In recent years graduate start-up rates have remained low, this is due to the common belief that starting a business straight after you graduate is too risky, when in fact young entrepreneurs should be encouraged to do this as they are more likely to be innovative because they are at a time in their lives where they will discover new ideas and hobbies which will lead them to inventive ideas and partners. However, after spending three or more years in higher education many students feel that it is safer for them to work at a company and get a steady paycheck rather than getting out there to start their own businesses and risking an even larger debt to their name. Although there are many graduates who do open their own businesses during or after university, with 581,000 new startups in 2015, the number still remains low compared to the possible numbers that we could be seeing.
Recent graduates have said they feel that although the degree in business makes it easier for them get jobs, they feel like they lacked basic skills when they got into the industry. Students said they could have done with ‘some sort of formal training on how to do presentations’. Other students have also stated that they lacked training in other skills such as problem-solving skills, analytical skills and communication skills. Although many of the students have done a lot of different types of work during their course they felt like they had to pick up these skills once they were already in the industry. These gaps in their education are the reason that graduates do not feel ready to open a business. However, there are now many companies such as startupbritain who are willing to help young entrepreneurs through events such as a bus that gives free business advice and working with local support groups all around the country.
Opening a business has always been, and will always be a risk, but this didn’t stop the 657,790 people who decided to startup last year. Many people have put everything they own on the line, from remortgaging their houses to selling their cars and flats, entrepreneurs have always been taking risks in order for their businesses and ideas to succeed.