The proportion of entrepreneurs under 30 who set up their business straight after A levels – without going on to get a university degree – is double that of the national average, new research reveals. 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.
Young people turn to enterprise over higher education
Across entrepreneurs of all ages, only one in 10 (11%) left education after their A levels. However, when looking at entrepreneurs under 30 in the research, this figure doubles to more than one in five (22%).
With the under 30 cohort representing those impacted by both the 2012 rise in university tuition fees and historically high interest rates on repayment, the significant cost of higher education appears be pointing to a generational mindset shift, with many young people turning to enterprise instead.
Among entrepreneurs who said they did not go to university, three quarters (76%) are glad they don’t have the debt burden and half (49%) believe they earn as much as entrepreneurs who do have a degree.
Less than half (46%) of entrepreneurs who went to university feel their degree was useful for life as an entrepreneur. Compounding this, more than a third (34%) believe that starting their business sooner would have been more advantageous than completing their degree.
The research also shows that entrepreneurs who didn’t attend university are significantly more likely to employ other non-graduates: 64% compared to just over half (54%) of entrepreneurs with a degree.
Meanwhile, the pandemic – a time when students struggled with reduced contact time with tutors and lecturers, as well as missed out on the social side of the university experience during lockdowns – seems to have contributed to the shift away from higher education. Nearly half (47%) of the British microbusinesses owned by people without a degree were started after 2020.
Barriers to starting a business are lower than ever before
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.
Andrew Gradon, Head of GoDaddy UK & Ireland, commented: “GoDaddy’s research indicates 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.
“In many ways, it’s never been easier to set up your own business. From low start-up costs to innovative AI experiences like GoDaddy Airo now available, microbusiness owners have a wealth of knowledge and resources at their fingertips and small businesses in the UK can now build websites and have them live in a matter of minutes.”
Non-degree entrepreneurs more confident
GoDaddy’s research also reveals additional ways in which microbusiness owners without a degree differ from those who have one. For example, 60% of non-degree entrepreneurs are confident about commercial growth this year, compared to 57% of those who went to university. This is also true when asked if financial turnover will increase in 2024: 59% of entrepreneurs without a degree expect it to rise, compared to 55% of those with a degree.
Andrew Gradon added: “Traditionally, business success has relied on very narrow definitions. However, our insights shows that higher education is not always a necessary component of entrepreneurial success. Entrepreneurs who opt to forgo attending university can be every bit as successful in building businesses and confident about their growth prospects.”
