University of Staffordshire is calling for urgent action to help university-founded start-ups in the West Midlands grow and stay in the region – as new national figures reveal a sharp rise in graduate entrepreneurship.
New analysis by Universities UK (UUK) shows that between 2014/15 and 2022/23, there was a 70% increase in start-ups launched at UK universities. Across the country, university start-ups now employ more than 64,000 people in the 2022/23 academic year, a 177% increase since 2014/15.
Between 2014/15 and 2022/23, 2,336 start-ups were created with support from universities across the West Midlands, with more than 2,100 full-time equivalent posts recorded in start-up companies in 2022/23.
However, the estimated combined turnover of start-ups in the West Midlands during 2022/23 stood at £28.3 million – significantly lower than other parts of the UK.
University leaders are warning that without additional support to scale up, the region could become an ‘incubator economy’ – generating great ideas that are quickly lost to London or international competitors.
University of Staffordshire is at the forefront of tackling this challenge. Through initiatives such as its Innovation Enterprise Zone, knowledge transfer partnerships, and student consultancy projects, the University is creating real opportunities for staff and students to turn ideas into successful ventures.
It also provides mentoring support, access to specialist facilities, enterprise modules across degree programmes, and connections with investors and regional partners. These wraparound services ensure students not only learn how to start a business – but have the infrastructure and confidence to scale it.
Professor Martin Jones, Vice-Chancellor and Chief Executive of University of Staffordshire, said: “Universities have become a powerful engine for economic growth, and the West Midlands is no exception. At University of Staffordshire, we’re proud to support the region’s entrepreneurial talent – giving them the tools, space and expertise to succeed. But we must be honest: great ideas alone aren’t enough.
“Too often, we see businesses start here but scale elsewhere. That’s a loss not just for our graduates, but for our regional economy. We need greater investment, stronger partnerships and long-term commitment to help our start-ups grow and thrive right here in the West Midlands.”
Universities UK’s analysis suggests that if current trends continue, up to 27,000 new start-ups could be established at UK universities by 2028, generating £10.8 billion in turnover.
But to unlock that potential, UUK is calling on government to commit to long-term funding programmes like the Higher Education Innovation Fund (HEIF) and to work with regional leaders to strengthen local business ecosystems.
Vivienne Stern MBE, Chief Executive of Universities UK said: “The growth in university supported start-ups over the last decade has been a staggering success. We can do more – both to encourage and support new businesses born in our universities, and to ensure that they can remain in the UK and grow here. This is just one of the ways that our universities can put their shoulders to the wheel with government to achieve stronger growth. Of course, they need to be on a firm financial footing to do this.
“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.”
University of Staffordshire’s approach is already aligned to this agenda – placing enterprise and innovation at the heart of its 2022–2027 Strategic Plan. The institution continues to work with regional investment partners to provide opportunities for businesses to grow in place, rather than relocate.
The new statistics are being released alongside the launch of ‘Unis Start Up the UK’, Universities UK’s new campaign to celebrate the impact of university start-ups on local economies, job creation, and innovation. The initiative also highlights how universities are helping develop the entrepreneurial skills the UK economy needs – from start-up hubs to enterprise teaching.