Start-ups 'shunning traditional offices'

News Article - 22 April 2008
Category:

A number of new business start-ups are doing so without the use of a traditional office, making the most of technology to run their venture, according to the National Federation of Enterprise Agencies (NFEA).

The organisation has said that many of the new businesses it sees starting can be run using a mobile phone and email, suggesting the need for such traditional premises is not apparent. However, this is not just restricted to new firms, the NFEA suggests.

"It should also be said that working away from a traditional office is not just an option limited to start-up businesses; many established and successful businesses are operating in this way," George Derbyshire, chief executive of the NFEA, said.

Mr Derbyshire also pointed to the trend that has seen a number of firms making the most of virtualised offices, technology that can "provide the appearance of a much larger organisation".

Firms embracing the latest technology in this way will no doubt want to ensure that they have the relevant accounting software in place, to ensure their home-based operation works successfully.

According to the website Flexibility, the number of homeworkers in the UK increased by 11 per cent in 2005, following growth of nine per cent and ten per cent in 1997 and 2001 respectively.

Article keywords: Many businesses in Europe are worried that they will be investigated by regulators within the next year.<br/><br/>According to a study by law firm DLA Piper, 40 per cent of companies have expressed concern that professionals will be drafted in to examine their practices, Accountancy magazine reports.<br/><br/>These companies are not adequately managing the risk factor which comes with having a business, the survey suggests, with many firms having a &quot;blind spot&quot; with regard to ensuring mechanisms are in place to protect their reputations.<br/><br/>Some 57 per cent of respondents think that it is likely that their business will be investigated in the next 12 months, with 76 per cent stating that they believe the risk of receiving criminal penalties is set to grow over the next five years.<br/><br/>Neil Gerrard, DLA Piper's global head of regulatory and government affairs, said: &quot;Directors are facing extradition, imprisonment and fines. Companies need to be aware of and manage this risk. They owe it to themselves and their shareholders.&quot;<br/><br/>Website SecurityPark.net advises firms not to take risks with their IT management, by making sure they always capture all critical information and do not allow for unauthorised access to data.<br/>

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »