A third of UK graduates are planning to start their own business due to a shortage of jobs, according to research.
And of the 1,000 graduates surveyed, almost a quarter are now running or about to launch their own enterprise. Survey host and specialist business insurer Hiscox also found that 32% of 2010 and 2011 graduates have a business idea and are making plans to start-up in the near future.
Retail and IT sectors were the most popular sectors and two in five (40%) opted for solely online enterprises, which offer debt-laden and asset-poor graduates low start-up costs and low overheads. Internet-based businesses don’t tend to require premises or many staff to operate.
Research also found that almost a quarter of students have been running, or are in the process of starting, a profitable venture while studying.
One in 10 students err on the side of caution and admit they won’t start running a business straight after graduation, but still intend to work for themselves in the future. More than a quarter of would-be graduate entrepreneurs plan to run their own business by the age of 25, and a third say they’ll be their own boss by the age of 30.
- Some of Britain’s most famous entrepreneurs started their businesses when they were barely out of school:
- Richard Branson: Aged 16 he started a magazine business called ‘Student’. Now worth £2.6bn
- Alan Sugar: Aged 16 he set up his first venture selling car aerials and electricals out of a van. Currently worth £730m
- Duncan Bannatyne: Aged 29 he bought an ice cream van. Currently worth £320m
- Philip Green: Aged 27 he set up his own clothes store. Currently worth £4.4bn
- James Dyson: Aged 22 he invented the ‘Sea Truck’. Currently worth £920m
Responding to the survey findings, Hiscox's small-business expert John Heaney says: “It’s extremely encouraging that, despite the knock on effects of the recession on the job market, students are so positive about entrepreneurship and the best of British entrepreneurial spirit is alive and kicking as many look to set up in the future. This can only mean good things for the future growth of the small business sector, the lifeblood of the UK economy.
“However, there are both risks and rewards in the business world, and aspiring entrepreneurs may find that gaining some life and employment experience, or gaining specific professions qualifications before taking the plunge, would give them the best base for future success.”
Graduates rated Sir Richard Branson, who started his first enterprise at just 16, as the most inspiring entrepreneur globally, closely followed by Lord Alan Sugar.
