Over half of all UK small firms are run from the home of the business owner, according to new analysis from Direct Line for Business.
The findings - based on data from the Office for National Statistics - show that there are currently 2.5 million home-based business owners in the UK, representing just over half (52 percent) of the total number of UK SMEs.
These home-based business owners now account for eight percent of the UK's total workforce.
The analysis by DL4B shows some significant regional variations. The South West and South East have the highest concentration of home-based business owners, representing a tenth of the total workforce in both regions.
Men are more than twice as likely as women to run their own business from home, with 1.7 million male home business owners across the country, compared to around 818,000 female home business owners.
Jazz Gakhal, head of Direct Line for Business, said: "Self-employment has been on the rise for several years and our research shows that a great number of these people work for themselves from home."
The findings also show that 74 percent of home businesses keep all their stock at home, worth £4,388 on average.
With many people seeking a better work-life balance, a number of sectors have seen an increase in newly self-employed, including e-commerce, travel, marketing, recruitment and legal. Other key trades identified by DL4B are catering, photography, hairdressing and arts and crafts.