In a major contribution to the growth of startup culture in India, several IITs and IIMs have incorporated entrepreneurship into their curriculum. This includes specialised courses in entrepreneurship, innovation management and business strategy. These courses are nurturing a new generation of entrepreneurs to scale new ventures by providing practical skills, business knowledge, mentorship, networking opportunities and financial support.
The rise in student-led start-ups is bringing new hopes for diversity and creation of new roles in business. In addition to the regular curriculum, several technical universities, including the Indian Institutes of Technology and National Institutes of Technology, have introduced entrepreneurship courses to equip students with business acumen and an entrepreneurial mindset.
Satvasheel Ramesh Powar, associate professor, Department of Mechanical and Materials Engineering, IIT Mandi, said, “Students will get an opportunity to enhance their skills and understand how startups and corporations work. They will also get a perspective on companies and corporations, which will help them understand corporate expectations and make them well prepared for job interviews. During the course, students will be exposed to practical experience, opportunity to interact with startup founders and networking that will help them understand the process.”
Further increases expected
Powar, who has been teaching students the basics of entrepreneurship since 2015, has noticed a significant rise in student-led startups. “The number of startups is on the rise in India and there are already over 120,000 startups. Student-led startups have increased 2.5-3 times in the past few years, proving the growing interest in the startup ecosystem. IIT Mandi has introduced a startup apprenticeship (Young Innovator Fellowship) which provides students with 22 credits and a monthly stipend of Rs 15,000 for three semesters. With guidance from both faculty and business mentors, we expect to see a further increase. Based on their risk tolerance, some students take the startup path after paying off their debts while others start a venture while completing their BTech. Students can take an informed decision after completing these courses.”
While not all students can become entrepreneurs, pursuing an entrepreneurship course gives them leadership skills and a perspective on entrepreneurship. “In your first year of BTech, you will take up some core courses like reverse engineering and design practice basics. The design practice basics course teaches students how to design and develop products using a holistic and solution-oriented approach. In your second year, a group of six students will create a proof of concept based on a problem statement, or concept provided by industry, Indian Air Force, state government departments, faculty or institutes. For this, students will be provided with Rs 30,000. This practical experience will enable students to create a prototype solution. Students will then take up a course in design thinking to improve their product design and learn the basics of entrepreneurship to gain a deeper understanding of the entrepreneurial journey,” adds Powar.
Funding issues
Companies and government agencies have come forward to fund promising projects in recent years. “If a startup has a strong idea and a motivated and capable team, it is much easier to raise funds, whether it be grants or investments. Investments slowed down from 2023 to 2024 as companies gravitated towards mature startups and there was an emphasis on startups that have demonstrated market validation, penetration and revenue generation. Nevertheless, the startup culture is expanding, driven by government funding, success stories and growing awareness through courses and media,” he says.
Startups based on costly and complex technology testing continue to struggle to raise funding. “In contrast, simple ideas based on e-commerce models have a larger audience. Deep tech startups face challenges in terms of funding, customer engagement and infrastructure support. Extensive R&D requirements make funding difficult, there are long wait times for funds and there is little interest from venture capitalists during the development stage. Current funding options, which typically last for a year, are inadequate for deep tech startups that require longer-term support, especially clinical trials for medical technologies. The Indian deep tech ecosystem also needs more specialised incubators, accelerators and expert mentors linked to centres of excellence,” Powar adds.
A pioneer in driving innovation
IIMs have been instrumental in shaping the trends of entrepreneurship in India. They have emerged as pioneers in nurturing innovative startups through dedicated incubation centres. Centres like NSRCEL at IIM Bangalore, InFED at IIM Nagpur, IIMK LIVE at IIM Kozhikode and FIED at IIM Kashipur play a vital role in shaping the success stories of aspiring entrepreneurs. Many IIMs also collaborate with government initiatives and corporate partners to strengthen their fundraising capabilities. Programmes like Atal Innovation Mission and various state-specific startup policies provide additional funding that supplements the funds provided directly by IIMs.
“IIM Nagar Foundation for Entrepreneurship Development (InFED) has been selected as an Atal Incubation Centre under NITI Aayog’s Atal Innovation Mission. This will enable the centre to open up its facilities to external student community, researchers, faculty and small and medium enterprises for rapid prototyping,” said Bimalaya Metri, director, IIM Nagpur.
The government has also tasked InFED to implement the NIDHI (Entrepreneur in Residence) scheme, which will provide fellowships worth Rs 30,000 per month for one year to 10 people. InFED is awarding five fellowships each to women and men to pursue and realise their entrepreneurial dreams. “InFED will be distributing a seed ignition grant of Rs 5 lakh every year through the Ministry of Science and Technology. Startups in the sectors of food, agriculture and creating value from waste can apply for funds soon. Realising the entrepreneurial potential of the city, InFED has set up an incubation-cum-business facilitation centre in Wadda,” says Prof Metri.
Slowing down placement
Mahadeo Jaiswal, Director, IIM Sambalpur said, “To provide a platform to budding entrepreneurs, the institute has set up a dedicated incubator and accelerator, I-Hub Foundation. The foundation plays a vital role in nurturing student-led startups by providing them critical resources and support. The foundation also has close networks with both the government and corporates, which provide it with a reliable source of funding. Today, a large number of students prefer startups over traditional employment. The slowdown in employment may encourage students to consider starting their own businesses or joining startups, making them more entrepreneurial. A significant number of students have launched their own startups and were invited to present their ideas at the Odisha 100 Cube Startup Conclave.”
“IIM Sambalpur has successfully incubated six startups and on an average, 10 student startups are born every year. Further, the institute runs an entrepreneurship programme where we are equipping 25 weavers and handicraft artisans from Sambalpur with the skills required to scale their businesses. We help them connect with Flipkart and other platforms and teach them key elements of marketing and finance. Our one-year incubator and accelerator programme lasts for a year and includes key entrepreneurial courses like Entrepreneurial Orientation, Design Thinking, Strategic Leadership, Thinking and Decision-making, Chanakya: Strategic Lessons and Startup Mindset. All our courses have an entrepreneurial component embedded and are guided by industry experts, which helps students understand it better,” said Prof. Jaiswal.
Industry-Ready Graduates
Meanwhile, the Indian Institute of Management, Bangalore, recently introduced an online undergraduate course focusing on digital business and entrepreneurship. The program will be available online and classes will begin in September. “We expect startups as well as established companies to benefit from hiring trained undergraduates who will join the workforce as entry-level employees and be trained on the job,” said Prof. Suresh Bhagavathula, BBA DBE Program Director and Professor of Entrepreneurship at the Indian Institute of Management, Bangalore. “We expect that graduates will be able to adapt quickly to the existing culture as they have an entrepreneurial mindset. Thanks to the efforts of Shark Tank and Startup India, this culture is spreading to tier-2 cities. We should encourage problem-solving entrepreneurship and not just unicorn-raising entrepreneurship.”
