Research by PC World Business shows that the average business employing four people now costs just £4,000 to get up and running, down from £10,000 in the year 2000.
It said IT equipment - usually the most expensive initial outlay - had "plummented" in price, but so had furniture and office supplies. The rapid decline in the cost of computers and related equipment means that entrepreneurs no longer need large loans or investment, it added.
Based on the average four-person business requiring computers, office software, fax, photocopier, printer, network server, cables, telephones, desks, chairs and basic office stationery, a start-up might only need to fork out £3,600 initially.
Added to this legal fees and the first month's rent, it adds up to around £4,000 said PC World Business.
By comparison, the average start up cost for a four-person company with similar equipment in 2002 was more than £7,000; in 2000 it was nearly £10,000.
Read related items on: