The results, collected by Serviced Offices International, show 56.2 per cent of business owners believe prospective customers are hesitant to work with a home-based business.

Entrepreneur Beth Barclay of Dolls Point can identify with these findings. Ms Barclay had her own business as an executive recruiter and rented an office in the city.

But with the global economy in trouble, she began to question the cost of hiring a city base. Instead, she started to use the services of a Serviced Offices International virtual office which ensures business calls are answered. She said the transition from actual to virtual office was seamless.

"The flexibility that a home-based office gives you makes it so easy,'' she said.

About this time Ms Barclay decided to return to her first passion of working as a mothercraft nurse, helping mums regain their confidence. "I trained in it 30 years ago and remained upskilled,'' she said.

She said helping mums with new babies in their own homes was a recession-proof business. Ms Barclay is looking at expanding with the help of the virtual office and a BlackBerry.

Details: Beth Barclay Consulting at

bbc@pacific.net.au, 0416278635.

Serviced Offices International:

www.serviced.com.au.