Although the majority of todays entrepreneurs come from IITs and IIMs, this does not imply that only these prestigious institutions can generate successful entrepreneurs. Before we look at the non-IIT/IIM entrepreneurs that have built a name for themselves, lets look at why this ratio exists. You cant become an artist just by enrolling in an art class if you dont have the ability for it, and you cant become an entrepreneur just by getting into one of these top institutions. To attain your goal, you must possess entrepreneurial characteristics and desires.
Every year, approximately 200 IIM graduates pursue entrepreneurship, while over 1,600 IIT students do so. This is one of the reasons why India creates more entrepreneurs with an IIT degree than with an IIM degree, according to statistics. In contrast to IIMs, which teach students how to operate a business, IITs, which teach students to become engineers and scientists, end up being the breeding ground for fledgling start-ups. Management institutes exist to help people manage their businesses, not to start new ones. Engineers are meant to create products and innovate. They know how to take chances, but IIM grads are simply taught how to analyse and then take a calculated risk," says Mahesh Gupta, Chairman, Kent RO, an IIT Kanpur graduate who graduated in 1975.
Entrepreneurship fits well with IIT students because it is a high-risk vocation. They have little to lose just after graduation or within a few years of starting a career because they are less likely than IIM students to have to repay large bank loans. As a result, IIM students willingness to take risks decreases. Most IIT and IIM colleges have an entrepreneurship unit, student-run initiatives to promote entrepreneurship or courses on company management, but no primary courses.
Apart from the fact that IITs produce a bigger number of entrepreneurs than IIMs, which provides IITs with an advantage, IIMs can do a few things to stay competitive. The best thing the government can do is make IIM education free for those who want to pursue business. Technology will be the leading category in developing business opportunities for young entrepreneurs, therefore IITs will continue to empower creative ideas. IIMs will struggle to create more entrepreneurs or, at the very least, better CEOs than IITs until the technology becomes more widespread and consumers become more efficient in their uptake.