Debt puts off student entrepreneurs

Wednesday, October 5, 2005

Students are being put off becoming the next Richard Branson by the huge amounts of debt they incur from their studies.

A report by AXA has revealed that a fifth of 16-24 year olds are discouraged by the idea of starting their own company because of concerns over finances.

With the recent introduction of top-up fees, and the increasing need for student loans, the nation's young adults are finding that the cost of higher education can be daunting.

"Young people are undoubtedly under a lot more pressure financially than in the past and while many dream of their own company, they are put off by what can seem like huge obstacles," said Lou Macari, head of business consultancy and training at AXA.

The survey showed that around 60 per cent of students would like to start their own business but reasons other than money, such as lack of business knowledge or information, have also turned some against the idea.

Following the introduction of top-up fees, the government has this week launched a new television and press campaign to inform students of the new funding arrangements for their education.