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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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Despite global economic headwinds, The Insights Group Limited delivered a robust performance in 2024/25. Figures filed at Companies House show turnover of £88.9M and operating profit of £12.3M. In addition to challenging trading conditions, profit performance reflected the Group’s decision to invest in innovative product extensions and new technology platforms.


Over the past year, Insights has advanced its purpose-led strategy, investing in world-class “human-skills” learning experiences and technology-enabled solutions that empower individuals, teams, and leaders worldwide.


Headquartered in Dundee, Scotland, and operating across 16 global offices, Insights Learning and Development partners with leading organisations such as Microsoft, Google and Expedia. Insights Discovery, our colourful personality model, is at the core of our work and continues to transform workplaces by fostering self-awareness and collaboration.


Looking ahead, The Insights Group will continue to invest in its 18,000+ practitioner community, digital enabling technologies, and charitable initiatives through The Insights Foundation, spreading the Gift of Discovery to underprivileged communities worldwide.


Andy Lothian, Chief Executive Officer, Insights Group commented:

“This has been a year of building for tomorrow. We chose to prioritise investment over short term gain—backing the innovation, platforms and product evolutions that will serve our customers for years to come. We continue to invest in our people so they can do their best work and to support and build our community worldwide."

"The long term outcome is a stronger Insights, better able to deliver our purpose and to amplify our impact in the communities we serve both through our work and our ongoing support of the Insights Foundation.”


Fiona Logan, Chief Executive Officer, Insights Learning and Development commented:


“These results demonstrate our close partnerships with our customers and are testimony to the sustained dedication and creativity of our people, and our Insights Discovery practitioners, whose efforts are central to delivering our purpose and business goals."


“This year, we made a conscious and bold decision to invest in our future—channelling significant resources into our core offerings, innovation, technology, and our people. While our revenue and profit reflect the scale of this commitment, they also tell a story of transformation: we have laid the foundations for the next generation of our products, including pioneering work on Insights Discovery for Microsoft Teams, enabling APIs to the market, and the evolution of our core offerings."

“We have launched our the ‘gift of time’ initiative alongside our gift of Discovery, encouraging our people and our practitioner community to deliver our purpose beyond the confines of their roles, and our focus on strategic capability building have empowered colleagues to learn, grow, and innovate. These investments are not just about today, but about equipping Insights for long-term success and resilience."

“We knew this would be a year of transition, and I am proud of the intentional choices we have made. Our results reflect a period of building, investing in our next phase of growth, which will enable us to deliver even greater value to our customers and community in the years ahead.”

 

Insights Learning and Development recently launched Insights Discovery for Microsoft Teams as a digital complement to their flagship product, Insights Discovery. The Insights Group has also set ambitious carbon staff volunteering targets to drive meaningful change throughout the business and it’s wider community.




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