETER & LYNNE HAMMOND BASED: WWW.MISSIONJUICE.CO.UK MR BOOKS FOUNDER: MISHA ROSENTHALL BASED: EAST OF ENGLAND WWW.MORGANSDOGBOUTIQUE.COM WWW. MOVEMENTFORMODERNLIFE.COM FOUNDERS: KULDIP SINGH SAHOTA BASED:LONDON FOUNDERS: NICKY CHISHOLM & SARA GUIEL BASED: WWW.MRBOOKSESSEX.CO.UK WWW.MRSINGHSSAUCE.CO.UK FOUNDER: ALISON RACKLEY BASED:WALES BASED: NORTH WEST PROGRESSWEST FOUNDERS: TOM PUGH-JONES & JOLYON FERRIER BASED: WWW.PINKCORSAGE.CO.UK FOUNDER: ANNA MORRISH BASED: EAST MIDLANDS SOUTH WEST WWW.PROGRESSWEST.CO.UK QUIBBLE CONTENT PLYT FOUNDERS: LISA & IAN MCCARTNEY WWW.PERFECTVILLAS4U.COM PINK CORSAGE NORTH EAST WWW.PETANDR.CO.UK MUMPRENEURS NETWORKING CLUB MR SINGH’S SAUCES WWW.OSCARANDOWL.COM REDNINE FOUNDER: ROBIN WORRALL BASED: SOUTH WEST SOUTH EAST WWW.MUMPRENEURSNETWORKINGCLUB.CO.UK WWW.PLYT.CO.UK WWW.QUIBBLECONTENT.CO.UK WWW.REDNINE.CO.UK 36 THE HEART OF HOME BUSINESS BRITAIN HOME BUSINESS 100 37 MEET THE HOME BUSINESS 100 ROBIN ECKARDT: SALES MASTERY MAGAZINE CONTEMPORARY ARTIST FOUNDER: ROBIN ECKARDT BASED: SOUTH EAST FOUNDER: COLETTE MACHADO BASED:LONDON SCOTTISH SEA GLASS FOUNDER:GAYNOR HEBDEN-SMITH FOUNDER: JO HOCKLEY BASED: SOUTH EAST TUFFSCREEN SCREEN PROTECTION LTD TRAINING UNLIMITED TODDLEBIKE FOUNDER: JAN FELTON BASED: NORTH WEST FOUNDER: TRISTAN FOWLER BASED: SOUTH WEST BASED:SCOTLAND WWW.ROBIN-ECKARDT.CO.UK WWW.SALESMASTERYMAG.COM SERVICES FOR STUDENTS LONDON LTD WWW.SCOTTISHSEAGLASS.CO.UK SIGMATEN ACCOUNTING SERVICES LTD SILVER MOOR BUSINESS CONSULTING LLP FOUNDER: FABIO ROMERO FOUNDER: MUHAMMAD NADEEM FOUNDER: JOHN BAKER BASED:LONDON BASED:SCOTLAND BASED: WWW.SERVICESFORSTUDENTS.CO.UK WWW.SIGMATEN.CO.UK WWW.SILVERMOORCONSULTING.CO.UK SOUTH WEST STERLING BUSINESS COACHING THE SPOTTED ZEBRA COMPANY SPICE POTS WWW.TODDLEBIKE.CO.UK FOUNDER: MELANIE AULD FOUNDER: JENNIFER LEASK FOUNDER: SIMON MEADOWS BASED:SCOTLAND BASED:WALES BASED: SOUTH WEST WWW.TRAININGUNLIMITED.CO.UK USHIWEAR FOUNDER: NEIL AND JILLY KAPUSI BASED: YORKSHIRE & HUMBER WWW.USHIWEAR.CO.UK THE VANILLA POD BAKERY USPAAH FOUNDER: IGLIKA GHOUSE FOUNDER: PIA CATO BASED:LONDON BASED: WWW.USPAAH.COM WWW.VANILLAPODBAKERY.COM WIGHTPRINT PUBLISHING VINTERIOR FOUNDER:SANDRINE ZHANG FERRON WWW.TUFFSCREEN.COM FOUNDER: IAN MATTHEWS BASED: EAST OF ENGLAND SOUTH WEST WORK FROM HOME WISDOM FOUNDER: JUDY HEMINSLEY BASED: SOUTH WEST BASED:LONDON WWW.SPICEPOTS.COM WWW.THESPOTTEDZEBRACOMPANY.CO.UK TAXFREEGAINS. CO.UK STIFFIES FOUNDERS: JAMES RITCHIE & NICK SYDNEY-SMITH FOUNDER: CHRIS MILLER BASED: YORKSHIRE & HUMBER BASED:LONDON WWW.STIFFIES.CO.UK WWW.STERLING-COACHING.COM TINAPOELZLDESIGN FOUNDER:CHRISTINA POELZL-HUEMER BASED: WWW.TAXFREEGAINS.CO.UK WEST MIDLANDS WWW.TINAPOELZLDESIGN.COM WWW.VINTERIOR.CO YOUR BUSINESS COMMUNITY LTD FOUNDERS: PAUL KELLY & TED WIGZELL WWW.WIGHTPRINT.COM WWW.WORKFROMHOMEWISDOM.COM YOUR PA TODAY 1712DESIGN FOUNDER: HELEN GREEN FOUNDER: MARK COLEMAN BASED:SCOTLAND BASED: WWW.YOURPATODAY.COM WWW. 1712DESIGN.CO.UK NORTH EAST BASED:LONDON WWW.YOURBUSINESSCOMMUNITY.CO.UK 38 THE HEART OF HOME BUSINESS BRITAIN FOOTNOTES 1. Department for Business, “Business Population Estimates for the UK and Regions 2015” (October 2015), p.1 11. “Business Population Estimates for the UK and Regions 2015,” p.8 2. Department for Business, “Business Population Estimates for the UK and Regions 2015” (October 2015), p.1 12. Office for National Statistics, “Regional Labour Market Statistics in the UK” (17th August 2016) 3. Department for Business, “Business Population Estimates for the UK and Regions 2015” (October 2015), p.1 4. Ofcom, “Cost and value of communications services in the UK” (January 2014), p.5 13. Tech City UK, “Tech Nation 2016 reveals that digital industries in the UK are growing 32% faster than the rest of the economy” (11 February 2016) 5. Aston University, “UK SMEs finally recovering from