AN EXTRA £4.27 billion in revenue could be generated for the economy across Southampton and the South if home businesses could grow and move into commercial premises.

This potential increase in revenue for businesses looking to grow is highest in the South, followed by the North (£3.09 billion) and London (£2.76 billion).

The figures come from a new report, Unlocking the UK’s Home Business Potential, from Vonage in partnership with the Cebr and YouGov, which surveyed more than 500 home-based businesses.

In the South, 20 per cent of businesses surveyed responded that the high cost of commercial office space is preventing them from growing out of the home.

The report was published this week by Vonage, a provider of cloud communications for business.

Alongside detailed analysis of the data from the Cebr, the report features contributions and insight from business leaders including Mike Cherry, chairman, Federation of Small Businesses, Ella D’Amato, of Notonthehighstreet.com, Anya Hindmarch, handbag designer, and Lord Bilimoria CBE, founder of Cobra Beer.

Simon Burckhardt, managing director at Vonage UK, said: “The home businesses of today are the pipeline for tomorrow’s larger businesses, therefore it’s crucial to identify the challenges and obstacles preventing them from stepping up.

“More needs to be done to identify the challenges and obstacles preventing home businesses from stepping up, and importantly how the wider business community and government can better support them.

“It is encouraging that home-based enterprises in the South are still enjoying strong growth at this critical juncture for the country as plans are put in place for our exit from the European Union.”

Samantha Acton, founder of cleaning business Domestic Angels, has experienced first-hand the challenges of growing her own home business.

Her company has grown from a handful of clients in 2002 to one with 20 employees, that supports 138 clients and provides more than 1,000 hours of services every month.

She said: “As I run Domestic Angels as a franchise from home, at the moment we are not looking to move into commercial premises. Before taking the decision to move to a franchise model, I was searching to find the right space that would allow flexibility to accommodate for peaks and dips in demand.

“It was surprisingly difficult to find affordable premises that allows for the unpredictable levels of revenue in the first few years of starting a business.”