Students considering self-employment to avoid debt troubles?

A number of students in the UK may try their hand at self-employment when they finish university to help prevent them falling into debt difficulties, new research has suggested.

Conducted by Hiscox, the survey found more than half (54 per cent) of the scholars currently studying in London have plans to become entrepreneurs in the near future.

Moreover, 33 per cent cited a shortage of jobs as the main reason for them wishing to work for themselves.

The investigation revealed 40 per cent of university goers in the nation's capital are already running or are about to launch their own business venture.

Nearly one-in-five (18 per cent) intend to embark on a career in IT, while 11 per cent are eyeing up a job in hospitality or catering and another 11 per cent are considering entering the education sector.

The research found 30 per cent of those London pupils graduating in 2010 and 2011 began their courses intending to become self-employed at some stage.

Furthermore, 40 per cent have had a business idea up and running while in higher education or are in the process of setting one up now.

More than a third (37 per cent) of would-be entrepreneurs said they are aiming to be running their own business by the time they reach 25 years old.

John Heaney, small and medium-sized enterprise expert at Hiscox, warned there can be "both risks and rewards in the business world".

A recent survey carried out by the Consumer Financial Education Body found more than two-thirds of UK parents are concerned about the financial implications of sending their children to university.

By James Francis