Graduate Entrepreneur Visa: Guidance for Applicants

The UK Graduate Entrepreneur Visa was a specialist immigration route introduced in 2012 to attract and retain talented graduates with genuine and credible business ideas. The scheme formed part of the UK’s former Points-Based Immigration System under the Tier 1 framework, designed to bring innovation and entrepreneurship into the UK economy through individuals with the vision and capability to establish sustainable businesses.

The visa was open to recent graduates—either from UK universities or recognised international institutions—who had developed an innovative business proposal with strong growth potential. The core principle of the route was that each applicant required an endorsement from an authorised body confirming the originality, feasibility and commercial potential of their business idea. Endorsements could be issued either by a UK higher education institution (HEI) or by UK Trade & Investment (UKTI), later the Department for International Trade (DIT), depending on the applicant’s circumstances.

Introduced as part of the UK Government’s strategy to promote enterprise and global competitiveness, the Graduate Entrepreneur route allowed talented individuals to remain in or enter the UK to develop their ideas into trading businesses. Leave was typically granted for 12 months with the possibility of a further 12-month extension (maximum 24 months total), during which visa holders were expected to demonstrate measurable progress toward establishing their businesses.

What this article is about: This article explains the purpose and operation of the Graduate Entrepreneur Visa, how the endorsement and application process worked, why the route was replaced, and how its principles continue within the Start-up and Innovator Founder visas, including implications for progression to settlement.

Section A – Overview of the Graduate Entrepreneur Visa

The Graduate Entrepreneur Visa was a subcategory of the UK’s former Tier 1 (Entrepreneur) route, created to encourage innovation among international graduates who had completed higher education qualifications in the UK. It was introduced in 2012 to help graduates with genuine, credible, and innovative business ideas to stay and establish their businesses in the UK after completing their studies. The visa reflected the government’s objective of fostering enterprise, research commercialisation, and job creation through the retention of high-potential entrepreneurial talent.

Under this route, applicants were not required to make a substantial initial investment, distinguishing it from the Tier 1 (Entrepreneur) Visa. Instead, applicants needed a formal endorsement from an approved body confirming that their business idea met the Home Office’s credibility and innovation standards. This endorsement was central to the scheme’s design and ensured that only high-potential business proposals were considered.

Approved endorsing bodies included:

• A UK higher education institution (HEI) with degree-awarding powers and a track record of supporting graduate entrepreneurs.
• UK Trade & Investment (later the Department for International Trade), which could endorse individuals identified overseas through its global entrepreneur programmes.

The Graduate Entrepreneur Visa was initially granted for 12 months, with the option to extend for an additional 12 months if progress could be evidenced, making the maximum period of leave 24 months. During this time, visa holders were expected to move from concept stage to an operational business or to a visa category more suited for established entrepreneurs, such as the Tier 1 (Entrepreneur) route.

1. Closure of the Scheme

The Graduate Entrepreneur route officially closed to new applicants on 6 July 2019, as part of a Home Office reform of the business migration system. The Start-up Visa replaced it, offering a more structured endorsement framework and simplified transition for early-stage entrepreneurs.

Those who already held the Graduate Entrepreneur Visa could continue until the expiry of their leave and, where eligible, switch into the Tier 1 (Entrepreneur) or Start-up routes. The closure formed part of a broader simplification exercise intended to merge overlapping categories and focus the UK’s immigration system on “innovative, viable and scalable” businesses.

2. Who Was Eligible

Eligibility for the Graduate Entrepreneur Visa depended on meeting strict criteria. Applicants were required to:

• Hold a UK-recognised bachelor’s degree, master’s degree or PhD, or an overseas qualification deemed equivalent by UK NARIC.
• Obtain an endorsement from a participating HEI or UKTI (later DIT), certifying the credibility and entrepreneurial potential of their business proposal.
• Demonstrate English language ability at CEFR Level B1 in speaking and listening.
• Show evidence of personal maintenance funds to support themselves without recourse to public funds — £945 if applying in the UK or £1,890 if applying overseas, held for at least 90 days.

