Enterprise Nation

A survey from telecoms company O2 shows that in the last 8 months more than 1 n 10 businesses have chosen not to renew a lease on an office or business premises and are now working remotely or from home. It is estimated that over 400,000 small businesses have quit their offices since the onset of the credit crunch in November and that almost two thirds of those still working from a dedicated business premises are considering giving it up within the year.

Busy streets

Residential streets across the UK continue to buzz a s yet more businesses see the benefits of starting up from home - lower start-up costs, the 60 second commute, work/life balance etc.

This has been confirmed in research just out from O2.

The company questioned over 500 small businesses and identified the shift back home. The need to reduce costs was cited by 62 per cent per cent of the businesses questioned as the greatest reason behind the move. Credit crunch fears and the threat of possible recession were also revealed as making small businesses reluctant to commit to new fixed term rental contracts.

In addition to saving on overheads, flexible working and advances in mobile technology have also been identified as key reasons behind the growing numbers of small businesses choosing to give up fixed business premises. Nearly a quarter (24 per cent) of those questioned revealed they now spend up to 50 per cent of their time away from the office and over half (57 per cent) said that new technologies like wireless internet and mobile broadband had influenced their decision not to have a fixed business premises.

Simon Devonshire, head of O2 SME marketing, said: "Developments in technology and mobile communications are enabling businesses to be flexible and respond very quickly to changes in the market place. Getting rid of the office relieves many small businesses of a major overhead very quickly and shows a rapid response to current economic pressures."

The lack of a fixed office premises was also identified as having little impact on the customer relationship as increasing numbers of customers grow receptive to the benefits of new technologies. Eight out of ten small businesses operating from home admitted that their customers were not concerned about their lack of an official office premises.

This is very happy reading for us here at Enterprise Nation as it's yet more proof that the home is the best start-up and business location.