Figures from Higher Education Statistics Agency (HESA) show there has been an explosion in the last decade of start-ups supported by universities up and down the country, as more institutions have set up business incubators and begun teaching students enterprise skills. HESA data on interactions between higher education, businesses and communities reveals:
- From 2014-15 to 2022-23 the number of active start-ups established at universities increased by 70%, with more than 4,300 firms registered on average each year
- 38,750 companies have emerged with the support of universities since 2014/15
- Over the same period, student start-up turnover across the higher education sector increased by over 750% from £574,082,000 to £4,920,969,000 and external investment into these start-ups increased by almost 350% from £302,791,000 to 1,351,585,000
- Start-ups established at universities are creating local jobs. In the academic year (2022-23) 64,384 people were employed by start-ups that had emerged from universities. This figure has grown in the last decade by 177%
In order to continue seeing the growth of innovative start-ups at UK institutions, UUK warns that our world-leading universities must be sustainably funded. Universities UK’s analysis suggests that, if current positive trends continue, over the next three years around 27,000 new start-ups are estimated to be established at UK universities.
Support provided by universities consists of business mentors, providing space and facilities, connecting with investors and hosting networking events. As well as practical support for start-ups, three quarters of UK institutions offer additional or elective modules in enterprise, ensuring that budding entrepreneurs feel confident taking their first steps in the world of business.
Today, Universities UK (UUK) launched Unis Start Up the UK, the group’s latest initiative to showcase the amazing student start-ups and the work universities are doing to support them. The initiative also aims to highlight the vital role these start-ups play in boosting economic growth nationally and locally by creating jobs and attracting investors, as well as how universities are equipping entrepreneurs with the right skills through incubator hubs.
Included in the campaign is Max Scotford who set up Bullion, Yorkshire’s first bean-to-bar chocolate company, after completing an events management degree at Sheffield Hallam University.
He received significant support from Sheffield Hallam’s Enterprise Team, who provided business mentors, seminars and financial support to start the business. Since then, the company has gone from strength to strength. It is stocked in national retailers including Waterstones and Oliver Bonas.
Max said: “It was great to celebrate the impact universities have across our economy. When you start a business, it can often be a lonely road. You’ll have lots of questions, and nowhere to turn.
“I was fortunate that I was able to access Hallam’s graduate support scheme. Connecting me with my mentor, accessing resources and surrounding myself with likeminded individuals.
“I look back at those years and they were some of the best! Building a business from nothing, and Sheffield Hallam University were there to hold my hand along the way.”
Sheffield Hallam’s Enterprise Team helps students and graduates develop the key enterprising and entrepreneurial skills essential for starting up a business venture - from freelancing to start-ups - or to stand out in the competitive graduate jobs market.
The University established the Hallam iLab in 2019, to offer a free, dynamic co-working space that provides specialist facilities and support to start-ups and entrepreneurs.
Vivienne Stern MBE, Chief Executive of Universities UK said: “The growth in university supported start-ups over the last decade has been a staggering success. We can do more – both to encourage and support new businesses born in our universities, and to ensure that they can remain in the UK and grow here. This is just one of the ways that our universities can put their shoulders to the wheel with government to achieve stronger growth. Of course, they need to be on a firm financial footing to do this.
“Universities provide a foundation for economic growth through the knowledge exchange they conduct, and the graduates they educate. Few people know that they also work closely with businesses to help them grow too. Using their kit and equipment, and their expertise, they support start-ups, generate their own spin out companies, and work with businesses from the wider economy to provide practical assistance to help them grow.”
