Giggs first joined United at the age of 14 in 1987 and made nearly 1000 appearances for the club in all competitions.
But new boss Jose Mourinho has chosen not to renew the former Wales international's coaching contract, a decision which ex-manager Ferguson believes will help Giggs in the long run.
"It is time Ryan stood on his own feet, got out there and accepted the challenge," Ferguson told BBC Sport.
"It is such a highly intense results industry, you need people who go into it to have a bit of steel about them, a bit of character and personality."
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