The figures, from the Home Business Report drawn up by Enterprise Nation and BT, found that home is by far the most popular place to start a business.

Home-based businesses account for 28% of employment and have a combined turnover of more than £364 billion annually, with young people, mums and the over-50s responsible for the highest growth.

The report put forward ten points to improve life for home-based businesses, including financial incentives and the involvement of the Government and enterprise agencies in promoting and marketing small firms.