Home businesses across the North could generate an additional £3.09bn in revenue for the local economy if they grew beyond the home into commercial premises, according to a new study.
The report, Unlocking the UK’s Home Business Potential, surveyed over 500 home-based businesses across the UK.
It found that the potential increase in revenue for businesses looking to grow beyond the home is highest in the South, £4.27bn, the North, £3.09bn, and London, £2.76bn.
The research, by Vonage in partnership with the Centre for Economics and Business Research (Cebr) and YouGov, showed that scaling home businesses in the North could generate an additional £667m in profits by growing out of the home.
In the North, 20 per cent of businesses surveyed responded that the high cost of commercial office space was preventing them from growing out of the home
Synap is an example of a business started out of the home that has gone on to great success.
The tech education platform was started by two medical students in Leeds, James Gupta and Omair Vaiyani, from their bedroom.
Simon Burckhardt, managing director at Vonage UK, said: “Home businesses are an important driver of the economy in the North, however many are being held back and unable to scale due to the high cost of commercial office space.
“The report shows home businesses in the North have high levels of potential uplift in both revenue and profit compared to other regions in the UK, therefore it’s crucial that this issue is addressed at national and local government level for the benefit of the national economy as a whole.”