Endorsements were valid for three months from the date of issue and had to confirm that the applicant’s business idea was original, innovative, credible, and likely to contribute to the UK economy. Each endorsing institution was responsible for assessing business viability, the applicant’s entrepreneurial capability, and the likelihood of long-term success.

3. Rationale and Impact

The route was widely praised for bridging the gap between study and entrepreneurship. It allowed graduates with limited capital but strong ideas to remain lawfully in the UK to test and develop their ventures. Universities benefited from being directly involved in nurturing spin-offs and student-led innovation, while the UK economy gained access to new ideas and international talent.

Despite its positive reception, the Home Office identified challenges in consistency between endorsing institutions and in monitoring compliance. These limitations contributed to the decision to replace it with a more centralised system under the Start-up and Innovator framework.

Section Summary: The Graduate Entrepreneur Visa was a pivotal step in the UK’s evolution toward a modern, endorsement-based business immigration model. By facilitating entrepreneurial graduates to develop their businesses in the UK, the route supported innovation and economic growth. Its eventual replacement marked a shift toward greater oversight and uniformity through successor schemes such as the Start-up and Innovator Founder visas.

Section B – Endorsement and Application Process

The Graduate Entrepreneur Visa application process centred around obtaining a valid endorsement before applying to the Home Office. This endorsement confirmed that the applicant’s business proposal was credible, innovative, and likely to benefit the UK economy. Without it, an application could not proceed.

The process was designed to maintain high standards of business quality and to ensure that only applicants with genuine potential were supported. Endorsements could only be issued by approved bodies — either a UK higher education institution (HEI) or UK Trade & Investment (UKTI), later the Department for International Trade (DIT). Each endorsing body had its own internal selection process, typically involving written proposals, interviews, and evidence of business planning.

1. Endorsement by a Higher Education Institution (HEI)

UK universities with degree-awarding powers and a track record of supporting entrepreneurship could apply to the Home Office for approval to endorse graduates. Once approved, they could assess and nominate their own graduates for the visa.

To qualify for an endorsement, an applicant needed to demonstrate:

• A genuine and credible business idea with clear innovation and growth potential.
• Capability to develop and manage the proposed business.
• A feasible plan for establishing the business within the UK market.

The HEI had to provide a written endorsement letter confirming that the applicant met these standards and that the institution was satisfied the business idea was both original and viable. The endorsement letter also had to confirm that the HEI would maintain contact with the applicant during their stay and report progress to the Home Office if required. HEIs were expected to monitor endorsed graduates at least quarterly and report disengagement or lack of progress.

Endorsements were valid for three months, meaning applicants had to submit their visa applications within that timeframe.

2. Endorsement by UK Trade & Investment (UKTI) / Department for International Trade (DIT)

UKTI, which later became the Department for International Trade (DIT) in 2016, operated a parallel endorsement system aimed at identifying entrepreneurial talent overseas. Candidates discovered through DIT’s global entrepreneur networks or programmes could be endorsed under this route. DIT endorsements followed similar principles, confirming the credibility and innovation of the applicant’s business idea and the applicant’s potential to establish a UK-based enterprise.

This strand was particularly useful for graduates educated outside the UK who wished to bring their business ideas to the British market. It also supported the UK’s objective of attracting high-value international entrepreneurs.

3. Application Requirements and Process

After obtaining a valid endorsement, the applicant could submit their visa application online. The following supporting documentation was required:

• A valid endorsement letter issued by an approved body within the last three months.
• A current passport or travel document.
• Evidence of English language ability (speaking and listening at CEFR B1 level, e.g., IELTS for UKVI).
• Proof of maintenance funds — £945 for applications made in the UK, or £1,890 for applications made overseas, held for at least 90 days.
• Tuberculosis test results, where applicable.

Applicants were required to attend a biometric appointment as part of the process, after which the Home Office would assess the application. Processing times generally ranged from 8 to 12 weeks, depending on the applicant’s country of residence.

The visa was granted for 12 months, with the option to extend for another 12 months (up to a maximum of 24 months) if the endorsing body confirmed satisfactory business progress. During their stay, visa holders were permitted to work only for their own business or in limited roles related to business development, subject to Home Office conditions.

