Office work losing its appeal 

12 August 2008

Small firms are abandoning the traditional office in favour of home working, a new survey has found.

A poll carried out by O2 of over 500 small businesses revealed that 13 per cent of respondents have opted not to renew the leases on their offices since the start of the year, preferring instead to work from home or remotely.

Of those still working from office premises, six out of ten are giving serious consideration to leaving before the end of the year.

The decision to downsize from existing business premises was made in 62 per cent of cases as a means of reducing costs.

Worries over the credit crunch and an uncertain economic future also played a large part in deterring businesses from committing themselves to fixed rental agreements.

The increase in flexible working practices and the greater efficiency of mobile technologies such as faster broadband speeds, virtual networks and wireless internet access have meant that many small firms now find it easier to operate away from the office desk.

It is thought that as many as 400,000 small businesses have swapped the office for home since the onset of the credit crunch.

Simon Devonshire, who is head of business marketing at O2, said: “Getting rid of the office relieves many small businesses of a major overhead very quickly and shows a rapid response to current economic pressures.”

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