TIER 1 (GRADUATE ENTREPRENUR) SCHEME STUDENT GUIDE
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1 TIER 1 (GRADUATE ENTREPRENUR) SCHEME STUDENT GUIDE What is the Graduate Entrepreneur Scheme? In April 2012 the UK Visas and Immigration (part of the UK Home Office) introduced the Tier 1 Graduate Entrepreneur Scheme to allow graduates with innovative business ideas to remain in the UK to develop their business. Under the Scheme, the University can sponsor a small number of recent graduates to stay in the UK on a Visa that allows them to start a business. For the financial year , the University has been given their requested allocation under the scheme and can sponsor up to 20 graduates. If a Graduate Entrepreneur is accepted under this scheme, they will get: Initial permission to stay in the UK for 12 months, with a possible extension of 12 months providing they have made sufficient progress in establishing their business Permission to bring dependants into the UK. Permission to work and to engage in company start-up activity to set up their business (see exclusions below) A reduction from 200,000 to 50,000 as the financial requirement if they subsequently switch to Tier 1 Entrepreneur Visa. Please note, PhD students wishing to start their own business could also do so under the Doctoral Extension Scheme for up to 12 months before considering the Tier 1 (Graduate Entrepreneur) Visa or alternatives. For more information you can visit the Home Office Website. Am I eligible for endorsement? In order to be eligible for endorsement, you MUST be a registered and active member of Strathclyde Entrepreneurial Network (SEN). SEN is the University s company creation resource, providing practical support for emerging Strathclyde entrepreneurs. The Startup Manager will decide which clients business plans will be put forward for consideration by the endorsement panel based on the level of SEN engagement and strength of the business plan. To begin your engagement with SEN, you must register with SEN online here: The place of useful learning The University of Strathclyde is a charitable body, registered in Scotland, number SC015263
2 Students who have registered with the SEN community and are actively engaged may be invited to apply for a Tier 1 (Graduate Entrepreneur) Visa. Applicants will only be considered for this opportunity when they have: Participated in a Business Model Canvas Workshop, and then tested and validated their initial business model over a period of several weeks after the workshop to provide them with a clear starting point for developing a full business plan. Had an initial meeting with the SEN Programme Manager to discuss this Student Guide to ensure that the Eligibility Process is fully understood. Engaged regularly with the Start-Up Manager for a minimum of 6 months. Accessed the support offered through SEN, including: mentoring, business training, peer networks and use of Enterprise Hub facilities. Demonstrated engagement with the wider entrepreneurial ecosystem during their studies (e.g. participation in networking events, workshops etc within the wider Glasgow Innovation District or UK business community). Produced a full business plan including credible, defensible financial projections, which demonstrates that the original business idea has been actively researched, tested, developed and refined, typically over a period of several months, to prove that a credible business opportunity exists and can be exploited with further development. Applicants must also meet the following criteria to be eligible for endorsement: Have been awarded a degree or PhD through study in the UK at the University of Strathclyde (or be a current UK-based Strathclyde student who already has a UK degree.) Please note a Postgraduate Certificate or Diploma only is not acceptable. Not have a full-time employment offer from an employer. Not have previously been in the UK on a Fresh Talent Visa, a Tier 1 Post Study Work Visa or any previous post-study work permission. Have 945 in cash funds in their name as a minimum balance over a period of 90 days within 31 days of their application (if the student is applying from overseas, they must show a minimum balance of 1,890). Who decides if my Business Plan should be endorsed? The quality of the business plan will be determined initially by the SEN Start-up Manager who will then put forward the most credible business opportunities to the panel for consideration. The panel will comprise of at least two commercially experienced members of the SEN community. Panel members will be briefed by the Start-up Manager as to the applicant s level of engagement with SEN and their business planning activities. The panel may also require an in-person meeting with applicants who will be invited to provide a pitch to enable the panel to make a final decision on whether to recommend endorsement or not. The panel will use the following criteria: 1. Is it clear what the product or service will actually do / achieve? 2. Is there any evidence that a need or opportunity for the proposal exists, i.e. has there been primary market research/customer discovery undertaken, in addition to secondary market research? 3. Is the proposal directly linked to customer need and does it demonstrate added value to the customer? 4. Is there evidence of market research into competitors and evidence of how the proposal provides competitive advantage? 5. Is the target market for the product or service clearly defined? 6. Are milestones detailed, with timescales and clear tasks and are they realistic? Page 2 of 8
