South East England Development Agency (SEEDA)

19,500 SMEs relocated to run businesses from home during the economic downturn according to Business Link research

Release date: 9 October 2009

Over 325,000 businesses or 44% of small and medium-sized businesses, in the South East are based from home rather than an office or other workplace.

According to research* published by Business Link this month:

• The main reason for being based from home is the ability to keep costs low – cited by 53%
• 6% of those surveyed became home based in response to the downturn
  This means than an extra 19,500 SMEs are now based from home.

• Nearly half are under the £68,000 VAT threshold
• 53% of home based businesses are single person SME and 84% of sole trades are home based

The main disadvantages of working from home cited by those surveyed included a difficulty in separating work from home and being self-reliant. Over a third of home based SMEs have joined a network or membership organisation which may help to combat these issues.

Rosemary French, Business Link, comments, “According to the research, the overwhelming reason for being home based is to keep costs to a minimum and some 19,500 South East businesses moved to working from home in response to the downturn. Business Link supports businesses in all situations, free of charge. We encourage business owners to contact us to meet an experienced and qualified Business Link Adviser to discuss their business issues”.

Any established business can have a free business review ‘health check’ with an impartial and qualified Business Link Adviser. Book a business review by phone on 0845 600 9 006 or visit www.businesslink.gov.uk/southeast.

*Survey of 437 small and medium sized home based businesses in the South East.

For more information about the Research visit www.businesslink.gov.uk/SouthEast_files/HotTopic809.pdf

For more media information, please contact:
For a copy of the full report or to speak the Business Link’s Insight’s Manager to discuss the research, please call:

Francesca Fogell, PR Executive (Regional), Business Link
Tel: 01483 713343
Email: Francesca.fogell@businesslinksurrey.co.uk

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