More than two-thirds of home businesses run by first time entrepreneurs


A study from Direct Line for Business and Enterprise Nation found 69 per cent of these businesses are started by first-time entrepreneurs.

The Yorkshire Post reports that there has been a sharp rise in the number of business start-ups in recent years.

A record 581,173 new businesses registered at Companies House in 2014, up 10 per cent on the previous year, bringing the total to 3.1 million.

With so many people dipping their toe into the world of business ownership for the first time, there is a clear demand for support and advice, Direct Line for Business said.

The Home Business Survey, conducted with 60,000 Enterprise Nation members in late 2014, showed a high number were keen to tap into business networks and access mentoring services to grow their ventures.

Jane Guaschi, business manager, at Direct Line’s dedicated small business division, said: “There are a growing number of businesses operating from home.

“With so many businesses being started by first timers, there’s a great need to ensure these business owners who contribute so much to the economy and society, get access to good quality advice.”

Ms Guaschi said the Growth Vouchers programme, which was launched in January 2014, showed accessing advice “helps businesses to grow and increase their turnover each year”.

“With this programme having now stopped, there is a clear need for an advice based programme to take its place,” she said.

The Coalition government’s Growth Vouchers scheme awarded £2,000 funding to firms so they could access strategic business advice on finance and cash flow, recruiting and developing staff, marketing, digital skills and other areas.

Emma Jones, founder at Enterprise Nation, said the organisation is campaigning for more support for home-based businesses.