3 7. What is the potential of the applicant to actually deliver the proposal, and is there potential to create new jobs by growing a team? Does the business have the potential to add to the UK economy? 8. Are the financial projections realistic and what level of funding will be required to deliver the plan? Is there evidence that sources of funding have been explored? What is the likelihood of meeting Tier 1 Entrepreneur Visa requirements after 2 years? 9. Is the business a genuine start-up? The University will not endorse graduates with businesses which are already operating. According to the UK Immigration Rules a business can be a sole trader, partnership or company that is set up by the applicant. The business plan cannot relate to property management or property development. The University favours supporting opportunities to create companies with high growth potential, and will not normally endorse the following: Franchising where they have not had to develop their own plan, and will be working to someone else s business plan. Taking over an existing business to re-invigorate the business, which was originally based on someone else s business plan. Employment as an operator, for an overseas agent for example. A partnership in which the graduate has not made a significant input to the business plan development (i.e. equal to the other partners). An employment opportunity where the graduate is more likely to be working on someone else s idea. The graduate does not demonstrate the entrepreneurial skills and commitment to drive the creation and development of the business. Self-employment including work as a doctor or dentist in training, or a professional sportsperson or sports coach. A business that will compete directly with existing traders. Working as a consultant, for example, is unlikely to meet the requirements. Panel members will only endorse credible, defensible business plans, up to a maximum of 20 in any one year. This may mean that in some years, fewer than 20 applicants are endorsed. Applicants will generally only be permitted to apply once, however, if the panel felt that, in consultation with the Startup Manager, the applicant should be endorsed with conditions, then the applicant would either be conditionally endorsed with a requirement for further information to be provided, or supported to prepare for a second panel. For the benefit of any doubt, panel outcomes may include: - Endorsement - Conditional Endorsement - No endorsement In the case of Conditional Endorsement, the applicant may be required to provide additional information to the panel for more in-depth review, or provide contact details of potential co-founders, partners, suppliers or customers for further discussion before a final, majority decision is made. Whatever the outcome, the panel s majority decision will be final. Key Dates We strongly encourage you to engage with SEN at least 6 months prior to the month in which the panel will meet in order to ensure you have sufficient time to develop your business plan, and increase your chances of receiving an invitation to pitch to the panel. Below is the timeline you should consider in your final year of study: Page 3 of 8
4 Undergraduates: Register with SEN by end of October Attend a Business Model Canvas Workshop in November Provide a completed, full Business Plan in June Pitch to the endorsement panel in July (dates are confirmed by Start-Up Manager) Postgraduates: Register with SEN by end of February Attend a Business Model Canvas Workshop in March Provide a completed, full Business Plan in September Pitch to the endorsement panel in October (dates are confirmed by Start-Up Manager) What is the endorsement process? 1. Register to join the SEN community Action: Entrepreneur This is the starting point for all start-up support. Start-up support should be accessed at least 6 months prior to the month in which the panel will meet. Enquiries about Entrepreneur Visas are unlikely to be supported beyond this timeline. Please note that students who enquire about Entrepreneur Visas will be allocated an initial 15 minute meeting with the SEN Programme Manager to discuss this Guide and to ensure that all steps of the process are fully understood. See Appendix A. You can register with SEN online here: 2. Attend a Business Model Canvas Workshop Action: Entrepreneur These workshops are designed to help you start developing your business model, which the entrepreneur can then commit time to validating after the workshop. Workshops will also include a short session on eligibility requirements for Tier 1. Business Model Canvas workshops will be held in March and November every year. 3. Register your business idea with SEN and request an appointment for an initial advisory meeting with the Start-Up Manager Action: Entrepreneur. You should bring a copy of your completed Business Model Canvas to this meeting, a minimum of two weeks after the Business Model Canvas workshop (allowing time for some validation of your various hypotheses in the BMC), as well as details about entrepreneurial activities to date and any other relevant information. Contact the Enterprise Team to register your business idea and schedule an initial advisory meeting ( ; enterprise@strath.ac.uk). 