Universities should encourage "entrepreneurial spirit", said the National Council for Graduate Entrepreneurship (NCGE), in a move aimed to promote the merits of owning a business or becoming a contractor.

The scheme is designed to lessen reliance on the public sector and offers "a positive challenge for university leaders", according to the NCGE.

Ian Robertson, the council's chief executive officer said: "That view of non-reliance on the public sector should percolate throughout the university, and all departments and individuals should explore ways of engaging with industry and entrepreneurs in a more beneficial way for everyone."

Meanwhile, research from Hiscox has found that London students graduating in the next 18 months possess a strong entrepreneurial spirit, with 54 per cent already having a business idea compared to the national average of 32 per cent.

In addition, 33 per cent say the job shortage has prompted them to think about working for themselves.