Cottage industries: Why so many Britons are working from home, and where

Cottage industries: Why so many Britons are working from home, and where

Nov 9th 2013 |From the print edition

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IN THEIR medieval heyday places such as Moreton-in-Marsh, a market town in the Cotswolds, hummed with the sound of spinning wheels in household workshops. War and industrialisation killed off that home-grown industry. But now other ones are growing.Between 2001 and 2011 the proportion of people working at or from home went up throughout England and Wales, but particularly steeply in places like the Cotswolds (see map). The share of home workers has swelled even more quickly than the proportion of people taking public transport to work; meanwhile ever fewer people drive to factories and offices.

Whereas 678,000 people worked mainly at home in 2001, over 1m did so last year. The proportion of people who work in many different places but use their home as a base has risen too, to 8.4%. Apart from a dip in 2010, during the long economic slump, the rise has been inexorable.

Many farmers work at home, and the highest concentrations of home workers are still in deeply rural regions. But the biggest increases are not found in the most remote areas. They are, rather, in pretty parts of the countryside that are near to big towns and cities, such as Gloucestershire, Surrey and Worcestershire. Sleepy market towns in the Cotswolds are now home to start-ups selling organic clothes and environmentally friendly cleaning products. In Waverley, a district in Surrey, headhunters and marketing executives are setting up businesses, according to Adam Taylor-Smith, a local councillor.

Many areas with the largest increases have good transport links: parts of Waverley are only a 45-minute train journey to London. If home-based company bosses need to meet clients in the capital they can do so easily. Good connections also mean the Cotswolds are home to a large number of bored housewives, suggests Sarah-Jane Menato, who runs business courses in Gloucestershire. While their husbands push paper in London, they work on handblown glasswork or embroidery, selling their work in pop-up shops or online.

Fast internet connections make all this easier. By 2016 all of Gloucestershire should have access to a broadband connection, says Adele Clarkson of GFirst, the region’s local enterprise partnership (a body composed of local councillors and businesses). Councils in Surrey are also pushing for speedier internet access, says Mr Taylor-Smith. This makes it easier for people to set up businesses from their kitchen, or to work from home one or two days a week.

Some doubt that the trend will continue at such a pace. Grants to rural businesses have been cut back, complains Ms Menato. And the economy is at last recovering. Stronger job growth will provide people with more opportunities to go back to conventional office drudgery. Still, the rise of home working hints at a profound change, suggests Alan Felstead, an academic at Cardiff University. Businesses no longer depend on central locations to be successful, and their workers are happy to be more flexible. British towns that want to attract industry may in future need better internet access and pretty houses rather than more offices.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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