Tier 1 Graduate Entrepreneur Visa

The Tier 1 Graduate Entrepreneur Visa was once a dedicated UK immigration route designed to attract international graduates with credible, innovative business ideas. It allowed eligible applicants to remain in the UK to establish their businesses after graduation. While it served as a gateway for entrepreneurial talent, the route has now closed, and no new applications are accepted. Understanding its structure and closure is important for those researching UK immigration history or seeking alternative visa routes.

What this article is about
This article provides a detailed review of the Tier 1 Graduate Entrepreneur Visa, explaining what it was, how it worked, and why it was closed. It also outlines the visa’s original eligibility criteria, benefits, and the government’s reasons for replacing it. For those still interested in starting a business in the UK, the guide examines current alternatives, including the Innovator Founder visa, and lessons learned from the Tier 1 Graduate Entrepreneur scheme.

Section A: Overview of the Tier 1 Graduate Entrepreneur Visa

The Tier 1 Graduate Entrepreneur Visa was part of the UK’s former Points-Based Immigration System, created to encourage talented international graduates to establish businesses in the UK. It was introduced to complement the UK’s economic growth strategy by tapping into the skills and innovation of recent graduates from UK universities. While it was not a settlement route in itself, it provided a stepping stone toward longer-term visas for entrepreneurs.

1. Purpose and introduction of the visa

The route was launched to retain international graduates who had developed viable and innovative business concepts during or after their studies in the UK. It was designed for those who had the ambition and capability to establish a business that would contribute positively to the UK economy, without the immediate need for large investment funds.

Unlike the broader Tier 1 Entrepreneur route, which required significant investment capital, the Graduate Entrepreneur visa targeted early-stage entrepreneurs, offering them time to develop and grow their ideas into scalable businesses. It was viewed as a bridge between academic achievement and commercial enterprise.

2. Key eligibility criteria before closure

To apply for the visa, applicants had to secure an endorsement from an authorised UK higher education institution (HEI) or from UK Trade & Investment (UKTI). This endorsement was based on an assessment of the applicant’s business idea, including its innovation, viability, and scalability.

Other requirements included:

• Holding a recognised UK degree
• Meeting English language requirements
• Demonstrating the ability to support oneself financially during the stay
• Not falling under the general grounds for refusal under UK immigration rules

Endorsements were limited in number each year, and universities had specific quotas. This meant competition for endorsements could be intense, particularly at institutions with strong entrepreneurial networks.

3. Benefits of the visa when active

The visa granted permission to stay in the UK for an initial period of 12 months, extendable by a further 12 months. During this time, holders could work on their endorsed business idea and take supplementary employment to support themselves.

Although the visa itself did not lead directly to indefinite leave to remain (ILR), successful business development could enable the visa holder to switch into other visa categories — most commonly the Tier 1 Entrepreneur visa — which did offer a route to settlement.

Section A Summary
The Tier 1 Graduate Entrepreneur Visa was an important pathway for international graduates with innovative business concepts, providing the opportunity to build a business in the UK with institutional backing. It offered flexibility and support for early-stage entrepreneurs who did not yet have significant investment capital, acting as a launchpad to more permanent immigration routes.

Section B: Closure of the Tier 1 Graduate Entrepreneur Visa

The closure of the Tier 1 Graduate Entrepreneur Visa marked a shift in the UK’s approach to attracting and retaining entrepreneurial talent. While the route served a clear purpose for several years, policy changes under the Home Office and the broader review of the Points-Based Immigration System led to its withdrawal. The government sought to streamline business immigration routes and align them with more stringent innovation and investment requirements.

1. Closure date and transition period

The route closed to new applicants on 6 July 2019. This date marked the final opportunity for eligible graduates to apply under the scheme. However, transitional provisions were in place for those already holding the visa or who had received an endorsement before the closure date. Existing visa holders could still apply for extensions until 5 July 2021 or switch into other eligible categories, subject to meeting the relevant requirements.

The extension window allowed individuals to continue building their businesses without abrupt disruption, but no fresh endorsements were issued after the closure date.

2. Reasons for closure

The closure reflected the government’s strategic decision to consolidate business-related visa categories. The Tier 1 Graduate Entrepreneur Visa was replaced primarily by the Start-up Visa, introduced in March 2019, which aimed to broaden eligibility beyond UK graduates while maintaining an endorsement process for innovative, viable, and scalable business ideas.

Feedback from endorsing bodies suggested that the Graduate Entrepreneur scheme was relatively narrow in scope, as it excluded talented entrepreneurs without UK qualifications. The replacement Start-up Visa also aligned more closely with the government’s long-term aim of increasing productivity and economic competitiveness through innovation-led business immigration routes.

