Bright Ideas Win Backing Without Battling Dragons

By Katie Taylor, Financial Mail on Sunday, London

Jan. 14–Deciding what to do with your career after graduation is never easy. But students who want to set up their own business also face a lack of funds, advice and premises.

Now some universities are taking student enterprise seriously and are offering undergraduates cash and business support.

Last year, London South Bank University launched its Enterprise Associate scheme, which helps final-year undergraduates turn their business ideas into commercial reality.

The scheme is funded through the Higher Education Innovation Fund and students receive a £26,000 bursary over the twoyear programme, plus advice. They also graduate with an enterprise-related masters degree.

Design graduate James Barnham-33, from Colliers Wood, south-west London, used the pilot scheme to develop Nova-Flo, a mechanical device that prevents baths overflowing.

James appeared on the BBC’s Dragons” Den programme and turned down an offer of £150,000 of investment.

“I’ve since entered into negotiations with another potential investor,” he says.

“Without the financial support and the huge cost savings that the university provided, I simply wouldn’t be in the same position.”

Students can save money in patent registering and intellectual property rights. Under the terms of the scheme, students are asked to assign their IP rights to the university, which then handles any patent prosecution costs.

After graduation, the university licenses the rights back exclusively to the student, takes a ten per cent equity stake in the enterprise and reinvests any profits back into the scheme.

Ed Tinley, South Bank’s head of business development, says: “The costs of researching, registering and protecting your patent or trademark can be huge.”

Coventry University students can apply for one of 50 scholarships worth £2,000 or benefit from mentoring, accredited business start-up modules and access to virtual incubator networks.

Business development manager for entrepreneurship Liz Read says: “We hope this will encourage more entrepreneurial students.”

—–

To see more of the Financial Mail on Sunday, or to subscribe to the newspaper, go to http://www.financialmail.co.uk.

Copyright (c) 2007, Financial Mail on Sunday, London

Distributed by McClatchy-Tribune Business News.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.