by Emily Ford Archimedes was famously getting into the bath when the movement of water sparked a Eureka moment: he had discovered, so the story goes, how to tell if the king’s crown was pure gold or not.

For entrepreneurs, the immediate environment can be a rich source of ideas — many graduates have set up successful businesses helping other graduates (see right). For fashion students Viviane Jaeger and her business partner Emma-Jayne Parkes, the inspiration was rain.

“We were sitting in a cafe and the rain was pouring down. One of us said, ‘wouldn’t it be great if your clothes could change colour in the rain’?” says Jaeger. Their unique umbrella, which reveals a colourful design when it gets wet, was born.

Both had worked at big fashion houses during their degrees at London College of Fashion but wanted to go it alone. Initially, the umbrella was in danger of remaining an idea only: “The scientists we talked to said it was too difficult.” After two years of laboratory experiments they found a chemical formula that worked — highly secret and protected by lawyers. Winning an £8,000 grant from Deutsche Bank for their business plan helped them avoid getting into debt.

Their business, Squid London, was launched in January and sold 100 umbrellas in 11 days. They are now stocked at the Tate museums and the Museum of Modern Art in New York.
“There has never been a better time to start up as a graduate — there has never been more support,” says Ian Robertson, chief executive of the National Council for Graduate Entrepreneurship. While the economic climate seems forbidding, graduate businesses are more likely to succeed than others because they are usually more small scale and sustainable, he says. “The first 18 months are critical.”
The council has seen huge interest from graduates who are unable to get a job or simply choose to go it alone. It has doubled the resources available to help 5,000 graduates this year.

You do not even need an idea, Robertson says. “Many famous entrepreneurs didn’t have an idea to start with or had one that didn’t work. We help people to come up with ideas.”
Robertson is adamant that funding need not be a concern for start-ups. The charity Business Link, Regional Development Agencies or banks can all help. “There is money out there. The issue is having the confidence to persuade people to part with it.”

The internet is a gift in overcoming some of the obstacles that young entrepreneurs might face, Robertson says. “From a website nobody can tell that you are a 22-year-old graduate. You are completely anonymous.”

Dinah Bennett, the director of the Centre for Entrepreneurial Learning at Durham University, says her research found that current graduates are more naturally entrepreneurial than their predecessors. “They are more innovative, independent, commercially aware.” Of 2,000 students polled, 17 per cent plan to become their own bosses.”

While starting up on your own may seem daunting, a “portfolio career” is rapidly becoming the norm, Bennett says. Jaeger works a part-time job — but wouldn’t have it any other way. “Every morning when it’s raining I’m so happy — I know it’s going to be a good day for business.”