Ten reasons to start your own business after university

While 73% of UK graduates report that going to university helped them secure the jobs they wanted in under a year, this might not be the case for the more entrepreneurial graduates.

Many graduates struggle to find satisfying work in their chosen industry, with some employers offering uncompetitive salaries or favouring those with years of experience.

For some graduates, the solution may be to start their own business.

It can be a challenging but rewarding experience, providing you with the opportunity to make a career in your chosen field.

Ten reasons to start your own business after university

Here are ten reasons you might consider starting your own business after graduation.

1. It’s a route to employment

In 2022, the graduate employment rate in the UK was 87.3%, meaning thousands of people could not secure a job after earning their degree.

Even those in employment can struggle, with over a third of graduates ending up in roles they’re overqualified for.

Starting your own business could be one way to challenge yourself, avoid low job satisfaction, and better apply your skillset.

Being self-employed could mean you may make less money initially, but your earning potential is uncapped, and you have the chance to try your hand at lots of different roles – from marketing to HR.

2. You have a great business idea

If you have a great idea for a business, it can be hugely rewarding to make it a reality.

Whether you want to earn money through your skillset, or you’ve identified a gap in the market, there are plenty of opportunities out there.

Taking a chance and testing your idea could be the start of your satisfying and rewarding start-up journey.

3. There are flexible working options

More than 70% of UK organisations have embraced flexible work, while some many people still work a traditional 9-5 working day, increased flexibility is becoming the norm in the workplace.

Starting a business can support a flexible work-life balance.

As your own boss, you can choose the hours you work, and although creating your start-up can result in long days, you may be able to build your schedule around your priorities.

4. It’s a side hustle

Starting your own business after university can be something you pursue alongside a more traditional career.

Some graduates can work part-time to cover their main living expenses and use their non-working time to focus on launching their businesses.

This can allow recent university leavers to gain valuable workplace know-how, make contacts, and work on their business ideas at the same time while still earning.

5. It’s actually your dream job

The traditional career path may be a thing of the past, and graduates may find themselves in roles that don’t entirely match their aspirations or interests.

In order to gain that ‘dream job’ that combines satisfactory work with a decent salary, you might have to create your own opportunities.

By creating your own start-up, you can shape your business around your ideals, choose the right sector and specialities for you, and build the workplace and career tailored to your particular interests.

6. It’s engaging

Starting a business can be risky, but it can also be engaging as you deal constantly with new challenges and opportunities.

That means it could be the perfect opportunity for graduates who don’t want the predictability of an established job with set tasks that are often repetitive.

Your workdays may often be unpredictable, and each day could be vastly different as you’re responsible for countless tasks.

As a graduate, that might be a tempting proposition.

7. There’s the potential for high salary

The average salary for UK graduates has stagnated in the past few years, currently sitting at under £26,000 per year.

There may be little room for improvement beyond that, too, with UK-based graduates aged between 16–64 earning £38,500 on average last year.

This is only slightly higher than the median wage across the country, so unless you specialise in a particularly in-demand field, you might have to branch out on your own to take your income to the next level.

If you are planning to start your own business, it could be worth conducting in-depth market research to see whether your idea can fill a gap in the market and the potential income you could earn.

8. You’ll avoid job competition

Another challenge for graduates looking to enter their chosen industry is the highly competitive job market.

There are often significant numbers of other people who are equally qualified applying for the same position – and if you don’t already have real-world experience, you could be at a disadvantage.

One way to avoid this problem is by starting your own business – you’ll be employee number one from the start.

9. It might suit your personality

Some people are naturally suited to leading and managing.

This can make entry-level work stressful and limiting, as graduates may be given little room for independent work and creative decision-making.

If you’re the type of person who prefers to work in their own way, you might consider creating your own business.

You’ll have the power to make your own decisions and work in the way that suits you best.

10. You can always try again

As someone starting out in their working life, there’s greater scope to try, fail, and try again.

If your business idea doesn’t work out, this could provide valuable learning for future ventures and prospective employers.

If you try and it’s not for you, the valuable skills, experience, and lessons from starting your own business may interest employers and give you a leg up if you decide to pursue a career instead.

Things to consider before starting your business

Before beginning your start-up journey, you should consider a few things to give yourself the best chance of success.

Your biggest challenge may be financing, and it’s the number one reason why many UK start-ups fail within the first three years.

Read our guide on the support and funding available to young entrepreneurs.

It includes advice on how to secure a government-backed personal loan of up to £25,000 that can help start-up businesses get their idea off the ground.

Find out now if you’re eligible for a Start Up Loan.

Discover our essential tips for starting your own business by reading our handy guide.