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An expert has emphasised that there are numerous benefits of beginning a business start-up at home.
However, John DGroot, director of the StartupCo, explained that technology is "vital" for home-based businesses to allow them to communicate with customers, suppliers and employees.
He said: "There are some cost advantages and it is also a huge advantage to the environment, without necessarily detracting from the potential for the business to grow.
"Running your business from home will reduce the amount of travel, which is an important issue, and it will avoid the problems of duplicated premises
[and] people spending lots of time travelling to and from work."
Mr DGroot explained that modern technology allows people to work as a "team" without them leaving their own homes.
There are elements of company legislation which have to be taken into account when setting up a home-based business.
As Mr DGroot highlighted, entrepreneurs need to ensure they adhere to the appropriate rules and regulations set out by their local authority.
According to the most recent research by the Office of National Statistics (2005) SMEs account for more than half of the employment (58.7 per cent) and turnover (51.1 per cent) in the UK.
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