What’s the future of university start-ups?

We want to make sure that the potential of start-ups and their contribution to growth reaches every part of the UK. 

The talent, skills and enterprise of the people of the UK are a key asset and a foundation for future prosperity. There is huge potential. With support, collaboration and investment, we can create a step-change in start-up activity, creating jobs, opportunities and a more secure economic future. 

Will the number of start-ups grow?

We estimate that by 2028, entrepreneurs supported by universities will set up around 27,000 start-ups and social enterprises, with a predicted turnover of around £10.8 billion. These companies will receive an estimated £2.6 billion of external investment.

By 2028–29, student and staff start-ups are also forecast to employ around 100,000 people.

What can universities do?

To reach our ambition to further grow the number of innovative start-ups, universities can:

• Increase their efforts to reach and support more students by:
  • further embedding skills development in the curriculum
  • raising awareness of opportunities
  • promoting workshops, events and summer schools
• Reach out to more businesses, entrepreneurs and partners to:
  • support their programmes
  • inspire students
  • embed enterprise development in placements, work experience and internships
• Increase local collaboration with other universities to:
  • pool their resources
  • share activities and facilities
  • enhance their collaboration with local businesses

What can the government do?

To reach our ambition to further grow the number of innovative start-ups, the UK Government can:

• Provide sustainable investment in funds that are already proven by universities to create growth, opportunities and jobs. The government already supports university start-ups through the Higher Education Innovation Fund (HEIF) in England and the recently announced UK–wide proof-of-concept fund to support spin-outs. The government can further support universities by:
  • extending Higher Education Innovation Funding (HEIF) over the long term. This funding represents excellent value for public money with every £1 in investment generating an additional £8.30.
  • restarting funding lost by the withdrawal of European Structural and Investment funds, which will support university–business collaboration and grow universities’ knowledge exchange activities. These activities already have an economic impact of £9 billion per year.
• Collaborate more with universities to increase investment in start-ups and spin-outs. This will benefit not just the start-ups, but our economy and communities. The government could do this by:
  • supporting universities in all regions to work with investors to pool resources and increase investment, like Midlands Mindforge and Northern Gritstone
  • ensuring this investment stays in the UK and reaches across the country. The British Business Bank could work with universities to invest in start-ups and spin-outs across the UK, preventing them moving to London or abroad.
• Embed universities in local growth planning. This includes all nations of the UK and in England, both regions with Mayoral Strategic Authorities and those developing them.