Research from Santander Universities found that student entrepreneurs had an average turnover of £11,408 per annum.

This was the equivalent of a total collective turnover of £1bn in 2017, a 32% increase on the £913m recorded in 2016.

Financial motivation was cited as the most common reason for starting a student business (60%), followed by the desire to pursue a hobby or personal interest (59%) and the intention to gain work experience (32%).

Matt Hutnell, director of Santander Universities UK, said: “Student entrepreneurs play a key role in shaping the UK economy now and will continue to do so in the future.”

Technology-based solutions (27%) was the most common type of student venture, followed by arts or crafts (17%), clothing and textiles (9%) and administration and business services (9%).

“It is encouraging to see that so many students are inspired to start a business while at university, from developing software to designing and selling clothing,” added Matt.

“We are continually impressed with the ambition and skills demonstrated by student entrepreneurs, who are driven to create their own opportunities and successfully juggle running a business while also keeping up with their studies.”

Almost a fifth of student entrepreneurs expect their turnover to more than double over the next five years (18%), with an average projected increase in turnover of 68% during this time.