Research from Direct Line - who provide business insurance and products and services for professional small and micro-businesses and sole traders - have found that 50 per cent of office, micro-business owners and sole traders who have changed their location or adopted hybrid working since the start of the pandemic, have witnessed a positive impact on their turnover.

The research has found that 25 per cent of office and professional micro-business owners and sole traders have changed their location or implemented hybrid working in an effort to reduce the risk of infection - as reported by 13 per cent; saving money on renting an office - as reported by 7 per cent and a confidence in the ability to work remotely - reported by 8 per cent.

The benefits found were:

Working from home benefit (Proportion of small/micro-business owners and sole traders)

• No travel costs (60 per cent)
• More flexible hours (58 per cent)
• Better work/life balance (57 per cent)
• Safer during Covid (9 52 per cent)
• No office space costs (45 per cent)
• Higher productivity (29 per cent)
• Claim expenses for using home (26 per cent)
• Easier childcare (11 per cent)

Apart from the rise in turnover, the change of location and hybrid working resulted in 61 per cent of business owners reporting that they had seen an improvement in their wellbeing and that they were happier at work.

Hybrid working is also influencing business owner plans with 83 per cent stating that in future they intend to have their home as their business registered address.

Some office and professional micro-business owners and sole traders, though, could see that there were some benefits to working in an office.

• 44 per cent felt that working in the office creates a clearer separation between professional and personal lives
• 33 per cent believe it provides better social connections
• 28 per cent feel that it leads to easier meetings and collaboration
• 22 per cent feel it boosts productivity

Only 7 per cent of business owners were concerned about hybrid working but were more worried about:

• The impact on customer demand - 44 per cent
• Tax increases - 33 per cent
• Maintaining/increasing growth - 27 per cent
• Increase in IT requirements - 21 per cent
• Brexit - 19 per cent
• Scaling up their business -12 per cent

Jane Morgan, Product Manager at Direct Line business insurance advised:

“Many office and professional micro-businesses and sole traders have seen positive benefits from flexible working, ranging from improved wellbeing to better turnover, which is great to see. This is influencing how they see their business operating in the future.

As these business owners plan ahead, they should consider the importance of having the right insurance arrangements in place, so that they are prepared to deal with the consequences of unforeseen developments and crises.”