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The guidance, produced by the Chartered Institute of Housing (CIH), was launched by Housing Minister Grant Shapps at a Small Business Summit.
Mr Shapps said: "I want all social tenants with the ambition, drive and vision to set up their own businesses to be given all the help they need to do so. But on far too many occasions their efforts are thwarted at the first hurdle. Without the money to get their own new premises, tenants too often feel unable to get their projects off the ground in their own homes as any homeowner would normally do.
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"Tenants should have the same opportunities as anyone else, and landlords have the key to unlocking this untapped entrepreneurial talent. I want them to get the message out loud and clear to their residents that wherever possible, and in the majority of cases, they will be able to set up and run their new businesses from home.
"Of course, councils and housing associations must consider the possible impact on neighbours that a new company in the area could make. But I urge them to use their common sense and, where a tenant is making a reasonable request to start their career at home, that it be granted."
Sarah Webb, CIH Chief Executive, said: "Only relatively few social housing tenants engage in home enterprise, possibly through concern that their tenancy agreement would not allow it. In reality there are many types of businesses that tenants could run from home without causing any difficulties. Our new guidance shows how social landlords can actively promote opportunities for tenants and support them with information, advice and signposting. This is a positive step that could offer employment opportunities to a significant number of people looking for work, particularly tenants who are looking after their family or have a long-term sickness or disability."
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