With 26% of students running or planning to run their own business whilst carrying out their studies, of those who have already started, the average turnover is an impressive £11,408 per annum, equivalent to a collective £1 billion, a 32% increase from the £913 million turnover recorded in 2016.
The data, compiled by Santander Universities to support the launch of their eighth annual Entrepreneurship Awards, shows that technology-based solutions (27%) and arts or crafts (17%) are the most common type of student venture. These are followed by: clothing and textiles (nine per cent); administration and business services (nine per cent); tutoring (eight per cent) and charity, voluntary or social work (seven per cent).
The survey revealed that the most common reason for students starting a business or joint venture is financial motivation (60%). This is closely followed by the desire to pursue a hobby or personal interest (59%) and the intention to gain work experience (32%). For one in four (23%) students, the decision to start their own business was influenced by the need to pay off their student loan.
When asked about future plans for their business, 33% of respondents expected to pursue it as a career when they graduate. Over half (52%) said they would continue the business as a second job or hobby once they finish university and nine per cent said the business would continue with guidance from others. Just four per cent said they would close it down.
Matt Hutnell, Director of Santander Universities UK, commented, “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.
“We are continually impressed with the ambition and skills demonstrated by student entrepreneurs who are driven to create their own opportunities and successfully juggle running a business whilst also keeping up with their studies. At Santander we take pride in supporting and encouraging these young business leaders who challenge themselves to invent, innovate and create ideas. We are committed to nurturing their talent and ultimately help them to achieve their entrepreneurial goals.”
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