recession” (18 June 2015) 6. Department for Culture, Media & Sport, “Creative Industries worth almost £10 million an hour to the economy” (26 January 2016) 7. House of Commons Library, “Financial Services: contribution to UK economy” (26 February 2015), p.3 8. House of Commons Library, “Manufacturing: statistics and policy” (9 August 2015), p.3 9. House of Commons Library, “Construction Industry: statistics and policy” (6 October 2015), p.5 10. UKTI, “UK leads the way for Financial Technology (fintech) services says new research” (6 August 2014) 14. University of Strathclyde, “Over 50s emerge as entrepreneurs: Global Entrepreneurship Monitor UK Report 2013” (2 July 2014) 15. Bank of England, “Self employment: what can we learn from recent developments?” (2015), p.56 16. Telegraph.co.uk, “Entrepreneurial spirit thriving among baby boomers,” (4th August 2014) 17. House of Commons Library, “Business Statistics (7th December 2015), p.3 18. Telegraph.co.uk, “Mumpreneurs generate £7bn for UK economy,” (5th August 2015) 19. PwC, “Women in Work Index 2016” METHODOLOGY The report has been based on analysis by Centre for Economic and Business Research (Cebr), incorporating primary research by YouGov with UK home business owners and interviews with Home Business 100 members. The Home Business Research compiled by Cebr relies on a number of sources to illustrate the role home businesses play in the UK economy. Specifically, it uses information from the Office for National Statistics’ (ONS’) Characteristics of Home Workers publication to estimate the current and historic number of home businesses. As it accounts for all individuals working from home, including people that are employed by a company based elsewhere but operate from their house, this has been narrowed down further by considering only self-employed home workers. In order to examine the home businesses’ employment share, it relies on the same ONS dataset and uses the number of all employed who reported home working status as the base. This figure is very close to, but slightly below, the total employment figure. When comparing the regional distribution of home businesses with that of the private sector business population it relies on the home business data from the ONS dataset as well as the Business Population Estimates for the spread of all businesses. The sectoral analysis of home businesses is done based on data from a YouGov survey that was commissioned for the purposes of this report. The survey was conducted online between August 1st– 9th, 2016. The total sample size was 532 home business owners. The same survey was used to analyse the average number of employees in a home business and the relationship these employees have with the owner. The survey also provided the share of home business owners that believe they would be unemployed in the absence of their home business. This share was applied to the total number of home business owners to estimate what the unemployment level increase would be in the absence of home businesses. The average home business revenue figure is obtained from the YouGov survey and is multiplied by the number of businesses to estimate total annual revenue received by all home businesses. This figure is converted into a gross value added (GVA) estimate based on industry-specific revenue/ GVA relationships estimates from the Annual Business Survey. Other illustrative statistics regarding the home business population e.g. age distribution of owners and level of education obtained, are also obtained from the YouGov survey. The research was supported by insight gathering through interviews with Home Business 100 members, to explore the motivations and experiences of home business owners, and the main challenges they face. INSPIRED BY www.homebusiness100.co.uk facebook.com/homebiz100 @HomeBiz100