New data revealed on Tuesday that almost 14,000 student start-ups and social enterprises generated £821 million in turnover in 2018.
Pareto Law’s report shows that the estimated total turnover of the graduate start-ups was more that HelloFresh and Boohoo (LON:BOO), which totalled £802 million and £603 million respectively.
The estimated total turnover of graduate founded businesses and social enterprises, which currently employ more than 25,000 people, has surged 26% over the course of four academic years.
The report, which is an analysis of data provided by the Higher Education Statistics Agency, shows that the Royal College of Art is the university to have created the largest amount of start-ups and social enterprises in 2017 to 2018 with 251 new businesses started.
“In uncertain economic times it is great to see that student-founded businesses have found a way to grow and thrive,” Jonathan Fitchew, CEO of Pareto Law, commented on the research.
“The challenges faced by any graduate who has started a business over the past few years are significant and those who manage to make the grade should be proud of everything they’ve achieved,” the CEO of Pareto Law continued.
“It just goes to show that stereotypes that are often associated with graduates and students are tired and outdated. They’re hardworking and ambitious creators of wealth and jobs, and a vibrant part of the wider UK economy that we’re proud to serve.”
Jake Butler, Operation Director at Save the Student, added that “the idea of students starting their own ventures, big or small, is not only excellent for the students themselves but also the wider economy. You don’t need £1000s to start and there’s not even a need to set the world alight and going it alone can be a great experience.”
Elsewhere on Tuesday, news emerged from the Office for National Statistics that the UK unemployment rate increased to 3.9% from June to August, an unexpected rise given that the market was expecting the rate to remain at 3.8%.
