7 April 2015 09:00
One in ten start-ups formed at university
The number of start-ups being set up by students has increased by 54% in the past 12 months, according to PeoplePerHour.
It means that almost one in ten new enterprises are now established while their founders are still in education.
PeoplePerHour surveyed 1,689 new businesses that had started within the last 12 months. The results revealed that not only are more budding entrepreneurs starting businesses while still in education, but 37% also said they met their co-founder at university.
According to the findings, 57% of undergraduates who had started a business cited the lack of job security upon leaving their studies as a key influence. Another 45% said they had started their business in order to earn extra cash while still in education; while a third (34%) said they had always planned to be their own boss.
The research found that access to internet-enabled devices has allowed students to manage their enterprises between lectures (32%), while socialising (24%) and even during classes (9%).
Almost half (42%) of student entrepreneurs said they manage to fit in at least 20 hours of work on their business per week, whilst 15% said they spend up to 50 hours per week on developing their business.
The speed at which students are getting new enterprises off the ground is also impressive with 31% saying they got up and running within three months; 29% saying it took between three and six months; and 28% saying it took between six and 12 months.
The biggest areas for the growth in young entrepreneurs are Bristol, London and Liverpool.
Xenios Thrasyvoulou, Founder and CEO of PeoplePerHour, said:
“A major factor in this growing trend of new small business owners across the younger generations, is how cheap and easy it is to set up a business and build a client base from day one. The barriers of starting a business being lowered is one of the main reasons we’re seeing such a noticeable rise in students choosing the self-employment route earlier than ever before.”