Home-grown success: The hidden support network behind startups generating half a million in turnover

Entrepreneurs living in shared households are getting a head start due to their hidden support network, with parents, flatmates, and other family members providing vital services in the early stages of a startup.

Over half (51%) of the UK’s small businesses start in shared households, with them going on to generate an average revenue of £530,451, and one in seven (14%) even making over £1 million, according to new research from Starling Bank of 1,500 small and medium sized (SME) business founders.﹡

In order to help these startups grow, this support network contributes an average of 11 hours of free labour each week. This accumulates to more than £7,200 of unpaid support a year1, a vital saving to startups.

The research found that living in a shared household is a savvy choice for budding entrepreneurs. Saving on overheads and rent is just the start, with founders also getting assistance on packing orders and making deliveries (29%) and leeway on household responsibilities (27%). Support isn’t just financial, it’s emotional too, with 43% of founders saying those they lived with played a key role in launching and helping their business survive. More than a third (36%) said they couldn’t have succeeded without the people they lived with.

Parents provide vital support to their entrepreneurial children

Alongside an average of nine hours of unpaid labour per week, parents are providing their founder children with financial support key to the development of a startup. Seven in ten founders who lived with their parents or guardian received direct financial support from them, averaging £9,763. This, alongside the wider value of a free workspace, utilities and meals amounts to nearly £23,000 worth of support.

Parental support wasn’t just financial. Two fifths (42%) of founders say their parents provided financial guidance, business advice, or shared lessons from their own experiences running a business, while a third (29%) of founders say their parents provided emotional encouragement or moral support during difficult periods.
Managing a small business in a unique environment

Two fifths (44%) experienced mild friction whilst living with friends and family, with the most common causes being heavy use of shared Wi-Fi for business calls and downloads (34%), clients, suppliers and deliveries coming to the home (34%), and increased utility bills (32%).

But acknowledging the support made, nearly three-quarters (74%) went on to repay family members who helped them get started. A third (33%) have treated them to a holiday or experience, one in five (20%) have contributed towards their mortgage, while 21% now provide them with a regular allowance funded through their business.

Not everyone expected financial repayment. Nearly four in 10 (39%) taught their household members online banking and digital money management skills, while 36% helped them use smartphones confidently and 36% introduced them to everyday technology, software and AI tools.
The launchpad code of conduct

More than a quarter (28%) of founders say they would benefit from additional money management support – particularly around tax obligations (38%), budgeting and forecasting (35%), and improving visibility over cash flow and transactions (30%).

To help founders navigate the realities of launching a business from home, Starling Bank has partnered with money columnist and author, Bola Sol, to share her top tips on building healthy financial habits and routines for long-term success when launching a business. Bola is a certified Financial Adviser (Diploma in Financial Advisement), a money columnist, and author.

Starling’s digital banking tools also help entrepreneurs stay in control of their finances, with features including real-time spending insights, Spaces for tax and business costs, and in-app payment notifications that make managing cash flow simpler as their business grows.

Bola Sol, Financial Expert, said: “Some of the most successful businesses I’ve come across didn’t start in an office, they started at home, with support from their loved ones. That support is real capital, even if it never shows up in the accounts. I started my first business in my childhood bedroom at my mum’s house in Brixton. My advice to founders is to start as you mean to go on: keep your business money separate from personal money from day one, set money aside for tax and build good money habits early so that your business can stand on its own. And, once you’ve got there, think about how you can thank those who helped you along the way!”

Sami Kade, Banking Product Director at Starling Bank, said: “People often think that starting a business needs expensive offices and large upfront investment, but our research shows that some of the UK’s most successful businesses begin much closer to home. Entrepreneurs can be good with money by keeping overheads low while also making the most of the support from friends and family. Pairing this with good financial habits and the right digital tools to manage cash flow and automate admin, it can provide business owners with the right route for success.”