4. Participate in ongoing advisory support Action: Active engagement from the entrepreneur with support from the Start-Up Manager Once you ve had your initial advisory meeting, you will have access to a package of bespoke support which may include: Page 4 of 8
5 Enterprise Hub facilities (desk space, co-working with others, access to business books, networking and events opportunities). Potential mentorship through the Enterprise Partners network and the Entrepreneur in Residence. Introductions to professional advisors and other business contacts (e.g. lawyer, accountant, IP attorney). S100 pitching opportunity to wide audience of business people to seek advice and other support. Funding to support some initial start-up costs through the Strathclyders Into Business fund. Support for business competition, grant and Enterprise Fellowship applications. Business planning, including financial planning, support. Rising Star Programme for high-growth business opportunities 5. Register your interest in the Tier 1 Graduate Entrepreneur Visa and confirm your initial eligibility to apply with the International Student Services Team Action: Entrepreneur You must check that you meet the general eligibility requirements for a Tier 1 Graduate Entrepreneur Visa at least 4 months in advance of your visa expiry. You should contact the International Student Services Team to obtain the appropriate information. Applications for the Tier 1 Graduate Entrepreneur Visa must be received by the Home Office before the expiry of the current visa. In practice this would usually mean applying before the following dates: o o o Mid to end October - for undergraduate degree graduates Mid to end January - for postgraduate taught graduates Variable times - for postgraduate research graduates 6. Complete a full business plan and pitch Action: Entrepreneur, with support from the Start-Up Manager You must develop a full business plan and business pitch to be approved by the Start-Up Manager. If required, members of a virtual panel may also review your business plan with input from the Start-Up Manager. 7. Conduct a detailed eligibility check Action: Entrepreneur and International Student Services You will need to confirm a detailed eligibility check with the International Student Services team, who will assess your visa history, degree and financial qualifications necessary to obtain a Tier 1 Graduate Entrepreneur visa. Please ensure you have read through this Student Guide and the UKVI guidance before contacting the International Student Services team to make an appointment. Please bring your passport, financial evidence (bank statements or letter) and degree certificate with you. 8. Pitch your business plan to the endorsement panel Action: Entrepreneur, with support from the Start-Up Manager You must deliver a full business pitch and presentation to a panel of commercial experts who will determine whether or not to endorse you for the Tier 1 Graduate Entrepreneur Visa. The outcome of the panel is final. Page 5 of 8
6 9. Endorsement letter and immigration application Action: Endorsed Entrepreneur and ISS If you are endorsed, International Student Services will prepare an endorsement letter and support you in making a Tier 1 Graduate Entrepreneur Visa application to the Home Office. 10. Engage with SEN on a regular basis Action: Tier 1 Graduate Entrepreneur Supported Tier 1 Graduate Entrepreneurs must maintain their engagement with SEN in order to evidence business development activities, ensure that momentum is maintained and meet reporting requirements. This will require a minimum of monthly engagement with the Start-Up Manager and other SEN activities. If I am successful, what are the monitoring & reporting requirements? As a condition of their Visa, Graduate Entrepreneurs will be required to: Spend the majority of their working time on developing their business, i.e. Graduate Entrepreneurs who are found to have taken on full-time employment will be considered to have insufficient time available to deliver on/execute their business plan within an acceptable timeframe. Attend monthly meetings with the Start-up Manager to discuss progress, challenges and plan next steps. Be an active member of the SEN community of entrepreneurs which would be evidenced by regular