After thousands of prospective university students’ futures were decided on results day, new data from GoDaddy has revealed entrepreneurs under the age of 30 are twice as likely to have left education after completing their A-levels rather than going to university.
The research, conducted by Venture Forward, GoDaddy’s international research initiative which analyses data from over half a million online microbusinesses in the UK, comes as university application rates continue to decline nationwide, with less than half (41%) of 18-year-olds applying to university through the Universities and College Admissions Service’s (UCAS) system by the June 30 deadline.
The data showcases that close to a quarter (22%) of entrepreneurs under 30 chose to set up their business straight after A-levels, double the figure (11%) of entrepreneurs of all ages in the research, raising further questions whether prospective students believe higher education is worth the financial and time investment.
At a time when starting a digital microbusiness has never been more accessible, close to three quarters (74%) of entrepreneurs under 30 reported they were able to start their own business with £500 or less in start-up capital.
Delving further into the data, 46% of entrepreneurs felt their university experience was not essential to their success as an entrepreneur and over a third (34%) reported starting their business sooner, rather than completing their degree, would have been more advantageous.
Since the cap on university tuition fees was nearly tripled in 2012, which has since increased further to £9,250-a-year, entrepreneurs under the age of 30 years old have faced a notably higher cost of tertiary education, especially when factoring in historically high interest rates on repayments. 76% of entrepreneurs who did not go to university are glad to not have the debt burden that comes with higher education.
Another significant event in relation to non-degree entrepreneurs starting their own businesses was the COVID-19 global pandemic. With younger entrepreneurs potentially incentivised to pursue other avenues than higher education due to the infrastructural and social challenges of lockdown-mandated remote learning, nearly half (47%) of the British microbusinesses owned by people without a degree were started after 2020.
Venture Forward’s research also shows non-degree entrepreneurs are more likely to employ fellow non-graduates – 64% – compared to just over half (54%) of entrepreneurs with a degree, lowering the barrier of entry to find work for 18-year-olds who choose to leave full-time education after completing their A-levels.
