A survey of small and medium businesses with a turnover of less than 5 million pounds, revealed more than half of them graduate hire London, followed 40pcs 36pc in the south and in north- West. Even in the Southwest, the region with the lowest number of graduates employed in small firms, the study found 29pc of companies to take graduates. It's just below the national average of 36pc. One in five of all small businesses surveyed said they recruit at least one degree more next year, the survey of 1000 undertaken by Kingston University Business and Barclays shown.

Last year, the unemployment rate among graduates reached a record high, with stiff competition for vacancies. 10PC Some students in the UK, it received last year were unable to find work, up 8pc last year, according to the Statistics Agency of Higher Education.

Tom Wainwright, co-author and researcher at Kingston University's Small Business Research Centre, said the results showed that, contrary to common perception among students, small businesses have been able to employ a significant portion of the hand graduate work opportunities are likely to intensify the books for improvement.

He said: “There are lots of small businesses that are interested in hiring graduates. Students historically haven’t necessarily been interested in small businesses because they think of them as being the local corner shop. But in London particularly, there are lots of opportunities for graduates, in up and coming businesses like a niche web design company.”

Mr Wainwright said small firms did not have the resources to advertise graduate placements at “milkround” recruitment fairs, but they were on track to account for the biggest growth rate in graduate recruitment over the next 12 months.

He said: “We will probably see more growth coming from small companies than from large companies that are seeking efficiency gains. Large companies are trying to seek growth but without increasing their headcount. The road will continue to be rocky for a while among larger employers.”
 

 The news comes as the candidates prepare for the National Exhibition of graduate recruitment in Birmingham, which starts tomorrow and see the candidates face to face with employers. Financial companies are inclined to the largest number of unemployed graduates next year, echoing the sector to return to growth after the recession.

Gregg Carnaffan, graduate development manager at HSBC, said: “Institutions are returning to the graduate space or heavily increasing their numbers. Those from the class of 2011 who are looking at a career in financial services have more to be positive about.”

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