The current economic climate is acting as a spur for thousands of people to become their own boss and to start a business from home, according to a new report by Enterprise Nation and BT.

The 2008 Home Business Report, launched as part of Small Business Week 2008, highlights a 16 per cent rise over the last year in the number of businesses being run from home. There are now more than 2.5 million home businesses, accounting for more than half (53 per cent) of the 4.7 million small and medium sized enterprises in the UK.

Home based businesses are also bucking the trend when it comes to confidence in their prospects during the financial crisis. They are buoyantly optimistic about beating the adverse economic conditions, with 72 per cent planning to win new customers over the next six months, two thirds (66 per cent) planning to increase turnover and more than half (58 per cent) developing new products and services.

The freedom to make their own decisions is the most popular reason (33 per cent) why home based business people enjoy being their own boss, closely followed by the benefits of a better work/life balance (24 per cent).

The use of technology is a critical factor in the start up and growth of home businesses - a view held by 82 per cent of business owners, with more than half of them (52 per cent) spending between 500 to 1,000 on Information Technology each year.

Home business owners view their spending on technology as a valuable return on investment as it helps to keep their costs low and their sales and productivity high.

Small businesses and entrepreneurs in the UK are crying out for mentoring and coaching advice, according to research released from Yell.com.

Undoubtedly fuelled by worries about the current economic climate and the future of their careers and businesses, people are increasingly turning to the internet to find mentoring, support and business advice. Throughout the last three months, searches for mentoring and coaching on Yell.com have increased by 116 per cent above the monthly average for 2008.

A competition offering cash rewards for the most inspiring business ideas have been launched in Glasgow.

Four awards of 20,000, plus three months support worth 5,000, are up for grabs in the 2008-09 Glasgow Business Challenge Fund. Run by Glasgow City Council, the fund is open to small and medium-sized firms from the city (maximum of 250 employees) that have been trading for less than three years.

Interested firms are asked to submit a business plan of no more than 40 pages outlining their entrepreneurial spirit, innovation, and their plans for future growth. Shortlisted finalists will then get to pitch their ideas before a judging panel.

Companies have three chances to enter the competition, with the following deadlines set:

30 October 2008.
30 January 2009.
30 March 2009.

Two winners will be chosen from the October round, with one each from the January and March contests.

A recent survey reveals that more people are starting a business to strengthen their financial security despite the current economic climate.

The research was carried out by business consultants www.getsetforbusiness.com who surveyed businesses established for less than six months on their motivations for becoming self employed. Over 40% of respondents indicated their main reason was the fear of redundancy from employment and the subsequent removal of financial security.

Over 200 business owners were questioned and other motivations included the flexibility of working from home and not having to answer to bosses.

Recent figures released by Companies House and the British Banking Association show further signs of business confidence. Over 27,000 new Limited Companies were incorporated in England and Wales in July 2008. In addition, the latest figures (Q3 2007) for the leading high street banks providing small business services show that:

Overdraft borrowing is £9.0 billion, a fall of one per cent over the year, reflecting a lower reliance on temporary, cash flow finance.
Term lending stands at £39.9 billion, having grown nine per cent over the 12 months to September.
Deposits total £48.8 billion, having increased by eight per cent over the 12 months to September.
Over 585,000 small businesses established new banking relationships in the latest 12 months.

GetSet for Business has actually seen a 20% rise in the number of businesses seeking support in the last six months compared to the same period last year.

Managing Director, Kate Beever, commented

Our customers are clearly eager to gain the right support for their business from the outset. The credit crunch has actually encouraged business owners to plan ahead more significantly to prepare for a potential slump in their market. GetSet for Business gives users the confidence, knowledge and direction to consider and prepare for every area of the business and produce an online, bespoke business plan

Established businesses can also earn revenue through the GetSet affiliate scheme. For more information contact the sales team on 0161 286 3001 or visit www.getsetforbusiness.com.

The widespread popularity of TV shows looking at the world of business and start-up companies is helping to motivate more people to form their own small business, according to a new report.

Dragon’s Den and the Apprentice have both proved to be consistent ratings hits for the past few years, resulting in a range of spin-off shows, but as well as being popular research from Natwest suggests they are giving many more people to courage to start their own company.

The poll found that the equivalent of 17 million Brits have an idea for their company, with 30 per cent serious about making a go of it.

Furthermore, a fifth of the young entrepreneurs who have gone into business in the last five years said their main motivation was watching a business reality TV show.

“Whilst it’s encouraging that TV programmes can inspire an army of armchair entrepreneurs into action, they only really scratch the surface of what it takes to run a successful business,” said Steve Pateman from Natwest.

“Although over half (52 per cent) aren’t confident they have the skills and financial know-how to get started straight away…these initial hurdles needn’t be a barrier to getting a good business idea off the ground,” he added.

It’s official - more people are starting a new business in the UK than any other European city. According to the Global Entreprenuership Monitor, whilst other European countries have seen a fall in entrepreneurship, the UK is going from strength to strength. Business support organisations can help setup, regsiter a limited company and advise on a variety of issues you face when starting a new business.

If you are looking to set up a limited company there is an easy and affordable solution available through Trade Solutions Business Consultancy.

Just complete one simple application form, and for just £99 they will do the rest. Visit the website for more information:
www.tradesolutions.org.uk

BUSINESS PLANNING FAILURE THREATENS FUTURE OF UK SME’S

54% of businesses have no written business plan and are endangering their future prosperity and survival, according to research carried out by PKF Accountants.

While 45% of businesses claimed to be working to a plan, 46% said they had a strategy but no plan, and 9% described themselves as having no plan at all. The most common reason given for having no plan was that the ‘owner makes the decisions’ (25%), followed by ‘no time to formulate a plan’, ‘just moving the business forward’ and that ‘the company is reactive’ – each on 17%.

Encouragingly, 65% of the companies interviewed said they were projecting growth of up to 25% in 2007 while a further 23% anticipate even greater growth. Nearly a third of companies (31%) said they were planning to make one or more acquisition in the year ahead with the majority of these (66%) looking to acquire a competitor.

PKF Corporate Finance Partner, Mark Lister welcomed the level of confidence among SMEs but sounded a note of caution. “The research findings suggest that businesses are riding the wave of relative economic prosperity in the UK but many appear to be forgetting some business basics“, he said.

“Businesses need to balance their drive for growth with ensuring that strategies for tackling tougher times are in place. Recent interest rate rises should sound a warning that favourable economic conditions should not be taken for granted; Managing Directors need to plan for the future so that their businesses are capable of surviving and thriving during leaner periods too.”

“Effective planning is critical when building a successful business and, while companies can succeed without proper planning, the most effective are generally those that are aware of the opportunities and threats in the marketplace so that they can plan how to achieve targets and monitor their progress. Growth is generally good for business but companies need to understand the implications so that they don’t create ‘boom and bust’ situations.”