4. Conditions and Limitations

Graduate Entrepreneur Visa holders were required to comply with strict immigration conditions, including:

• No access to public funds.
• No self-employment except through their endorsed business.
• No work as a professional sportsperson or coach.
• No work as a doctor or dentist in training, unless exempt under the Immigration Rules.
• Requirement to maintain contact with their endorsing body and provide progress updates.

They could, however, take employment unrelated to their business idea if it was necessary to support themselves financially, provided it did not interfere with their entrepreneurial activity.

Extensions were contingent on evidence of tangible progress, such as market research, product development, early-stage trading, or securing investment. Home Office policy guidance required endorsing bodies to confirm measurable business progress before an extension could be granted.

Section Summary: The endorsement system was the cornerstone of the Graduate Entrepreneur Visa. It ensured that only credible, well-supported business ideas were approved, and that universities and the DIT played an active role in monitoring the success of applicants. The process offered graduates an opportunity to transform their academic learning into viable commercial ventures, laying the foundation for future innovation-driven migration routes.

Section C – Transition to Successor Routes

When the Graduate Entrepreneur Visa closed in 2019, it marked the start of a broader restructuring of the UK’s business immigration framework. The Home Office sought to create a system that encouraged innovation while providing clearer progression routes for entrepreneurs. This transition led to the introduction of the Start-up Visa and later the Innovator Founder Visa, both of which drew on lessons learned from the Graduate Entrepreneur scheme.

The closure of the Graduate Entrepreneur route did not affect existing visa holders immediately. Those who held valid leave were allowed to continue until expiry and were given the option to switch to the new Start-up route or to the Tier 1 (Entrepreneur) route if their business had developed sufficiently. Transitional arrangements allowed extensions until 5 July 2021 before holders were expected to switch to one of the replacement categories.

1. The Start-up Visa (Introduced 2019)

The Start-up Visa, introduced in March 2019, replaced the Graduate Entrepreneur route. Like its predecessor, it targeted individuals with high-potential, innovative business ideas that were endorsed by an authorised body. However, several structural improvements were introduced:

• Broader eligibility: The Start-up route was open to applicants beyond recent graduates, including those with relevant entrepreneurial experience.
• Endorsement model reform: Only endorsing bodies approved by the Home Office, including universities and business accelerators, could issue endorsements.
• Stricter criteria: Endorsements had to confirm that business ideas were innovative, viable, and scalable—criteria still central to the current framework.
• Duration of stay: Visa holders were granted two years of leave (non-extendable), compared with the Graduate Entrepreneur’s renewable 12-month structure.

The Start-up Visa’s design reflected the government’s objective to widen access while improving the quality of endorsed business ventures. Applicants could develop their business in the UK and later progress to the Innovator route to continue building toward settlement.

2. The Innovator Founder Visa (Introduced 2023)

In April 2023, the UK government introduced the Innovator Founder Visa, which merged and replaced both the Start-up and Innovator categories. This change aimed to simplify the immigration system for entrepreneurs and create a single, flexible route for innovative business founders. The route is now governed by Appendix Innovator Founder of the UK Immigration Rules.

Key features of the Innovator Founder route include:

• No minimum investment funds requirement (unlike the former Innovator route, which required £50,000).
• Permission to undertake secondary employment, provided it is skilled work at RQF Level 3 or above.
• A three-year grant of leave with eligibility to apply for Indefinite Leave to Remain (ILR) after three years, subject to meeting endorsement and business performance criteria.
• A single set of endorsement criteria based on innovation, viability, and scalability.

The Innovator Founder Visa represents the culmination of policy evolution that began with the Graduate Entrepreneur Visa. It retains the same principle of endorsement-based evaluation but offers greater flexibility and a clearer settlement path.

3. Transitional Arrangements

For those who held a Graduate Entrepreneur Visa at the time of its closure, the Home Office provided clear transitional routes. Applicants could switch to:

• The Start-up Visa, if they continued to develop an early-stage business idea endorsed by a recognised body.
• The Tier 1 (Entrepreneur) Visa, if they could demonstrate significant business progress and access to the required investment funds.

