Rising university fees and uncertainty in the jobs market place are resulting in increasing numbers of young people opting to work for themselves, according to a Birmingham firm of chartered accountants.

Haines Watts, who act for many established small and medium sized enterprises and owner management businesses, say they have received increasing numbers of enquiries from young people who are opting to go from school or college into direct employment - working for themselves - in preference to having to foot up to £9,000 a year in academic fees.

Andrew Jones, a partner with Haines Watts, Birmingham, said he had first noticed the trend at the beginning of the year - but with A level exams now over, and university potentially looming, the level of enquiries from would-be entrepreneurs had increased significantly.

"In the past two months, we have had calls from six young people, each of whom is intent on establishing their own business. Whilst this is not a large number, it is way higher than we have experienced in previous years and is almost certainly due to young people facing what they believe are unattractive  alternatives: either going to university and potentially incurring significant debt or entering employment (assuming they can get a job in the first place). Neither of these is proving very attractive so they are going for the alternative route - self employment."

Mr Jones believes that television programmes such as Dragon's Den and The Apprentice have spurred young people on.

"Although the UK's economic recovery is still fragile, setting up a business is proving popular. In fact, the timing could be perfect: climbing out of recession, existing businesses are looking for services and support that are energetic, have a low cost base and where there is a real desire to get up and go. 

"Setting up any business is not easy but young people reckon they have little to lose."

Mr Jones' views were supported by Anthony Howell of Howell Consultancy Limited - a client of Haines Watts, Birmingham - who is a mentor to young people at Birmingham City University through BeSeen (Birmingham Skills for Enterprise and Employability Network). The network offers the University's graduates and students support and training for their fledgling businesses.

"What young people lack in business experience they make up for in enthusiasm. My role is to support them with their business plans, securing funds and getting cash flow sorted. What they are looking for is practical hands-on experience," said Mr Howell who gives regular talks to young entrepreneurs through the BeSeen project.

Figures released earlier this year by the Office for National Statistics said that the number of private sector businesses in the UK at the start of 2010 had increased by 1.1% since the start of 2009. There were an estimated 4.5 million private sector businesses in the UK at the start of 2010 - an increase of 48,000 on the previous 12 months. Their combined annual turnover is £3,200bn.

For more information on Haines Watts, please visit their website here: www.hwca.com