Home-based businesses are a significant proportion of the small business sector. However, they are largely invisible, not separately identified in official statistics and difficult to survey. Home-based businesses account for 36% of all businesses in the UK. Most are full-time businesses and one in ten have achieved significant scale. They are found in all industry sectors. Only a small minority are largely or exclusively engaged in e-commerce. There is a striking association between areas with the highest proportions of home based businesses and the geography of economic prosperity. Local authorities should make home based business a focus for economic development.
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