Manchester, Bolton, Preston, Stockport, Wigan, Oldham and Rossendale Valley have all been named in a list of the nation's top 50 home business hotspots, according to BT.
A research report by Enterprise Nation - itself a home-based business - says the current economic climate is a spur to growth as more people seek a new income at minimal cost.
It discovered that more than 50 per cent of the UK's 2.5m home-based businesses are developing new products and services. Two-thirds expect to increase turnover in the next six months.
A spare room or bedroom was the most common place for a home office, but 18 per cent use a garage or garden shed.
Mike Blackburn, BT's north west regional director, said: "The growth of home businesses, despite the economic downturn is a major business success story for the region.
"Technology - such as broadband - has made it easier and more cost-effective than ever before to start a business in your home."
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