40 per cent of students want to start a business
Almost half of UK graduates and students from the South West (40%) have aspirations to set up their own business after leaving University according to new research from Lloyds TSB Commercial, with many citing excitement and a sense of autonomy as key motivating factors. Furthermore, half of the region’s graduates (50%) and students (50%) who want to start up, hope to do so in the next five years – compared to last year when just over a third (33% and 43% respectively) wanted to start up their own business in a similar time frame.
The research was commissioned as part of the launch of the annual Lloyds TSB Commercial Enterprise Awards which scours the nation for Britain’s best University and graduate businesses. All entrants will be considered for two titles - Best Start Up, which will be awarded to a business in its early stages; and Best Enterprise which will be awarded to the business judged to show real potential to grow over the next five years to become a recognised SME within its respective sector.
The study canvassed the opinions of recent graduates and University students towards enterprise. It revealed that in the South West just under a fifth of graduates and aspiring entrepreneurs (15%) had always wanted to start their own business, with the region’s respondents most influenced by their parents or family members, with 30% stating this as their main inspiration. When asked for the three main motivating factors behind this the most popular were excitement and reward (33%); a better work life balance (15%); and being in charge of their own destiny (15%).
More guidance is needed on how to set up a business
Despite the popularity of running a business as a career, there is a clear feeling that more can be done to support aspiring start ups. For example, eight out of ten students and graduates in the region (83%) think that there should be more advice available at University on how to set up a business. In the South West almost three quarters (69%) of graduates feel that there should be more teaching of business skills at school with a similar number (63%) believing that these skills should also be taught at University. Interestingly, most graduates (59%) and students (40%) believe that more should be done to encourage enterprise as a career.
David Beaumont, area director for Lloyds TSB Commercial in Devon and Cornwall, said: “Start up businesses and Small and Medium Sized Enterprises (SMEs) are the absolute lifeblood of the UK economy and so is it very encouraging that there is such a strong appetite amongst both the student and graduate community across the South West to set up businesses. Having more local businesses will provide a real boost to the region’s economy, and it is our role to assist those budding entrepreneurs on this journey by providing the appropriate funding and mentoring to get them off to a good start.”
Students and Graduates feel optimistic about the economy rather than being deterred by it
The popularity of enterprise amongst students and graduates in the South West comes despite continuing economic uncertainty with only 2% of respondents citing that they see the current economic climate as the biggest challenge to setting up a business. It is also encouraging to note that the economy has not deterred this entrepreneurial spirit as more than one in three students and graduates (39%) who aspire to run their own business feel optimistic about the future economy.
Furthermore, when asked what are the biggest challenges that the region’s students and graduates believe they face when starting up a new business these were cited as having the correct funding in place (21%) and having a unique idea (19%).
More needs to be done to raise awareness of grants and funding support
There is a worryingly low level of awareness amongst aspiring entrepreneurs about available grants and funding support. Only one in three (34%) of those with business aspirations in the South West are aware of government grants and funding to help start-ups. However, once made aware, a third said they (36%) would consider applying for a grant. There is also a major appetite amongst students and graduates (86%) to have more advice made available to them from organisations including banks and other business associations.
Jamie Murray -Wells, Founder Glasses Direct and Ambassador of the Enterprise Awards said: “Starting up a business can be a really exciting but daunting task. It’s not just about having a great product but also having the right support and guidance to make it a success. More definitely needs to be done to teach business skills at school and universities but also ensure that those students and graduates that do want to start up their own business are encouraged to do so and not just focus on more traditional career routes.”
David Beaumont concludes: “It is great to see that current students and graduates in the region are not put off by the economic landscape but feel optimistic that with the right idea and funding in place they feel they can make a real success of their business. It is exactly this zeal and determination that will be the recipe for success for entrepreneurs across the South West. We are seeing an increasing number of start-up companies and we are committed to helping future British entrepreneurs. Through these awards we want to find the best businesses among Universities across the UK where so many good ideas start and help those aspiring students and graduates to nurture their ideas into flourishing British success stories.”
The research was conducted as part of Lloyds TSB Commercial’s Enterprise Awards.
Entrepreneurs currently studying at universities across England, Scotland or Wales - or who graduated within the past five years and have been trading for more than 1 year - will be able to enter the awards by visitingwww.lloydstsb.com/enterpriseawards.