hotdesking in the Enterprise Hub, participation in networking and entrepreneurial support events and actively seeking support when required. Provide a written annual report to the University on the development and progress of their business. Failure to meet the above requirements could result in the University withdrawing endorsement, which would be likely to result in the curtailment of their Visa. Can I apply for an extension under the scheme? Towards the end of the 12 months, Graduate Entrepreneurs may wish to apply for a 1 year extension. This application will follow the same process as for the 1 st year Visa outlined above but will, in addition, need to cover progress over the previous 12 months, an updated business plan, more robust financial projections and professionally prepared Management Accounts. To be endorsed for an extension by the University, the Start-up Manager must be satisfied with the progress the applicant has made in establishing a business and that they will, on the balance of probability, qualify to switch into the main Tier 1 Entrepreneur route by the end of their second year as a Tier 1 Graduate Entrepreneur. If external review is considered necessary, a virtual panel would be convened to assess the business plan. The Home Office has reduced the criteria for these applicants to switch into the Tier 1 Entrepreneur route by reducing the investment they need from 200,000 to 50,000. Alternative options are to switch into Tier 2 (if they have an offer of a skilled job) or into Tier 1 Exceptional Talent (if they show exceptional promise and are endorsed by a designated competent body for the Exceptional Talent route). How do I apply for a Tier 1 Entrepreneur Visa? If you want to continue to develop your business in the UK you should be aiming to switch into the Tier 1 Entrepreneur Visa as soon as you are able to meet the requirements. You should not wait until you are close to your Graduate Entrepreneur Visa expiry date, instead you should familiarise yourself with the Tier 1 Entrepreneur requirements as soon as possible. You will find general information online here. Page 6 of 8
7 If you decide you wish to enlist the help of a lawyer, we advise you ensure they are experienced in immigration law. As part of your search you may wish to consider: Richard Russell First Permit Ltd Russack Brae, Main Street, Drymen Glasgow; G63 0BG Tel: richard@firstpermit.com Drummond Miller Solicitors 65 Bath Street Glasgow G2 2DD Tel: glasgowenquiries@drummondmiller.co.uk Who do I contact for more information? For business support, contact the Enterprise Team: 6 th Floor, Graham Hills Building (50 Richmond Street entrance) Tel: enterprise@strath.ac.uk For questions regarding Home Office eligibility, contact the International Student Support Team: McCance Building Tel: infoandadvice@strath.ac.uk Page 7 of 8
8 Appendix A - Client Acknowledgement of Eligibility Process Students who enquire about Entrepreneur Visas will be allocated an initial 15 minute meeting with the SEN Programme Manager, before an Advisory meeting with the Startup Manager can be arranged, to discuss this Student Guide and to ensure that the Eligibility Process is fully understood. Please note that by signing this document, there is no guarantee that your business plan will be selected to be put forward and pitched to the Tier 1 (Graduate Entrepreneur) Visa endorsement panel. Forename Surname Contact No. UG, PGT, PGR Affiliated Department Expected Graduation Date SEN Programme Manager or Representative Name: Meeting Location: Meeting Date and Time: I, the undersigned, acknowledge that I have read the full contents of the Tier 1 (Graduate Entrepreneur) Scheme Student Guide (pages 1-7), have discussed these with the SEN Programme Manager, and have understood the eligibility process described in steps 1-10 (on pages 4-6), which includes but is not limited to the following conditions: Participated in a Business Model Canvas Workshop, and then tested and validated their initial business model over a period of several weeks after the workshop to provide them with a clear starting point for developing a full business plan. Engaged regularly with the Start-Up Manager for a minimum of 6 months. Accessed the support offered through SEN, including: mentoring, business training, peer networks and use of Enterprise Hub facilities. Demonstrated engagement with the wider entrepreneurial ecosystem during their studies (e.g. participation in networking events, workshops etc within the wider Glasgow Innovation District or UK business community). Produced a full business plan including credible, defensible financial projections, which demonstrates that the original business idea has been actively researched, tested, developed and refined, typically over a period of several months, to prove that a credible business opportunity exists and can be exploited with further development. Student Signature: Date: Witnessed by: SEN Programme Manager or Representative Name: Page 8 of 8
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