B-School fee Hikes will affect Entrepreneurship
Many of the Indian Business Schools have planned for fee hikes, some like IIM-A by as much 200 Percent. One of the areas that gets affected due to this is the reduction in the number of people opting out placements in order to start their own venture. Here is how they are linked.
1) A fee hike would mean that a bigger loan needs to be taken from the bank.
2) At the end of 2 years when the time to start repaying the loan comes, you need money, and entrepreneurship ventures would take some time before they start to generate revenue.
3) A salaried job, on the other hand allows you to start repaying your loan immediately.
4) Hence, people would be a lot more cautious before opting out of the placement process.
IIM-A, lst year, had about 10 people opting out of placements to start their own venure(s). It will be interesting to see how many do so in the class of 2008-10 (the first batch to bear the brunt of the steep fee hike)
Labels: Entrepreneurship, IIM
posted by Ashwin @ 3:01 AM
4 Comments:
I agree...
but I do believe that hype around an MBA is not as beneficial for entrepreneurs as it would be for those who want to join a corporate.
Why would someone who has entrepreneur idea etc required to start a venture would do an MBA in the first place,people who are undecided , waiting for ideas or those who later decide that its better to be self employed decide on entrepreneurship later.. again lots of variables here..but your analysis is correct.
These are some of the advantages I see for a budding entrepreneur to join a B-School
1) 1 or 2 years of business education will give you an overview of Business aspects, which helps if you have had no prior background in managing a business
2) You will interact with bright students and experienced professors, so, you will get new ideas, see different viewpoints, etc
3) People trust you when you are part of a brand. For eg. an IIM graduate might find it easier to raise money easier than someone who isn't part of a brand (but only initially, once the venture is established, the brand would not matter)
people who have to take their business [like family business] to a new level might take that chance while their business is being looked upon by someone in their family...
some1 starting a complete new venture might rather invest 2 years and the money in getting the business setup and network with only those whom he requires to start .. mostly not with all the bright people to get a diff view point..
as far as raising funds is considered banks require you to give financial mortage and security ..only MBA degree would not get you a loan ..though it would add an advantage when you talk to bank manager but even he has to follow the rules and get security etc,
anyways the possibility you mentioned can be true ..but it would be rare
Hey hii Ashwin....I m going for mba n wanna know that is there any short term(Crash Course for 2-3 months) mba course available in pune....kidly avail me the name of institutes so that i can register...your concern in this matter will highly obliged...thanxx..bbye
my email id is : kumar.nilesh86@gmail.com
Post a Comment
<< Home