9th August 2010
Job shortage encourages a quarter of graduates to start their own business

Research by insurance firm Hiscox shows that almost a quarter of students graduating in 2010 and 2011 are planning to start their own business.

One in three of the 1,000 students polled claimed that the motivation behind their new business plans was down to a 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, according to SME news source Start Up Donut.

"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," he added.

George Derbyshire, chief executive of the National Federation of Enterprise Agencies, said that the shortage of traditional graduate jobs is in part as a result of the economic climate, but also due to the financial pressures that students are under.

"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," added Derbyshire.

Students looking to start their own business can seek help and advice from government-backed schemes such as the National Council for Graduate Entrepreneurship (NCGE), and the National Consortium of University Enterprise Societies, which represents entrepreneurship societies set up by the students themselves.

Graduates or students looking for permanent or temporary catering jobs or work in the hospitality sector can contact rd resourcing to enquire about current work availability and upcoming opportunities.

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