Young entrepreneurs choose online business for a smarter career move

The nation's young and aspiring entrepreneurs are rapidly doing more and more to start-up online business, suggesting the death of the dotcom downturn.

Fresh figures from Palo Alto Software group show that 74 per cent of MBA students plan to start-up their own company after leaving University.

More than half of those responding said that after graduating, they wanted to start-up an enterprise on the internet.

The smaller print of the survey revealed a positive approach to business, with three quarters claiming their top priority business would be "planning ahead for opportunities and challenges rather than following mad hype."

The researchers said from the attitudes logged in the survey, young hopefuls appeared to have learnt from past days of boom and bust and now seemed more strategic in their professional choices.

Students responding said they realised many small businesses find it worthwhile going online rather than opt for costly business rates with a paper-filled filing system.

Tim Berry, chief executive of Palo Alto, said that the new batch of entrepreneurs demonstrated more caution and greater intelligence in their choices by going online.

"There is no question that setting up an internet arm to any business is appealing and a good business model - with it you gain an international shop window and global reach.

"However, as young entrepreneurs dip their toes back in the water, I hope they remember the lessons they claim to have learned from the dotcom boom and plan, plan , plan to make their business a success."

The brighter picture from the SME sector comes as the government has recently said more needs to be done to solve the flagging numbers of young entrepreneurs starting up a company.

Figures from the London Business School show self-employment among UK graduates lags well behind rates of start-up from overseas rivals.

In Germany and the US 15 per cent of 18-24 year olds start their own business - compared against a current rate in Britain of just 8 per cent.

Next month, the nation will see the launch of the National Council for Graduate Entrepreneurs, a new government initiative to send more people to Companies House after completing their final studies.

 

5th August 2004

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