The West Midlands is seeing a boom in university-founded start-ups – but without the right investment, many could be lost to London or overseas, University of Staffordshire has warned.
New figures from Universities UK (UUK) show a 70 per cent rise in start-ups launched at UK universities since 2014/15. These ventures now employ over 64,000 people – a 177 per cent increase – and in the West Midlands alone, universities helped launch 2,336 start-ups, supporting more than 2,100 full-time jobs in 2022/23.
But despite this success, start-ups in the region generated a combined turnover of just £28.3 million last year – significantly lower than other parts of the UK. Without more support to help them grow, experts warn the region risks becoming an ‘incubator economy,’ where great ideas are born but scale up elsewhere.
In an effort to change this, the University of Staffordshire is providing mentoring, investment connections and specialist facilities through initiatives like its Innovation Enterprise Zone and knowledge transfer partnerships.
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.”
UUK is calling on the government to commit to long-term funding, such as the Higher Education Innovation Fund (HEIF), to support the next wave of university-founded businesses.
