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Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom



Britain's entrepreneurs are increasingly choosing to run businesses from home as rising commercial costs, greater flexibility and changing attitudes towards work reshape the country's small business landscape.


New research from Dunster House, garden building specialists, found that almost half (46%) of home business owners now rely on their venture as their primary source of income, while a further 28% say it provides a significant financial contribution to their household finances.


The findings suggest that home businesses have evolved far beyond side hustles, with many entrepreneurs deliberately building long-term businesses from spare bedrooms, garages, garden rooms, and other home workspaces.


When asked what motivated them to start a home-based business, respondents overwhelmingly cited lifestyle benefits over financial necessity, with nearly half saying that a better work-life balance was their top motivator.


Why are Brits choosing to run businesses from home?


Motivation

% of respondents

Better work-life balance

47%

Wanted to work remotely or from home

36%

Wanted more flexibility

36%

Turned a hobby or passion into a business

32%

Wanted to leave their job

31%

Wanted to spend more time with family

29%

Started a side hustle to earn additional income

22%

Renting commercial space was too expensive

14%

COVID-19 prompted a change in direction

12%


Although the data shows that quality-of-life factors dominate, cost remains an important consideration. Commercial property rents in the UK have risen by an average of 3.1% annually as of mid-2026, according to the Carter Jonas Commercial Market Outlook and with this rise, many entrepreneurs are choosing to invest in their own properties rather than commit to expensive premises.


Christopher Murphy MBE, founder of Dunster House, said:

"For many entrepreneurs, running a business from home removes one of the biggest barriers to getting started, the cost of commercial premises. As rents and operating costs continue to rise, more people are realising they don't need a high street unit or office lease to build a successful business. Home working has made entrepreneurship more accessible, allowing people to invest in growing their business rather than covering overheads."

55% regularly work evenings and weekends as home businesses blur work-life boundaries


Despite the flexibility and freedom, there are some payoffs that are being experienced by those who do business out of their home. Many entrepreneurs admit that separating work and home life can be difficult.


More than half (55%) say they regularly work evenings and weekends, while almost half (48%) have experienced loneliness or isolation because of running a business from home.


Meanwhile, one in three (33%) have had customers unexpectedly turn up at their home, highlighting the difficulties many face in maintaining professional boundaries. The findings also reveal the growing pressure that businesses can place on domestic spaces, with 58% saying their enterprise has taken over parts of their personal living environment.


To address these challenges, many entrepreneurs are investing heavily in dedicated workspaces. Nearly two-thirds (62%) have already spent money improving their workspace, with respondents investing an average of £5,170 into creating environments better suited to running a business.


When asked what improvements they would make if budget were no obstacle, better broadband and Wi-Fi (34%), improved heating and air conditioning (34%), and a fully insulated garden office (32%) topped the list.

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Thanks to the inspirational work of International Women's Group (IWG), a women-led voluntary organisation based in the St. Matthew’s Centre in Possilpark, women and children from a community of migrants, refugees, and others living in social isolation in Glasgow enjoyed a day of bonding, exploration, and quality family time during a special summer trip to Five Sisters Zoo.


Many of the women IWG support face financial difficulties, social isolation, and limited access to leisure activities, making this trip invaluable for families who rarely have opportunities for such outings. The visit allowed participants to explore wildlife, experience nature, and create lasting memories in a safe and inclusive environment that encouraged social inclusion within Glasgow's diverse community.


The zoo outing represented something particularly special as it was chosen by the women themselves, reflecting their desire to engage in an educational and enjoyable outdoor activity with their children.




Meriem Timizar, Project Co-ordinator at International Women's Group, commented:

"We wanted to offer mums and their children a positive and refreshing experience, and an opportunity to break from routine, enjoy nature, and return to school after the Bank Holiday with renewed energy and spirit. Despite the weather, everyone had a great time. Thank you again the Trust for making it happen with their generous funding; it truly made a difference."

The Group supports diverse women in Scotland through education, community events, and equality promotion. The charity delivers workshops and English for Speakers of Other Languages classes to build skills and confidence, helping women overcome isolation and poverty whilst creating volunteering opportunities that empower women to integrate into their new surroundings.


Through counselling services, advocacy, support for housing and immigration matters, and mental health workshops, IWG provides comprehensive assistance to help women navigate challenges of life in a new country and thrive in their communities.


The Allied Vehicles Charitable Trust donated £1,600 in funding to make this adventure accessible to all families, covering essential costs including bus transportation, park entrance fees, and sandwiches for the group. This support ensured that the women and their children could participate regardless of their financial circumstances.


The trip provided a much-needed break for families whilst strengthening the community connections and wellbeing that can help diverse women build a stronger foundation for their futures in Scotland.

"It’s wonderful to see so many women and children from diverse backgrounds sharing joy and making memories together. The Allied Vehicles Charitable Trust was set up to make a difference in people’s lives and supporting projects like International Women’s Group, that bring communities together and create positive experiences for families, is how we achieve that.”

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