3. Impact on existing visa holders at the time

For those already on the visa when it closed, the impact was largely managed through transitional arrangements. Holders could:

• Apply for a 12-month extension under the same category (if still within the permitted timeframe)
• Switch to the Tier 1 Entrepreneur Visa (if meeting the relevant criteria)
• Switch to other eligible work or business routes, such as the Skilled Worker visa, depending on their circumstances

While the closure did not invalidate current visas, it did remove the possibility for new graduates to use this specific pathway, forcing them to consider alternative routes such as the Start-up or Innovator visas. Switching had to be completed before the expiry of the Graduate Entrepreneur leave, as overstayers were ineligible for transitional arrangements.

Section B Summary
The closure of the Tier 1 Graduate Entrepreneur Visa in July 2019 was part of a wider overhaul of UK business immigration routes. The government sought to replace it with a more inclusive system through the Start-up Visa, expanding eligibility to a wider pool of entrepreneurs while maintaining a focus on innovation and scalability. Existing visa holders were given transitional options, but the withdrawal signalled a clear policy shift toward fewer, more targeted business immigration categories.

Section C: Alternatives to the Tier 1 Graduate Entrepreneur Visa

When the Tier 1 Graduate Entrepreneur Visa closed, the UK government introduced alternative immigration routes aimed at supporting innovative business creation while widening the scope of eligible applicants. Although these replacement visas preserved the emphasis on viable, scalable, and innovative business ideas, they brought changes in eligibility criteria, endorsement processes, and progression to settlement.

1. Start-up visa (and its closure)

The Start-up Visa replaced the Graduate Entrepreneur route in March 2019 and ran until its closure to new applicants on 13 April 2023. It removed the requirement for applicants to hold a UK degree, opening the route to talented entrepreneurs from outside the UK’s higher education system.

Applicants still needed endorsement from an approved UK endorsing body — such as a higher education institution or a business organisation — based on the innovation, viability, and scalability of their proposed venture. The visa was granted for up to two years and did not require initial investment funds.

While it offered a valuable platform for developing a business in the UK, the Start-up Visa was non-extendable. Entrepreneurs wishing to continue operating after two years had to switch into another category, typically the Innovator Visa (later replaced by the Innovator Founder Visa).

2. Innovator Founder visa

The Innovator Founder Visa, launched on 13 April 2023, is now the primary UK immigration route for entrepreneurs wishing to establish and run innovative businesses. It combines elements of both the Start-up and Innovator visas, removing the previous £50,000 investment requirement for new businesses.

Applicants must:

• Secure endorsement from an approved endorsing body
• Present a business idea that is innovative, viable, and scalable
• Play a key role in day-to-day business operations

The Innovator Founder Visa offers an initial stay of three years and provides a direct route to indefinite leave to remain (ILR), making it attractive for entrepreneurs seeking permanent settlement in the UK.

3. Other potential visa options

While the Innovator Founder Visa is the most direct replacement for the Graduate Entrepreneur route, other visas may suit entrepreneurs depending on their circumstances:

• Skilled Worker visa – for entrepreneurs who take employment with an eligible UK sponsor while developing a business
• Global Talent visa – for recognised leaders or emerging leaders in fields such as science, engineering, technology, and the arts
• Scale-up visa – for individuals joining rapidly growing UK businesses in eligible roles, with potential scope to develop entrepreneurial activities alongside employment

These routes differ in their criteria and scope, but each can provide a lawful pathway for entrepreneurial activity within the UK immigration framework.

Section C Summary
The closure of the Tier 1 Graduate Entrepreneur Visa led to a reconfiguration of the UK’s business immigration routes. While the Start-up Visa was its direct successor, the Innovator Founder Visa is now the main route for entrepreneurs aiming to establish innovative businesses in the UK, offering flexibility and a direct path to settlement. Other work-related visas may also be suitable, depending on the applicant’s skills, business plans, and long-term objectives.

Section D: Lessons from the Tier 1 Graduate Entrepreneur Visa

The Tier 1 Graduate Entrepreneur Visa provides a useful case study in how immigration policy evolves in response to economic needs, applicant demand, and administrative feedback. While the route achieved some success in retaining talented graduates, it also revealed limitations that shaped the design of subsequent visas. For policymakers, applicants, and endorsing bodies, there are several key lessons to take from its operation and eventual closure.

