The number of British entrepreneurs opting to work from home is steadily increasing, with one in five small companies now operating without an office premises.

Figures revealed at this month’s Entrepreneur Country Forum show that pioneering business people in the UK are driving the adoption of new technology and new ways of working.

94 per cent of entrepreneurial companies say they are using free or low-cost technology and services, and 85 per cent say they have adopted new ways of working, to help them to grow during the difficult economic times.

According to the research, based on over 500 fast-growth organisations with fewer than 100 employees, sales and marketing, IT and customer services have benefited most from new free and low cost technologies and programmes. These including leading names such as LinkedIn, Skype, Freeware and Twitter.

Founder and chief executive of Entrepreneur Country and Ariadne Capital, Julie Meyer, said “Necessity is the mother invention, and entrepreneurs are inventive people. Although we live in straightened times, those building businesses in this environment are adopting new technologies, services and ways of working as a way to survive and thrive.”

Only half of entrepreneurial businesses now rent their own office premises, with one in five conducting the majority of their operations from home offices, happy for staff to work from home or on the move. Hotel foyers, coffee shops and private membership clubs tend to operate as meeting and working locations when required.