Entrepreneurs who opt out of higher education are just as likely as those with degrees to earn six figures or more, according to a study by GoDaddy.
New research casts doubt on the idea that would-be entrepreneurs could benefit from studying at university before starting a business. A study by GoDaddy has found that there is no material difference in terms of financial success between those entrepreneurs with a degree and those without.
The findings show that 19% of entrepreneurs who didn't continue their education past A-levels have an annual turnover of over £100,000, matching those with degrees (also 19%). The findings come from Venture Forward, a multi-year international research initiative by GoDaddy, that analyses data from more than half a million digital microbusinesses in the UK.
What's more, over three-quarters of entrepreneurs who didn't attend university say they are glad not to have the debt burden. With the average student loan debt now exceeding £40,000 on graduation, GoDaddy's findings show that younger entrepreneurs are increasingly likely to side-step university altogether. The under-30 cohort has been impacted by both the rise in tuition fees and historically high interest rates on repayment; as a result, it seems many young people are turning to enterprise instead.
"GoDaddy's research indicates that entrepreneurship is becoming an increasingly attractive alternative to higher education. With costs rising against a challenging economic backdrop, we are seeing a generational mindset shift in the way young people look at the value of university degrees." Andrew Gradon, head of GoDaddy UK & Ireland.
It seems that young people are no longer waiting to start a business either. Entrepreneurs under 30 are twice as likely to have started a business straight after their A-levels when compared to the national average. Across entrepreneurs of all ages, only 11% left education after their A-levels. However, when looking at entrepreneurs under 30 in the research, this figure doubles to 22%.
The findings also show that:
- Less than half of entrepreneurs who went to university (46%) feel their degree was useful for life as an entrepreneur;
- 34% say that starting their business sooner would have been more advantageous than completing their degree.
Bringing fresh ideas to floristry
Rachel Brennan, 30, set up her floristry business Blossom and Grow in Harlow, Essex, without having attended university which now generates £140K+ in revenue. She said: "I've always been more practically minded, so attending university to get an academic qualification didn't appeal to me. Instead of higher education, I went on to take a college floristry course and gained experience at a local florist. Taking this route meant everything I learned was tailored to the industry I wanted to enter.
"Three years ago, I set up my own floristry business, Blossom and Grow. Although I didn't have a formal business qualification, I come from an entrepreneurial family. Both my dad and my sister run their own businesses so I picked up some knowledge from them.
"I now generate over £140,000 in revenue annually, and my business is continuing to grow. Over the next year, I'm planning to expand my workforce and upskill them. I want to hire young aspiring florists who, like me, didn't attend university and can bring fresh ideas and perspectives to the business."
Commenting on the findings, Andrew Gradon, head of GoDaddy UK & Ireland, said: "In parallel with the rising cost of university education, the barriers to entry for starting a business have never been lower. With online resources dramatically reducing the time and cost it takes to set up a new company, the majority (51%) of entrepreneurs under 30 reported setting up their business for £500 or less, with nearly one in four (23%) saying they needed no start-up capital at all."
Written by Rachel Miller.