Small businesses can save vast amounts of time and money by setting up their business premises at home if they use the right IT support and computer technology to help them.

Technology has become a vital component in all start-up and small business success as entrepreneurs increasingly begin to focus their efforts online as opposed to on the high street, but the costs of business premises can often be a barrier to those hoping to start their own companies.

John D'Groot, director of business support firm StartupCo, has suggested that by using modern technological techniques and finding suitable IT support, small start-ups can negotiate the problem of finding the right premises by setting up their business at home.

"There are a number of advantages when setting up a business from home. There are some cost advantages and it is also a huge advantage to the environment, without necessarily detracting from the potential for the business to grow," he said.

"For many businesses [technology] is absolutely vital in terms of communicating with other people in the business but also to communicate with people outside the business, like customers and suppliers."

The most recent research released by the Office of National Statistics, in 2005, found that small businesses now account for more than half the UK's employment figures and a similar amount of its total revenue turnover.

In a recent survey of SMEs for Connect, the two most important benefits of outsourcing were 'guaranteed response times' and 'allowing in-house IT staff to concentrate on more strategic issues'