Universities and endorsing institutions were encouraged to help their Graduate Entrepreneur visa holders transition smoothly by reassessing progress and issuing new endorsements where necessary.

4. Long-Term Policy Impact

The evolution from Graduate Entrepreneur to Innovator Founder Visa demonstrates the UK government’s ongoing focus on attracting high-value entrepreneurship. Each successive route refined the balance between accessibility and oversight, with a greater emphasis on measurable innovation outcomes and compliance reporting.

The Home Office continues to prioritise entrepreneurial migration that contributes directly to economic growth and employment. The current endorsement-based model, introduced through the Graduate Entrepreneur framework, remains a defining feature of UK business migration today.

Section Summary: The closure of the Graduate Entrepreneur Visa was not a withdrawal of support for graduate entrepreneurship, but a structural reform to improve oversight and create a unified pathway. Its successor routes—the Start-up Visa and Innovator Founder Visa—built on its legacy, streamlining the endorsement process and offering stronger progression to permanent residence. The principles established under the Graduate Entrepreneur scheme continue to underpin the UK’s modern approach to business immigration.

Section D – Settlement and Compliance

The Graduate Entrepreneur Visa was always intended as a transitional route for graduates with early-stage business ideas, rather than a direct pathway to settlement. However, time spent under this visa could contribute to future immigration categories that did lead to Indefinite Leave to Remain (ILR), depending on the applicant’s subsequent route. Compliance obligations were also central to the visa’s structure, ensuring that holders and endorsing institutions maintained the integrity of the scheme.

1. Indefinite Leave to Remain (ILR) Eligibility

Time spent under the Graduate Entrepreneur Visa did not, by itself, count toward the five-year residence period required for ILR. The route was designed as an incubation phase to allow entrepreneurs to develop their businesses to a point where they could qualify for a settlement-eligible visa.

Typical ILR pathways for Graduate Entrepreneur Visa holders included:

• Tier 1 (Entrepreneur) Visa: Holders who demonstrated business progress could switch into the Entrepreneur category, which allowed settlement after five years (or three under the accelerated route).
• Innovator Visa: After 2019, eligible Graduate Entrepreneurs could transition to the Start-up route, and then to the Innovator category, both of which offered defined ILR routes.
• Innovator Founder Visa: Following the 2023 reforms, those progressing from early-stage entrepreneurship could ultimately qualify for ILR after three years if they met endorsement and business performance criteria.

This structure ensured continuity for entrepreneurs while maintaining high evidential standards for settlement, focusing on business success, job creation, and sustainability.

2. Compliance Obligations and Monitoring

Endorsing bodies—whether HEIs or UKTI/DIT—played an active role in monitoring compliance throughout the visa period. Their responsibilities included:

• Maintaining up-to-date contact details for visa holders.
• Monitoring progress of the endorsed business at defined checkpoints, usually every three to six months.
• Reporting to the Home Office if the visa holder failed to maintain satisfactory progress or disengaged from their proposed business activity.

Visa holders were also bound by compliance obligations, including:

• Actively engaging in developing their endorsed business.
• Remaining in contact with their endorsing institution.
• Not breaching conditions of stay, such as working outside permitted parameters or accessing public funds.

Failure to comply could result in the endorsement being withdrawn, which would in turn lead to visa curtailment by the Home Office.

3. Lessons and Relevance for Modern Visa Routes

The Graduate Entrepreneur scheme provided a foundation for the UK’s modern business immigration model, which now relies heavily on endorsement and structured monitoring. It highlighted the importance of institutional involvement in vetting and supporting entrepreneurial migrants and informed the compliance frameworks applied in the Start-up and Innovator routes.

For graduates today, the lessons remain clear:

• Credible, well-developed business ideas are the cornerstone of successful applications under current routes.
• Maintaining strong engagement with endorsing bodies is essential for visa continuity.
• The Innovator Founder route offers a more consolidated pathway, integrating innovation endorsement, business support, and settlement eligibility.

