Do IIT/IIM Graduates Primarily Become Entrepreneurs?

There’s a common perception that most graduates from the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) turn into entrepreneurs. However, this belief is often oversimplified and misguided. In this article, we will delve into the truth behind this claim, highlighting the various career paths chosen by IIT and IIM alumni, and the reasons behind their entrepreneurial ventures.

Confidence as a Driving Force

One of the main reasons why many IIT and IIM graduates do indeed consider entrepreneurship is their confidence. These individuals have a track record of excelling in highly competitive environments such as the IIT entrance exams or the entrance exams for premier business schools. This confidence, alongside their technical and business skills, propels them towards starting their own ventures.

Understanding the Real Numbers

However, it is important to understand that the majority of IIT and IIM graduates do not turn into entrepreneurs. According to recent data, only a small percentage of these graduates choose to start their own businesses. In fact, according to a report by the Economic Times, approximately 70% of IIT and IIM graduates choose to enter the job market or pursue further studies, rather than starting their own businesses.

IIT Graduates and Entrepreneurship

When it comes to IIT graduates, the majority tend to pursue diverse career paths. According to a survey conducted by Livemint, the most preferred sectors for IIT graduates are:

Research and Development IT and Consulting Finance and Banking Startups and Entrepreneurship

It is worth noting that while many IIT graduates do opt for startups, it is a minority. The decision to venture into entrepreneurship is largely influenced by factors such as personal interest, resource availability, and market conditions.

IIM Graduates and Career Paths

IIM graduates, on the other hand, have a wide range of career options. According to an article by Entrepreneur India, the most common career paths for IIM graduates are:

Consulting Finance and Banking Investment Banking Startups/Entrepreneurship Public Sector

The report further highlights that while a significant number of IIM graduates do embark on entrepreneurial ventures, the proportion is still relatively small compared to their total number of graduates.

Where Do the Rest Go?

So, if the majority of IIT and IIM graduates do not become entrepreneurs, where do they go?

Corporate Sector

Many graduates choose to join the corporate sector. They are attracted to the stability, benefits, and opportunities for career growth that large corporations offer. According to a report by India Today, approximately 40% of IIT and IIM graduates apply for jobs in the corporate sector.

Further Studies

Other graduates choose to further their education. Pursuing research or higher degrees allows them to deepen their expertise and adds value to their professional profiles. According to a survey by Times Higher Education, a significant percentage of IIT and IIM graduates opt for higher studies.

Government Jobs

Some graduates choose to pursue government jobs, particularly in public sector units. These jobs offer stable salaries and benefits, making them an attractive choice for many.

Entrepreneurship: A Small but Significant Minority

While the majority of IIT and IIM graduates may not become entrepreneurs, those who do are often successful. Their educational background and confidence are significant assets that help them in their ventures. However, the proportion of graduates who choose to start their own businesses is still relatively small.

Success Stories

Many successful entrepreneurs have emerged from IIT and IIM campuses. These include the founders of popular startups, successful business leaders, and tech innovators. Some notable examples include:

Tejas Dhamankar, Co-founder of nearly 18Km, a telecom solutions start-up. Abhishek Gupta, Co-founder of Freshmart, a grocery delivery start-up. Kunal Bhattacharya, Co-founder of Zealots Technologies, a software developer platform.

These success stories often draw media attention and inspire aspiring entrepreneurs. However, it is important to acknowledge that these are not the norm.

Why Do Some Choose to Start Their Own Businesses?

The decision to become an entrepreneur is influenced by various factors, including personal passion, market opportunities, and access to resources. Here are some common reasons why some IIT and IIM graduates choose entrepreneurship:

Personal Passion and Interest

Many graduates have personal interests or passions that drive them to start their own businesses. They are excited about solving real-world problems or creating innovative solutions, and entrepreneurship offers them the platform to do so.

Market Opportunities

The tech and startup ecosystem in India has seen significant growth in recent years, providing numerous opportunities for entrepreneurship. The government's initiatives, such as the Digital India and Startup India programs, have further boosted the startup landscape, making it more appealing for graduates.

Access to Resources

IIT and IIM campuses often have incubators and support systems in place to help students and alumni start their own businesses. These resources include mentorship, funding support, and networking opportunities. Graduates who are equipped with these resources are more likely to venture into entrepreneurship.

Advice for Aspiring Entrepreneurs

If you are an IIT or IIM graduate considering entrepreneurship, here are some pieces of advice:

Do your research: Understand the market and industry trends. Build a strong team: Surround yourself with individuals who complement your skills and expertise. Secure funding: Explore various funding options, including angel investors and venture capital. Develop a solid business plan: Clearly outline your vision, objectives, and strategies.

Entrepreneurship is challenging, but with the right mindset and resources, it can be a rewarding career path.

Conclusion

In conclusion, while many IIT and IIM graduates do consider entrepreneurship, it is not the primary career path for the majority. The decision to become an entrepreneur is influenced by a combination of personal passion, market opportunities, and access to resources. While the success stories of entrepreneurs from IIT and IIM campuses are inspiring, it is crucial to recognize that the majority of these graduates choose other career paths, such as the corporate sector, government jobs, or further education.

The truth is that IIT and IIM graduates are versatile and capable of excelling in multiple career paths, and their entrepreneurial ventures are a testament to their leadership and innovative spirit.