Graduates Choose Self-employment
Almost a quarter of students graduating this year and in 2011 are making plans to set up their own business, research from insurance firm Hiscox has revealed.
The poll of 1,000 students carried out in June 2010 found that 32% already have a business idea and are making plans for it to become a reality. It also highlighted that one in three were considering working for themselves due to the current shortage of jobs.
“There is evidence to suggest that the slowdown in the post-recession job market has been a driver for graduates to start their own business,”
said Hiscox SME expert, John Heaney.
“This is unsurprising considering nearly two-thirds of the students we surveyed were concerned that they might not be able to secure a job post university, and almost a third believed that there are just not enough roles available.”
“However, we’ve also seen that students are extremely motivated and aspire to emulate British entrepreneurs that have succeeded in the public eye.”
The Hiscox poll also found that 23% of those surveyed are already running money-making schemes or are in the process of setting them up now.
National Federation of Enterprise Agencies’ chief executive, George Derbyshire, said there are a number of factors why this might be.
“There is a shortage of traditional graduate jobs due to the economic climate, plus the financial pressures that students are under to pay their tuition fees and then pay off their debts.”
“However, the high number of graduate start-ups is also due to the fact that a lot of degree courses are becoming increasingly vocational, so students are naturally geared towards applying those skills to a business environment.”
“In addition, there is awareness of entrepreneurship among students as an option due to schemes run by organisations such as the government-backed National Council for Graduate Entrepreneurship (NCGE), and the National Consortium of University Enterprise Societies which represents entrepreneurship societies set up by the students themselves.”