Section Summary: The Graduate Entrepreneur Visa established principles that continue to shape UK business immigration policy. Although the route did not lead directly to settlement, it provided a bridge between study and entrepreneurship, enabling graduates to transform ideas into viable businesses while paving the way for future ILR under successor schemes. Its compliance model also set the precedent for the endorsement-based accountability system now embedded within the Innovator Founder Visa framework.

FAQs

What was the Graduate Entrepreneur Visa UK?

The Graduate Entrepreneur Visa was a UK immigration route under Tier 1 of the Immigration Rules, introduced in 2012. It allowed recent graduates with innovative and credible business ideas to stay in the UK to develop their ventures, provided they were endorsed by a UK higher education institution (HEI) or by UK Trade & Investment (later the Department for International Trade).

When did the Graduate Entrepreneur Visa close?

The route officially closed to new applicants on 6 July 2019. The closure formed part of the Home Office’s wider business immigration reform, which introduced the Start-up Visa as its replacement. Existing visa holders could extend until 5 July 2021 before switching into other eligible routes.

What replaced the Graduate Entrepreneur Visa?

The Start-up Visa replaced the Graduate Entrepreneur Visa in March 2019, offering a similar endorsement-based structure with broader eligibility. The Start-up route itself was later replaced by the Innovator Founder Visa in 2023, which now serves as the primary pathway for entrepreneurs seeking to establish and grow innovative businesses in the UK.

Did the Graduate Entrepreneur Visa lead to settlement (ILR)?

No, the Graduate Entrepreneur Visa did not directly lead to Indefinite Leave to Remain. However, holders could later switch into settlement-eligible categories such as the Tier 1 (Entrepreneur), Innovator, or Innovator Founder routes once they met the relevant business and endorsement criteria.

What options did former Graduate Entrepreneur Visa holders have after closure?

Existing visa holders at the time of closure could remain in the UK until their visa expired. They were allowed to switch to the Start-up or Tier 1 (Entrepreneur) Visa, depending on their stage of business development. Transitional arrangements provided a structured route for progression through new categories.

How long was the Graduate Entrepreneur Visa valid for?

The visa was granted for 12 months initially, with an option to extend for another 12 months (maximum of 24 months total) upon demonstration of satisfactory business progress confirmed by the endorsing institution.

Could applicants work while holding the visa?

Yes. Holders could take limited employment outside their business activity to support themselves financially, provided it did not interfere with their business development. However, they could not access public funds or work as professional sportspersons, coaches, or doctors/dentists in training unless exempt.

Why was the Graduate Entrepreneur Visa replaced?

The route was replaced to improve oversight and standardise endorsement quality across institutions. The Home Office identified inconsistencies in how endorsements were assessed and monitored, prompting the creation of the Start-up Visa with more defined innovation and scalability criteria.

Is there an equivalent route today?

Yes. The Innovator Founder Visa is the current successor route. It incorporates the endorsement principles of the Graduate Entrepreneur scheme while offering a direct pathway to ILR after three years and greater flexibility for applicants to engage in skilled employment alongside their business activity.

Conclusion

The Graduate Entrepreneur Visa represented a pivotal stage in the development of the UK’s business immigration framework. It provided an opportunity for talented graduates with credible business ideas to remain in the UK to transform their concepts into viable enterprises. The route encouraged innovation, collaboration with universities, and economic growth through entrepreneurship.

While the visa did not itself lead to Indefinite Leave to Remain, it served as a vital bridge between study and long-term business establishment. Graduates who demonstrated progress could transition to the Tier 1 (Entrepreneur), Start-up, or later Innovator routes, each offering a structured pathway toward settlement.

The scheme’s closure in 2019 reflected the Home Office’s desire for greater consistency, accountability, and measurable outcomes in endorsed business migration. Its successor routes — the Start-up Visa and the Innovator Founder Visa — retained the same core principles of innovation, viability, and scalability, while strengthening endorsement oversight and compliance.

For employers, universities, and policymakers, the Graduate Entrepreneur route remains a blueprint for balancing accessibility with integrity. It underscored the value of endorsement-based immigration and set the foundation for a modern, innovation-driven system that continues to shape the UK’s approach to entrepreneurial migration today.

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