Funding cuts may be having an impact on the support universities can provide for commercialisation and community engagement, experts believe, after drops in the number of new spin-out companies and public events.

shows that 5,111 new spin-outs and start-up companies were registered across the sector in the last academic year. This was down from a peak of 5,281 in 2022-23 and the first annual fall since 2018-19.

Of those newly registered, 93 per cent were student start-ups, 3 per cent were social enterprises, 2 per cent were spin-outs with some provider ownership, and 1 per cent were started by staff.

¡°While there has been a slight decline in graduate-led businesses over the past year, it is relatively minor compared to the consistent and substantial growth seen in previous years,¡± Rosalind Gill, head of policy and engagement at the National Centre for Universities and Business (NCUB), told Times Higher Education.

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¡°Nonetheless, we should take note of this trend and ensure that we are providing all the support necessary for graduates to contribute to the economy in this important way.¡±

As funding becomes increasingly stretched, Gill warned that providing the necessary advice and support to start-up companies may become more challenging.

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While the Russell Group was responsible for around a fifth of the total of new companies, the institutions producing the most spin-outs and start-ups might not be expected.

The University of the Arts London registered the most student start-ups in 2023-24 (493), followed by the University of East London (218) and the Royal College of Art (177).

In comparison, the University of Oxford produced just 20 spin-outs and start-ups last year but it generated over ?873 million in external investment.

And according to a recent report by Beauhurst, Oxford is responsible for more spin-outs than any other UK institution between 2011 and 2025.

That report also found that the average stake taken by UK universities has dropped sharply after a review warned that private investment was being stifled.

The new figures, which come from the Higher Education ¨C Business and Community Interaction survey, also show the smallest increase in the number of active firms since comparable records began in 2014-15.

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But spin-outs employed the equivalent of 115,000 full-time employees in 2023-24 ¨C almost three times as many as a decade previously.

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Andrea Taylor, chief executive of Edinburgh Innovations,?the University of Edinburgh¡¯s commercialisation service, said universities can increase the number of staff and student companies through funding, training and culture.

¡°Universities must also back their founders from the bottom up, and that means with training and comprehensive commercialisation support, and with money on the table.¡±

Taylor said a further increase in proof-of-concept funding from government would also be ¡°extremely welcome¡± in helping founders bridge the difficult early stages.

Along with funding concerns affecting spin-outs, the Hesa?data suggests it is also having an impact on community engagement and public events.

shows that academics spent a total of 49,122 days helping to run exhibitions, performance arts and public lectures in 2023-24, which was 3 per cent less than the year before.

About 72 per cent of these in-person and digital events were free ¨C up from 66 per cent in 2014-15.

While art and drama institutions were more likely to charge for their events, many top universities host them for free. Over half a million people attended King¡¯s College London events in 2023-24 ¨C all of them without charge.

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patrick.jack@timeshighereducation.com