Home-based businesses reaping rewards

UK businesses being run from the sheds and back gardens are to contribute £8 billion to the UK economy this year, up from £6 billion in 2010, new research has shown.

There are up to 100,000 businesses being run from homes across the UK, according to shedworking.co.uk, which carried out research for supermarket retailer ASDA.

16% of home-based entrepreneurs saw a turnover of between £100k-150k last year, with a further 7.9% seeing earnings of over £200k.

Almost a quarter employ more than one person and one in 20 have a workforce of five or more employees.

And many are looking to grow this year, with 13.5% predicting to see an increase in turnover of 20% or more.

A spokesman for ASDA said of the research, "The low cost of starting up a business means that many households are pursuing the entrepreneurial dream. With the value of the back garden economy reaching an amazing £8 billion, home-based businesses are now lending a whole new meaning to the term 'home economics'.