'Mumpreneurs' Could Be Lifeline To Recovery

Companies run by mothers contribute around £7bn a year to the economy but there are calls for the Chancellor to introduce measures to make it easier to start a business from home.

It has been five years since the depths of the financial crash and still the key to kick-starting growth eludes the coalition Government.

The British economy started 2013 with zero momentum, but could helping mums open businesses help get Britain growing again?

According to StartUp Britain , a group that supports entrepreneurs, 60% of small businesses are started from home.

And a growing number of those are being started by women who have left the workforce to have, or care for, their children.

Julia Hunter is a former City bond trader, and mum. Starting a family prompted her to start a business.

"I was looking to start my own business rather than work for somebody else purely because of the family side of things. It is important to me to just be around."

Mum-run companies are contributing a significant amount to the economy already.

According to Mumpreneur UK , there are 300,000 mum-run companies in the UK today.

As a group, they add about £7.4bn a year to the economy. Yet the average startup cash they require is only £500.

That’s a low-risk, high-reward ratio that the Chancellor would admire.

Ms Hunter says British business needs more support from the Chancellor. She believes cutting VAT would be one way to encourage enterprise in the upcoming Budget.

Becky Jones from StartUp Britain says big banks and established companies should be encouraged more to support smaller startups.

She told Sky News: "Giving them support at the early stage can be a complete game changer for the life of a small business."

After all, these are the firms that will hire, produce, sell and export - at each stage contributing to the tax that the Government so desperately needs to slowly pay down debt.