Boost for Home-Based Businesses
Enterprise minister Matthew Hancock will today launch the new home business initiative, making it easier to start a business working from home.
Matthew Hancock said:
“It’s this spirit of personal endeavour and self-determination that is driving our economic recovery.”But home businesses don’t just fire up the economic engines and create jobs, they turn dormitory towns into living communities, they keep our streets safer, and by driving down car emissions, cleaner too.
“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.”
Under the measures a new model tenancy agreement will be made available to landlords so people can start home businesses without it undermining their tenancy agreement.
The legislation is being introduced in response to research undertaken by the Department of Business, Industry and Skills (BIS) and entrepreneur organisation Enterprise Nation, which found that home businesses contribute £300bn to the UK economy each year.
According to this study, there are currently 2.9m of these home-based companies in the UK, equivalent to 59% of all UK small enterprise.
Home-based entrepreneurs currently contribute £1 out of every £11 of turnover generated by UK Ltd, the report claimed.
In order to encourage more start-ups to take the domestic plunge, the Government will cut the cost and bureaucracy associated with running a business from home.