Funding for student businesses

Des Graydon. Photo / Chris Melville

Entrepreneurial students at the Auckland University of Technology will be able to launch their ideas as businesses with the help of a $10 million venture fund.

Due to be officially launched in May, the fund, to be administered by the university and a group of business executives, will enable any student to apply for money to develop and innovate ideas.

Dean of the Faculty of Business and Law Professor Des Graydon said the idea was spurred by AUT's advisers in the business community.

Developing entrepreneurship was important during a recession because "wealth stimulates wealth", he said.

Any current or former student will be able to apply for the funding, regardless of whether they studied business.

For example, this would allow a health student to set up a private practice, or a fashion design student to set up a clothing line, Professor Graydon said.

First-year AUT business students are already required to set up their own small business in groups, and many have indicated they would like to develop this further - the fund would allow this to happen, he said.

AUT's student president, Andre D'Cruz, who set up a student-driven organisation to foster entrepreneurship within the university last year, said the fund would have wide benefits for students.

AUT will be calling for investment from the business community, and hopes to increase the fund to $10 million in the next three to five years.

Each year the interest accrued on the fund will be awarded to young entrepreneurs who will pitch their schemes to a panel of New Zealand business and academic leaders.

AUT will hold shares in the start-up company so the students will remain accountable.