BY the time Emma Atkinson graduated in 2007, she had already set up her business in one of the units run by the University of Derby in Bank's Mill Studios.

She was given a £5,000 bursary by the university to support her fledgling business and she used the final year of her degree to carry out the research that led to her setting up her boutique, Ribbons.

She became one of more than 200 students each year who choose to stay and work in Derby after they graduate, putting money back into, and stimulating, the economy.

Almost three years later, Emma, from Ashbourne, has a thriving womenswear business in Friar Gate.

As well as buying in goods, she also interacts with other businesses in the area by ordering in lunches and refreshments for customers when required.

Emma said: "This is something I always wanted to do but I wouldn't be where I am now if it wasn't for the help I received from the university."

This is one of the ways the university indirectly boosts business in Derby, according to the report – University of Derby's Impact On The Local Economy – out today.

Through a series of grants, the creation of business incubator units for new businesses, research projects and purchasing the lease of the former Derby Playhouse to create Derby Theatre, the university points to the fact that, indirectly, it brings substantial investment into the city.

Graduates such as Emma are estimated to be worth about £2.2m to the local economy because they settle in the area after completing their courses.

A survey in 2008 revealed that 222 graduates not originally from Derbyshire stayed on in the county to live and work.

The report is able to break down the £152.5m the university claims to contribute to the economy of Derbyshire directly through supply contracts, staff wages, student spend and building projects.

University vice chancellor, Professor John Coyne, said: "The amount that the university contributes to the local economy is very significant.

"This is both through its day-to-day and long-term operations and the presence of its thousands of students. Much of this happens behind the scenes and is largely unreported.

"We felt that a study, taking a brief overview of our impact on the local and wider economy, was long overdue.

"It is in addition to the annual accounts produced every year and made publicly available."

The headline figures include £17.2m spent on suppliers and outside contractors from July 2008 up to August 2009.

These are ongoing contracts with companies such as Trent Buses, Buxton and High Peak Security Services Ltd, asphalt contractors BDP Surfacing Ltd and Derbyshire County Contract Flooring Ltd.

The university has calculated that a massive £83.5m goes into the local and wider economy through taxes and spending because of the 1,595 people it employs.

This is combined with the 1,642 additional full-time jobs created elsewhere because of the university's presence, using a national calculation that estimates for every 100 full-time jobs created in a university 103 are generated elsewhere.

John Cadwallader, chief executive of Derby's regeneration company Cityscape, said the university is of inestimable value to the area.

He said: "Not only is it bums on seats in pubs and clubs but it is of immense attraction to retailers, property dealers and investors to the city generally. It is one of the big success stories of the last 20 years."

The report reveals that the spending power of students is not to be ignored and is estimated at £33.8m a year.

Out of the 9,930 full-time undergraduate students, 2,215 live in halls of residence paying rent to the university and 2,868 live at home, but a further 3,895 live in rented accommodation run by local landlords.

This means a total of £13.6m is spent on rent and associated bills in the city. Add to this an estimated 4,107 students spending an average of £204.18 a week, giving a total of £20.1m annual spending.

It is estimated that, on average, students spend £225.60 a year on books, £708.48 on groceries and £675.60 on "socialising", with a further £384.96 on daily travel.

Katy Moran, 46, of Long Eaton, has four houses in Derby in the Stockbrook Street area that are let to students. She said: "Early in the 1990s, I realised that student numbers were expanding and property was relatively cheap at the time.

"With my then partner, I managed to buy a couple of houses that were let to students and, because these were successful, have acquired two others since.

"For many landlords like me it has been quite lucrative to have a student demand for homes in the city."

The report points out that the figures do not include parent and family visits to see students, which incur restaurant and pub costs, or one-off costs associated with graduation ceremonies.

Moss Bros suit hire in Derby estimates in the region of £1,200 is generated from the annual university graduation ball.

A major refurbishment and rebuilding programme is contributing a further £79m into the economy over the next five years, at an average of £15.8m a year.

This will benefit the region's construction industry, including projects such as the refurbishment of the Britannia Mill campus, in Mackworth Road, building a new corporate centre in Nun's Street, and re-cladding the towers on the main Kedleston Road campus.

John Dowson, head of policy at the Derbyshire and Nottinghamshire Chamber of Commerce, said: "Having a first-class university located here no doubt has a massive positive impact on the local economy each year, but it is not just financial benefits that the University of Derby brings to the city.

"Each year, the university makes a significant contribution to the rich seam of skills, creativity and innovation in the city, which not only encourages entrepreneurship and supports the city's key industries, but also plays a vital role in attracting new businesses to the area."

Figures used in the report were drawn from the university's own statistics and those produced independently by Government departments, the Higher Education Funding Council for England, the Higher Education Statistics Agency, the National Union of Students and East Midlands Development Agency.

John Forkin, director of Marketing Derby, said that in just 18 years the university had become an integral part of the city.

"Not just financially, but as a key provider of skills needed for a city with hi-tech businesses such as Derby.

"Acquiring the theatre was innovative and the number of graduates staying in the city is rising.

"It would be hard to imagine the negative impact if the university was not there."