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16th August 2016
Santander research shows rise in budding entrepreneurs still at university
Trend
Almost a third of students (30 per cent, or 518,372 according to latest HESA data) currently run or plan to run a business while they are still at university, according to new research from Santander Universities (conducted by YouthSight). The findings represent a 38 per cent increase on the 375,000 student entrepreneurs recorded in 2015.
Amongst those that have already started a business, the average turnover is £13,213 pa, equivalent to a collective £913m and almost double the £478m turnover from last year’s research (according to 2014/15 HESA data). Technology-based solutions (22 per cent) and arts or crafts (18 per cent) are the most common type of student venture. These are followed by clothing and textiles, tutoring and administration services (all at 8 per cent).
The research reveals the most common reason for students to start a business or joint venture is to pursue a hobby or personal interest (70 per cent). This is followed by financial motivation (58 per cent), and work experience (26 per cent). Students are aiming high with ambitious plans for growth. Almost half of all student entrepreneurs (46 per cent) expect their turnover to increase by up to 50 per cent over the next five years, with an additional 10 per cent aiming for a 250 per cent increase in turnover.
The Santander Universities study questioned students about their future plans for their businesses and found that 26 per cent expect to pursue it as a career when they graduate; 57 per cent said they would continue the business as a second job or hobby once they finish university, and 8 per cent said the business would continue under the guidance of someone else. Just 3 per cent said they would close it down.
Matt Hutnell, Director of Santander Universities UK, said: “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. It’s also encouraging that many plan to stick with their business as their main career after graduation when their potential to flourish will be vast.
“Juggling running a business with studying is not an easy task and the prevalence of these businesses demonstrates skill and initiative from UK students. Santander recognises the importance of supporting and encouraging these young business leaders to dare to invent, innovate, create and be entrepreneurial and this is the very essence of our Entrepreneurship Awards.”
