Business development Fred Heritage · 10 August 2016
Student entrepreneurship booms, with tech enterprises leading the way
As many as 30 per cent of all UK university students currently run or intend to run their own business while studying, new research has revealed. Marking a boom in student entrepreneurialism in the last 12 months, 518, 372 students are now running or planning their new enterprise, representing a 38 per cent increase on the 375, 000 student entrepreneurs recorded in 2015. According to the latest annual survey from Santander Universities, student enterprises now generate more than 913m a year for the UK economy each having an average annual turnover of roughly 13, 213. Technology-based enterprises and firms related to arts and crafts are the most common type of student-led ventures, accounting for 22 per cent and 18 per cent of student enterprises respectively. Revealing the confidence of Britain’s budding student entrepreneurs, the Santander study found almost half anticipated their new business’s turnover to increase by up to 50 per cent over the next five years, while 10 per cent aimed for a 250 per cent turnover increase. juggling running a business with studying is not an easy task, and the prevalence of these businesses demonstrates skill and initiative from UK students, said director at Santander Universities Matt Hutnell. ‘student entrepreneurs are an important contributor to the UK economy and it’s great to see an increase of over 30 per cent since last year. Quizzing students about plans for their business post-graduation, 26 per cent expected to make a career out of pursuing their business venture, while 57 per cent said they wanted to continue with their enterprise as a hobby, or a second job. Eight per cent of student entrepreneurs said they would continue after graduation along with the guidance of a mentor, and just three pre cent thought theyd close their business down.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.