1. What worked and what didn’t in the scheme

One of the strengths of the scheme was its focus on early-stage entrepreneurship without demanding substantial upfront investment. This allowed talented graduates with limited funds to pursue their ideas. The endorsement model also created a quality filter, ensuring that only candidates with genuine, credible business plans were approved.

However, the scheme’s reliance on UK degrees excluded many promising entrepreneurs who had studied overseas or gained business experience outside the UK academic system. The limited list of endorsing bodies and quota restrictions at universities meant some high-potential applicants were unable to access the route. The short two-year limit also created pressure for rapid business development, which was not always realistic.

2. Policy takeaways for current and future applicants

A key takeaway for entrepreneurs is that UK immigration routes for business are rarely static. The Graduate Entrepreneur Visa was replaced first by the Start-up Visa and now by the Innovator Founder Visa — each with different eligibility rules, endorsement structures, and settlement pathways. Applicants must be ready to adapt to policy shifts and plan for alternative routes where necessary.

Another lesson is the importance of building a business plan that clearly demonstrates innovation, viability, and scalability. These three criteria have remained central across all modern UK entrepreneur visa categories and are likely to continue shaping application assessments in the future.

3. Advice for entrepreneurs considering the UK market today

For prospective entrepreneurs, the UK remains a competitive but rewarding market. While the Innovator Founder Visa offers a longer initial grant of leave and a direct path to settlement, it still requires robust preparation, endorsement, and a long-term operational commitment in the UK.

Entrepreneurs should:

• Research approved endorsing bodies thoroughly
• Build a strong network within the UK business and innovation ecosystem
• Prepare a business plan that meets immigration and commercial viability standards
• Consider alternative visa options as part of a long-term immigration strategy

Section D Summary
The Tier 1 Graduate Entrepreneur Visa was a valuable pathway for early-stage business founders, but its limitations highlighted the need for broader eligibility and more sustainable timelines. The evolution to the Innovator Founder Visa reflects lessons learned — particularly the value of inclusive eligibility, longer stays, and direct settlement routes — while retaining the endorsement system to maintain quality and innovation in UK business immigration.

FAQs

1. What was the Tier 1 Graduate Entrepreneur Visa?

The Tier 1 Graduate Entrepreneur Visa was a UK immigration route for international graduates with credible, innovative, and viable business ideas. It allowed them to remain in the UK for up to two years to develop a business, provided they had an endorsement from a UK higher education institution or UK Trade & Investment.

2. Why was the Tier 1 Graduate Entrepreneur Visa closed?

The route was closed as part of the government’s overhaul of business immigration to streamline categories and widen access beyond UK graduates. It was replaced by the Start-up Visa in March 2019, which maintained an endorsement model focused on innovation, viability, and scalability.

3. When did it close and were there transitional arrangements?

The route closed to new applicants on 6 July 2019. Transitional arrangements allowed eligible existing holders to apply for extensions until 5 July 2021 or to switch into other categories before their existing leave expired.

4. Can I still apply for the Tier 1 Graduate Entrepreneur Visa?

No. The visa is closed to new applications and cannot be revived. Only individuals who already held the visa at the time could extend within the transitional period or switch into another category before their leave expired.

5. Which route should entrepreneurs use now?

The Innovator Founder Visa (launched on 13 April 2023) is now the main route for entrepreneurs establishing innovative businesses in the UK. The Start-up Visa that initially replaced the Graduate Entrepreneur route closed to new applicants on 13 April 2023.

6. What if my Graduate Entrepreneur leave has expired?

Once leave expired, it could not be extended. Applicants needed to have switched into another route before expiry, where eligible. Overstayers could not benefit from transitional arrangements.

Conclusion

The Tier 1 Graduate Entrepreneur Visa was an important route in the UK’s former business immigration framework, designed to retain talented graduates and support them in building innovative businesses. Its focus on endorsement and early-stage entrepreneurship made it accessible to those without significant capital, but its narrow eligibility criteria and limited duration ultimately led to its replacement.

Since its closure in July 2019, the UK has moved toward more inclusive and consolidated routes, with the Innovator Founder Visa now offering a direct path to settlement for qualifying entrepreneurs. While the Graduate Entrepreneur scheme no longer exists, the principles it embodied — innovation, viability, and scalability — remain central to the UK’s approach to attracting entrepreneurial talent.

For those considering the UK as a base for business, understanding the legacy of this visa provides useful insight into the evolution of immigration policy and the current options available. By learning from the successes and shortcomings of past routes, today’s entrepreneurs can prepare stronger applications and develop more sustainable business strategies in the UK market.

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Gill Laing

Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law. Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.

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