Campus placements continue to be the safest option for outgoing graduates. Experts and students tell Darpan Mago what stops them from becoming boldly entrepreneurial
By the time he finished his stint at Harvard University, Mark Elliot Zuckerberg, the founder of Facebook, had already become a global icon. The miraculous success of social networking website opened doors of fortune for the young boy who went to become an instant inspiration for millions of his ‘friends’ in Internet world. Most students dream of similar success which, unfortunately, is rare. There are handful of successful start-ups, especially in India, which could be dubbed as the perfect ‘role model’ for the budding brains. In fact, the data over the years present some shocking insights. In 2012 alone, out of 379 technology product start-ups, 87 were shut in the same year. Some 136 e-commerce websites had folded in first half of 2013. Possibly that’s the reason why campus placements have gained back its lost attention.
The buzz around the start-ups might have painted a rosy picture but the truth is that campus crowd still prefers campus placements. “What most students want from an MBA degree are placements”, says Parthsarthi Gupta a student of Indian School of Business (ISB), Hyderabad. As the trend suggests, students of premier institutions are the most hesitant in launching their own enterprises. last year, only one student from IIM Raipur opted out of the placement process to start his own venture. From IIM Kolkata, four students availed deferred placement option to begin their entrepreneurial journey. “Most of them are taking MBA degrees as a ‘passport’ for good career, while silencing their creativity along the road,” says Nadiya Marakkath, assistant professor of social sciences. Taking in account all the students who have graduated from Indian School of Business (ISB) institutions since year 2001, only five to six per cent attempted something of their own. Sriram Gopalkrishnan, director of marketing communications at ISB says that a lot of their students have also taken up placements and later started their own ventures. He expresses that this figure is dynamic in nature and difficult to trace.
Society constraints
An individual’s background and beliefs play an important role in deciding the future course of action. Kumar Bijoy, a professor at Shaheed Sukhdev College of Business Studies (SSCBS), DU, points out that that many undergraduate students do not make sincere attempts at start-ups. They merely mention it in their CVs for securing a competitive placement. “It is a self-defeating exercise and mockery of the very entrepreneurial spirit. The ideas here are not strong and people are generally not dedicated”, adds Bijoy. life of an Indian student usually starts after college with the whole society pressurising him to get a good salary package and then finding a suitable wife. The aspirant might have difficulties adjusting to this scenario but is somehow expected to conform. “Some societal beliefs are ironically the deterrents. We are never taught to stand up and question”, says Shreya Tandon, an associate psychologist working with Centre for Child and Adolescent Well Being (CCAW) in Delhi. Due to traditional obligations, society is a creed of people who have less risk taking ability and a family baggage that only discourages to take such endeavours. “I was confident of my idea and wanted autonomy to execute it. We never looked for government support due to a general perception that one mustn’t depend on the authorities. The pace at which I wanted to work is not often reciprocated by the government. We’re a team of 10 people who have invested nearly Rs 20 lakh from family and friends,” says Mohit Maheshwari, the co-founder of a startup Adloc, which started in the October 2013.
Social entrepreneurship
Surprisingly, the government till date has no defined policies for social entrepreneurship. At the private front, there is dearth of institutes like Tata Institute of Social Sciences (TISS) which impart knowledge on social entrepreneurship. “The Indian law doesn’t recognise social entrepreneurship. We have to work in the existing framework of laws defined for NGOs and other private limited companies. It must be understood that social entrepreneurship is altogether a different entity requiring a new framework. After all, the legitimacy of a social enterprise is only recognised by the legal framework. Such differentiations are well understood in countries like US and UK, where these companies are known as ‘benefit corporations’ and given special tax rebates. The laws that exist in these countries give entrepreneurs a legal protection to serve a societal goal that is higher than mere profits,” says Nadiya Marakkath.
Support system
As the fee structure of IIMs remains fluctuating, students are caught in the circle of educational loans. Dhruv Shah, an IIM Bangalore alumnus, informs that when one already has an overhead liability, the first priority is to get free from all debt. He adds that a good placement not only becomes a panacea for loans but defers other obligations which drove student to MBA programmes in the first place. Government education system from primary to post graduate level is pegged at peanuts but when it comes to an MBA degree, the fee structure skyrockets. Some say it is as per the ‘international ways’ but a half-baked application of these ‘ways’ is also not a dish tasting good. This bias needs to be understood and the disparity must be curtailed by the authorities. Till date, there is no single window clearance facility for entrepreneurs heading out to explore Indian markets. The banking sector in India is not supportive to the budding entrepreneurs.
It is a matter of concern that without enough educational, political and economic freedom we are only making a herd of ‘package mongers’ and less of value creators.
Emerging start-ups
There are some who have taken the ‘unbeaten’ path to fulfill their passion and dreams. Chaayos is one such example started by IIT gradates. With an institutional investment of Rs 20 lakh, Chayos is the ‘Indian’ answer to all the international coffee chains that have been mushrooming all over the world. “I am an optimistic person and I feel the entrepreneurial trend in India is picking up. I see many good ideas around. My case is little ironical. Before this I have had three ideas which I presented to my father. Though my father himself had quit his government to start off his own enterprise, he always rejected my ideas just for the sake that I had ‘achchi naukri’ (well paying and secure job) at hand”, says Nitin Saluja, the co-founder of Chaayos. He talks of many challenges while starting his venture. “People try to pull down. One of the major problems is that your own employees don’t trust you as there is always monetary insecurity. The first three offer letters I sent were never responded. Sometimes people fear new companies.”