New Research Predicts 27,000 New Start-Ups Founded In UK Universities By 2028

• From 2014/15 to 2022/23 there was a 70% increase in the number of start-ups founded in UK universities
• In the 2022/23 academic year, 64,384 people were employed by these start-ups – up 177% since 2014/15
• New analysis has revealed that with the right support, by 2028, 27,000 new start-ups could be established by students and staff at UK universities supported by over 400 accelerators and 300 incubation hubs in universities in all parts of the country.
• University leaders warn UK risks becoming an ‘incubator economy’ and are calling on the government to act now so universities can continue to support start-ups to scale up in Britain

The above figures, released by the Higher Education Statistics Agency (HESA), clearly show that there’s been a huge spike in start-ups over the last ten years or so that have been supported by universities in the UK, with more and more higher education institutions creating business incubators to attract top level student talent.

Their data on the interaction between Higher Education institutions, businesses and their local communities how that:

• From 2014-15 to 2022-23 the number of active start-ups established at universities increased by 70%, with more than 4,300 firms registered on average each year
• 38,750 companies have emerged with the support of universities since 2014/15
• Over the same period, student start-up turnover across the higher education sector increased by over 750% from £574,082,000 to £4,920,969,000 and external investment into these start-ups increased by almost 350% from £302,791,000 to 1,351,585,000
• Start-ups established at universities are creating local jobs. In the academic year (2022-23) 64,384 people were employed by start-ups that had emerged from universities. This figure has grown in the last decade by a staggering 177%

However, in order for this trend to continue, Universities UK (UUK) has sounded a warning that these higher duction institutions will require sustainable funding.

Their analysis of the data predicts that if the current trend continues, 27,000 new start-ups could be founded over the next three years.

But… many of these firms are struggling to scale up past the start-up stage, with university leaders worried that firms established by themselves, in the local area, could end up moving to London, or even abroad, without more Governmental help, leaving the UK as an ‘incubator economy’ in which firms are started, thrive and then quickly get sold or moved overseas.

“Universities provide a foundation for economic growth through the knowledge exchange they conduct, and the graduates they educate. Few people know that they also work closely with businesses to help them grow too. Using their kit and equipment, and their expertise, they support start-ups, generate their own spin out companies, and work with businesses from the wider economy to provide practical assistance to help them grow.

Vivienne Stern MBE – Chief executive, Universities UK