Michelle Rodger - Home is where the heart of our future economy is, and we should support it

Published on Saturday 18 October 2008 15:01

WORKING 5 to 9, what a way to earn a living. No, I'm not misquoting good ole Dolly Parton, merely reflecting on the growing number of entrepreneurs stumbling to the kitchen to pour themselves a cup of ambition not in the morning but during the evening, after a full day's 'real' work.

Fewer and fewer people are working a traditional shift from 9am to 5pm. A recent study found that as many as one in three now works between 5pm and 9am, with fundamental changes in working patterns and ever-increasing numbers of employees embracing flexitime, job shares and other innovative working arrangements.

As the Enterprise Nation Home Business Report 2008 reveals, that is the tip of the iceberg.

There are now officially more than 2.5 million entrepreneurs running their businesses from home, a 16% increase on last year. The real figure could be closer to eight million if part-time businesses are included.

Every week more than 1,400 home businesses are launched. The highest growth in home business is coming from stay-at-home mums, young people and the over-50s. The fastest-growing sectors are business and professional services, personal services, food, domestic energy and online trading.

Indeed, online trading has seen phenomenal growth: eBay-based home enterprises generated aggregate sales of 2bn in 2007, more than the annual turnover of some major UK retailers, including WHSmith.

The rise of the so-called 5–9 economy to date has been significant, and that growth is expected to escalate dramatically as a direct result of the credit crunch.

Job security is looking increasingly shaky. It was reported during the summer that thousands of professionals – lawyers, financial advisers, computer programmers and marketing managers – were looking for freelance work outside of normal office hours, and last week a leading economist predicted that 38,000 jobs could vanish in Scotland over the next year.

Technology has made it so much easier to work from home. Some 64% of home businesses surveyed in the Enterprise Nation Report said technology was critical to their success, with 84% relying on the internet, 79% on broadband, 86% on e-mail and 72% utilising mobile technology such as phones and BlackBerrys.

There's been a surge in the number of online support websites, such as BT Tradespace, ask500people.com and Enterprise Nation, designed to support people starting a home business.

The potential to grow a global operation from a home office with a small workforce is immense. With a focus on working with partners rather then employing personnel, and on turnover as opposed to headcount, these home businesses are quite simply redefining our perceptions of growth.

Emma Jones, founder of Enterprise Nation, says too many people think that home businesses are pin money businesses, when the reality is that they are very ambitious and should be supported as the future foundation of our fragile economy.

Home business owners are actually more optimistic about the future than other firms, with 72% saying they plan to win new customers in the next six months, and 58% working on developing new products and services.

Last month, research from insurance company RSA confirmed that seven out of 10 home businesses feel optimistic about beating the credit crunch, with only 8% definitely sure they will not be able to grow or maintain their level of business. Compare that with the business confidence surveys of late, and there's a vast difference.

Clearly, these home businesses need recognition and targeted support. According to Emma Jones, action needs to be taken at a national, regional and local level to allow home business to flourish and reach its full potential. There is a need to fully understand the size and make-up of the sector and introduce infrastructure and networks to give people the confidence to start and others the confidence to grow successful businesses from home.

Yet so far, her calls have fallen on deaf ears right across the political spectrum. She points to the fact that in March the Government published its enterprise strategy document entitled Enterprise: Unlocking The UK's Talent.

The first line reads: "This strategy sets out the Government's renewed enterprise vision to make the UK the most enterprising economy in the world and the best place to start and grow a business." But the 105-page strategy doesn't even mention the opportunity to start and grow a business from home.

Big business has begun to recognise the opportunities within the home business sector: BT, Royal Mail and Microsoft are all keenly engaging with small businesses. Surely it's time for the Government to pour everyone a cup of ambition.