A new study has revealed more than a quarter of UK university undergraduates are currently running or planning to run their own business while studying for their respective degrees.
The research, commissioned by Santander Universities, an organisation that provides funding for student entrepreneurs and start-ups, found that the average turnover of businesses operated by students was £11,408 per year.
Three-fifths (60%) of all students surveyed stated that their desire to set up a business at university was financially motivated. Meanwhile 59% cited a wish to pursue a hobby and transform it into a successful career. Almost a third (32%) also wanted to use their own business venture as a means of gaining valuable work experience.
Tech-based start-ups were the most likely business venture among students surveyed, with 27% citing the digital sector as an area of business interest. This was followed closely by arts and crafts (17%), clothing and textiles (9%) and administration and business services (9%).
There’s no doubt that student entrepreneurs are an ambitious bunch. In fact, 18% of students surveyed said they expected to more than double their turnover in the next five years. That ambition is one of the main reasons why student entrepreneurs now generate over £1bn for the national economy. The number of student entrepreneurs has risen sharply in recent years.
Matt Hutnell, Director, Santander Universities UK, said: “Student entrepreneurs play a key role in shaping the UK economy now and will continue to do so in the future.
“It is encouraging to see that so many students are inspired to start a business whilst at university, from developing software to designing and selling clothing.”
Only 4% of student entrepreneurs surveyed said they would be closing their business down after graduation, with 85% saying they would at least use their business as a second income or pursue it fully as a career.
Any good business idea needs a good business plan, regardless of whether you’re studying at university whilst running it. If you are seeking funding or looking to attract investors in your business, you must present a clear strategy of how your business will look.
If you’re a university student looking to get into business, your local TaxAssist Accountant can work with you to develop a rock-solid business plan with sound financial information, the business’ unique selling points, the goals and objectives of the business and realistic sales forecasts.