Home-based businesses comprise a significant proportion of the small-business sector and an increasing proportion of start-ups – but their importance is not being recognised by policymakers, according to academics.

Researchers at the University of Strathclyde found that more than a third of all small UK businesses operated from home. A significant minority were substantial, with 10 per cent having annual sales of more than £250,000 ($496,000) and employing at least 10 people.