Why campus businesses fail and how yours can survive and thrive

In a rising-cost economy where income levels remain stagnant, university students are increasingly turning to entrepreneurship as a survival tactic and for some, a launch pad to long-term success. 

Some of the businesses in Nakuru that were started in university include Jersey Cabinet Nakuru owned by Rodgers Obora, Phone Stickers shop by Meshack Edong in Naivasha, Wilson Osiolo's film-making business, and Mark Kiplel's incubator among others

But while launching a business in campus provides a fertile ground for innovation, the transition beyond graduation poses a new set of challenges that many young entrepreneurs are unprepared for.

According to Evelynne Wanjiku, a business development consultant, university environments offer the perfect ecosystem for experimenting with ideas. 

“There’s innovation, peer support, and access to information. However, most student businesses are informal no registration, no documentation, no clear revenue structures,” she explains. 

Once students graduate and lose access to that nurturing environment, many of these ventures crumble under the weight of real-world demands.

One of the biggest barriers? Transitioning the customer base. “In campus, your target market is students and faculty. But outside, you’re dealing with a broader market facing harsh economic realities,” Wanjiku notes. 

Many students fail to plan for this shift, launching businesses without conducting adequate market research or identifying long-term customer segments.

Financial mismanagement is another hurdle where she notes that young entrepreneurs often lack literacy in budgeting, reinvesting profits, and paying themselves salaries- basic principles that more seasoned business owners understand. 

“Older entrepreneurs tend to build ventures rooted in real-life problems, often equipped with better capital, formal structures, and risk awareness,” she says.

But Wanjiku points out that this same generation tends to resist change, especially in tech-driven markets.

Despite the challenges, student entrepreneurship has its strengths: flexibility, tech-savviness, and a higher appetite for risk. 

“They fail fast and pivot faster but without mentorship, many keep failing in loops,” Wanjiku says.

To bridge the gap, she recommends early incubation and mentorship noting that institutions should establish hubs to nurture student innovations, while young entrepreneurs must learn to network, pitch ideas effectively, and seek guidance from experienced business people. 

“Don’t start a business just to make money. Start with passion, and back it with structure,” she advises. 

Wanjiku says that most youth-led startups fail before their third year.

However, the message is clear: Campus is a great place to start but only strategic planning, mentorship, and adaptability will determine if the business survives life after graduation.