The current difficult economic environment has prompted more entrepreneurs to set up their businesses from home, a new survey has claimed.

According to the Home Business Report, published by Enterprise Nation and BT, the proportion of owners running home-based businesses has climbed by 16 per cent in the last year.

- The number of home businesses now stands at 2.5 million.

Business owners who work from home, the report said, are bullish about the future. Almost three-quarters of home-based businesses are aiming to broaden their customer base over the next six months, two thirds anticipate an increase in turnover, and a half are developing new products and services.

Emma Jones, the founder of Enterprise Nation, said that managing a business from home helps to make for a more dynamic economy and to reduce such environmental problems as overcrowded roads.

Ms Jones added that more needs to be done to support home-based enterprises: “The report calls for action to encourage home businesses, including asking the government to look at the economic, environmental and social benefits of homeworking.

“It asks Regional Development Agencies to include home business targets in Regional Economic Strategies, calling for changes to the planning system, and local authorities to invest in home business hubs and networking facilities, and to give out clear information about planning permission and business rates.”