Home business start-ups encouraged

Entrepreneurs will be given more freedom to start and grow home-based businesses, the government has announced.

Home-based businesses contribute £300 billion per year to the economy and around 70% of new businesses now start at home.

The Department for Business, Innovation & Skills has announced a series of new measures to encourage people to start up in business from their homes. The government wants to make it clearer that:

  • residential tenancy agreements should not be affected by home businesses in rented homes
  • planning permission is not normally needed for home businesses
  • home businesses will not usually attract business rates.

New legislation and a new model tenancy agreement will be produced to make the process easier for landlords and tenants in rental properties.

The Business Minister Matthew Hancock announced the measures at the first Home Business Summit, organised by small business network Enterprise Nation.

Mr Hancock said:

"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."

Emma Jones, founder of Enterprise Nation, said home-business entrepreneurs are:

"... not people starting businesses out of necessity through lack of jobs, they are part of a growing movement that is responding to the new opportunities technology brings and actively taking control of their own destiny by starting out from home."

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