There are fewer young people working than at any time in the past two decades, according to figures which show that one in five 16 to 24-year-olds are unemployed.
Figures from the Office for National Statistics show the “inactive” population – which comprises young people who are neither working nor unemployed – stands at nearly 3 million, the highest level since the data was first collected in 1992. The analysis says two-thirds of these 16 to 24-year-olds are staying on in education, perhaps to stave off unemployment.
It’s these figures that raise the question once again – is it better to stay in education – or forego those entrepreneurial ambitions? It’s the eternal dilemma that rears its head again and again amongst both academics and the lone-business-rangers alike.
Some argue the value of Higher Education has declined significantly given the share of UK population holding a degree has doubled over the last two decades. And further still, jobs are in shorter supply than ever before – meaning even if you have a degree, the chance of securing one of the higher paid jobs in this country is (sadly) in decline. In 1993, 68% of graduate employees had a job in the highest skill group – including roles as managers, engineers or accountants – compared with 57% in 2010.
That said of course, advocates of HE will always stress the stats when it comes to unemployment rates and quality of life – the figures for which are considerably more favourable for those who have been to University.
What hasn’t been accounted for though is the now crippling student debts many people will be faced with. With the average graduate facing a £25,000 weight around their neck once finally completing a course, this is a figure which should not be ignored.
Money aside, just for a moment, let’s look at the actual pros and cons here.
There are many fantastic business schools in the UK, including of course, London Business School, which trumps all U.S Ivy League College’s such Yale, Harvard and Stanford in the Global MBA Rankings 2011. Oxford, Imperial Business College, Cambridge and Manchester also offer fantastic courses.
The networking opportunities at such places are unparalleled, and people who have gone on to be successful entrepreneurs often attribute their time in HE for allowing them to make incredible connections. Some found business partners, while others made friends with people who were able to help them with the entrepreneurial ventures in other ways.
These institutions also encourage and help students in their first steps to setting up a business – often offering all sorts of support systems that are simply much harder to find in the ‘real world’. Further, having a degree – particularly in the fields that your business is in – can offer a level of credibility. When you’re dealing with bankers and investors for instance, having more knowledge of the industry you’re working in will only serve to help you. That wasn’t true for me, but I can see how it would help.
Should children be taught business skills at a much younger age?
Conversely, there is no substitute for learning the hard way – discovering pearls of wisdom from making mistakes and having to rely on your own grit, determination and passion to make things work – knowing that if you don’t, the road ahead doesn’t look quite so pretty.
I don’t have any regrets about not attending University and truly believe at this point in time, if you’re young, ambitious and remotely savvy it is by no means a necessity to continue with education. It should be the case that at a much younger age, children are taught in school about money and basic business. Then, as they grow up, they should be taught more about how to define their ideas and further still, about business strategy. By the time the child becomes a teenager, they should be equipped with countless more skills than they currently have, so they ultimately have more options.
Young people now believe there are only two options: carry on with education, or get a job. At nowhere along the educational road is it encouraged these people go on and try to make it alone with their own business. In fact, it’s not even brought up as an option.
Whether you decide to go on to University to study is an extremely personal choice, but one that should be set off against many more alternatives. If you are a business school student I’d love to know your opinion. Likewise, if you opted not to continue in education, and favoured the world of startup’s over textbooks, then I’d love to hear from you too.
This is an extremely interesting topic of debate and one I’d be interested in hearing as many different opinions as possible on. Don’t be shy, post below – alternativly, tweet me here @asapearce
