Its great to see this discussion on IIMA’s decision on Venturewoods. While - as the head of Centre for Innovation, Incubation and Entrepreneurship at IIMA - I am proud to have initiated and pushed this idea to implementation at IIMA, I think there is a lot to be done to promote the entrepreneurship here [being a recent grad from IIMA I know that this is a great cushion for budding entrepreneurs…helps them atleast forget the concept of opportunity cost for a change..i just wish someone could suggest a way to make students not think about their educational loan for a couple of years !!!…we would have created an entrepreneurial ecosystem at IIMA]

Although, I would have supported the idea of extending this deferral to students joining start-ups as well apart from the ones starting-up, such decision was expected to meet some resistance from students here. In a system that is largely driven by desire to get into a good job, such a process can be misused - as it was realized. A student - who fails to make it to one of the i-banks - might want to join a start-up (rather than starting-up as it is more risky), gain some relevant experience and then sit in placement later. So we wanted to eliminate selfish use of this system. (I know this is too much of thinking but then it is probably true!!) Wanna take a plunge, just take it !!!!

While 11 students decided to quit their job plans following this announcement, its real impact is expected to be seen in the next batch. The announcement came a little late, else the number could definitely have been much higher.

I must compliment the Director and placement committee at IIM Ahmedabad, to have reacted so positively to this idea and implement it within 10 days of my floating the idea.

I hope more colleges would follow suit.

I hear you but quite a few young people do not have a clue about what their real talent or passion is and they experiment and stumble into it. I think the safety valve makes it easier for people to try which is why it is good.

Roshan,

I think IIM-A extends this to all who opt out of placement when they graduate. It would be very tough for them to monitor who opted out for what reason. I hope there is no bureaucratic process to opt out and opt in.

Since most young companies cannot participate in IIM-A placement process students have to opt out to join them. One student opted out and joined a startup I was involved in even before this change.

I agree with you 100% that entrepreneurship is a team effort and that talented people who join startups with high potential could create wealth even if they have say 2% or even much less of a company.

I also think that there are very few startup entrepreneurs who have good ESOP plans and can articulate a vision that excites talent to join. Normally it is very easy to recruit top drawer talent early and it becomes tougher as the startup matures.

I want to add another suggestion: I feel we tend to glamorize the ‘entrepreneur’. If we as a nation have to move ahead, we need to encourage people to take pride in ‘team play’. There is pride in being the founder but I think large companies will only be created when lots of talented people join a team and work with single minded focus towards a common goal. This is something that happens very rarely in India. People tend to be comfortable being the founder of a company and owning 50% of a small company and not so comfortable joining a more broadly owned company where they would own 2%. As a result, we seem to have gotten into this rut where start-ups in India tend to not compensate heavily in stock and talented people are really making career decisions based on pay scales. I would love to see IIM-A and other colleges extend this privilege to not just founders of companies but also students who want to join younger companies.

By entrepreneur, I was referring to a self-starter(s) with his gut, heart and head behind a well researched idea and its flip side of risks. The Inherently intelligent and truly enterprising types. They make allowances for failure by hedging their risks within the framework of enterprise itself ( tearing the down the original plan and rebuilding it if needed ) and for such people `bailing out’ is not an option at all. It dilutes their life objective. The Romantics have been kept clearly out of our realm.

And this type certainly views its idea thro a matter-of-fact prism ( and that includes a realistic assessment of their ability to see it thro ) and will not hesitate to rip off and rebuild it if that’s what it takes to win as they are not emotionally attached to it. Yes, they could be attached in a way that they love the freedom offered by the element of creativity in startups. They go from one idea to another idea and not a job - the stuff that serial entrepreneurs are made of.

I think the notion of entrepreneurs burning their boats is romantic hype. Most entrepreneurs are very calculated risk takers. Heads I win tails I do not lose much.

Some people think they can do a startup or work in startups but then they realize that they cannot cut the mustard.

The safety valve may encourage a few more to try.

A corporate career or being a bureaucrat, CA,Doctor, Lawyer etc. are much safer careers than say being an entrepreneur, singer or sportsperson.

I do agree that for angel investors the risk that an IIT or IIM person may bail when the going gets tough is a risk which they have to assess and manage. They normally do that by having the ability to repurchase part or all the founders stock at issue price if and when the founders bail. Sometimes the investors may fire the founder if the founder is not performing.

How many times we get same opportunity while working for another employeer? While any employeer be ready to take same degree risk what I am ready for? Will I be rewarded in proportion to risk I am taking while working for start-up?

I would like to know what kind of early employee start-up in India seeking for ? In most cases they are looking for some 30+ MBA or IITain with experience in elite MNC.

I am tallking about 25 something graduate who has much to prove about himself.And here they miss people with energy, creativity, and fire in the belly to prove themself. I have enough example of exellent programmers,thinkers,doers who are wasting time in large Indian MNCs.

Why?

Becoz they are working within the limiting framework of false job security, hyped MBA, google engineering diguised as R & D.

I dont think I need to be a hot-shot marketing guy,PHD in same vague technology or financail wizard to prove my worth as start-up emplyee.
I remember an interview in which Narayan murthy saya he deals financial matters in Infosys.He is no MBA from top college.in fact he must have learned all skilss very late in company.If I know who I am , What I want , I amready do what it take to get it , i guess that is more then enough.I may sound silly but this is what I beleive.Rest is all about learing, unlearning and relearning.

I am not at all refusing your views. They are right in there on way.may work for many of us but definetly not for all.

Dont you agree that “founder” think way “early-employee thinks”?

Is that really such a great idea, this safety valve concept ?

I think it is a bit counter productive in that you don’t let go off yourself completely. It’s like saying `you’ve to run a marathon …if you feel tired midway, get into the car’. You can never give your best when you know failure doesn’t cost much. I would advise them to take up that juicy job offer early on than going after it later. Such people are never going to make it on their own anyways.

Success visits people who realize that they can’t fail too often. This inspires them to get back up on their feet quickly and pursue their ambition with stronger vigor and a true sense of purpose. That “extra dose” of energy is vital and it normally oozes out only when you sense that you are truly up against a wall and there’s no turning back.

Precisely the reason why Alexander ordered burning the boats.

You make some good points. The comments below may be helpful.

If you do not have a sterling academic track record you need to have something else that you can show. If you claim to say being a great marketing person can you put together a paper saying if you were marketing director of say “Make my trip” what would you differently. In the absence of a person being able to convince a potential employer with something else, employers will default to academic credentials.

On making it big as an early employee lets say making over 4.5 crores ( $1 million) is making it big if you are less than 35. Shannon Hermes was an Office Manager at You tube with 2577 shares and 0.06% of the company. She made $1MM +. Hong J Q was a User Interface Designer with 6013 shares and made $2.3 MM. Director of Product Development Mayrose Dunton had 8590 shares and made $3.3 MM. The principal founders made $295 million each.

If you do a startup that fails you make zero. If your startup that gets acquired for say 30 crores you may make less than 5 crores .

It is not at all clear whether you will be better or worse off doing or joining a startup.

Sanjay, Alok: I heard you recently visited IITD for a talk. Such suggestions when coming from industry have much greater impact on administration so would be great if you could voice them for the benefit of budding entrepreneurs. Prof. Kushal Sen is the faculty-incharge for placements these days and would definitely welcome such suggestions.