SCOTTISH graduates are to be encouraged to set up their own businesses under a new action plan drawn up by universities.

The project, backed by institutions across Scotland, aims to increase both the scale and impact higher education makes to enterprise and entrepreneurship.

Making it Happen will see universities look at becoming more entrepreneurial themselves as well as giving students more guidance and support in setting up in business.

The commitment come as Scottish higher education has driven a surge in student entrepreneurialism in recent years with the number of graduate start-ups increasing by 14 per cent in the last three years.

There has also been a 25 per cent increase in the number of self-employed and freelancing graduates over the same period while hundreds more students now take part in enterprise programmes and competitions.

Professor Pete Downes, convener of Universities Scotland, said: "Of the many different contributions that universities make to the Scottish economy, the single biggest and potentially the most transformative is through our graduates.

"Scotland’s universities are keen to produce graduates with an entrepreneurial approach and a "can do" attitude to all they take on, whether that is starting their own venture or adding value to someone else’s.

"This is not just about universities introducing concepts of entrepreneurism into our teaching, but requires students to be exposed to universities that are themselves entrepreneurial in all they do.

"A culture of entrepreneurship has taken hold in our universities and we are keen to do all we can to continue to build on this momentum."

One successful graduate start-up was founded by Christopher McCann, a former medical student from Dundee University, who set up the business Snap40.

Snap40 is a technology wristband that monitors patient information one hundred times a second and can detect very early-stage deterioration in their condition.

Mr McCann said: “There's a lot of talk about whether or not people should go to university or straight into setting up their business, but to me the two aren't mutually exclusive.

"I wouldn't have come across the idea for the wristband if I hadn't been studying medicine and university is a great way of getting ideas, skills and experience."

Angela Constance, the Education Secretary, said universities had a crucial role to play in driving forward the ambition to make young people aware of their entrepreneurial potential.

She said: “It is important we continue to encourage our students’ ambition and nurture their potential to start their own businesses.”