Why only few number of IIT kids end up doing startups

A lot of IIT kids go for a further MBA, and then want to work at an investment bank. Same as many Standford, MIT, &#60;insert any Ivy league university here&#62;.<p>The reason is obvious. In India people bet their lives and career on education. Namely Medicine and Engineering. Occasional other professions are CA, MBA etc also workout. Leave the rich kids aside. For most middle class folks, it takes lifetime savings and slogging by parents to get their kids till here. And it makes 0 sense for them, to take undue risk and bet on the start up lottery.<p>Go out and take a job, or do an MBA. Save a little here and there, invest in gold, kids and real estate. You might as well retire old, have enough money to put food on your table, pay for your rent, medical expenses and die gracefully.<p>Or ride the start up lottery, take risks. Fail. If no luck after a long time, watch your peers rise to big places in corporates- marry a girl, have kids,send them to posh schools, have a car and live in a 80L 3BHK Flat. While you are stuck here, amidst losses in business, life and most importantly terrible loss in time.<p>No one likes to spend best years of their life on tasks where there is 90% failure, Especially in a country like ours battling corruption and bureaucracy.<p>Besides, start up scenario is not very glorious in India. Recently I interviewed for a Start up in Bangalore. After interviews went fine, and they were ready to offer me. We sat down for negotiations. They were neither ready to offer stocks, nor a good pay, nor perks, no incentives.<p>In short he tried to tell me to spend years of my life working very hard to make him rich, and him rich alone. For a meager salary and absolutely nothing else.<p>For incentives like these, why would anybody want to work at a start up?

IITs are highly overhyped, mass education institutes. No wonder there is very little innovation coming out of IITs, compared to Stanford and MIT, given the high quality of students.<p>I recently attended the Ubuntu launch event at the Mumbai's IIT and Dr Phatak, who now heads India's cheap tablet project did a talk. To my surprise, there was not even <i>one</i> question from the audience of bright IIT students.<p>They also have poorly executed projects like "Spoken Tutorials" <a href="http://spoken-tutorial.org/" rel="nofollow">http://spoken-tutorial.org/</a> that were presented and it was all very depressing.<p>I would not expect good quality startups from IITs.

Actually there are three kinds of people at IITs. The really good guys who are very good at academics and know a lot of stuff and love to hack. These people generally are enticed by trivial ideas. They want to contribute in a more meaningful way. Most of them go for PhD's. These people would love to have startups, but it is very difficult in India to actually have product startups. The startup culture is nothing compared to what the culture is in the US.<p>Also, most of the IITians (at least the CS and elec guys) get very challenging jobs. These jobs satisfy most of the people.<p>Then there is the second set of guys who go for Mckenzie, DB kind of jobs. These guys are good, but don't really know what to do. They are confused and take up the most safe option. There are a few here who want to do startups, but they are not able to get people who are really good and who are really enthusiastic. I guess it is difficult to do startups alone.<p>Then they are the vetti ( lazy) people who haven't really put any effort in their academics or anything else. They would be obviously not enthusiastic to do a start up and you would not want them on your team if you are starting up.<p>I guess if the startup culture on India changes a lot, then there is a fair possibility that a lots of IITians will do startups. It is changing now, and there is a fair share of IITians starting up. Flipkart is an example. A couple of my friends started this(<a href="http://www.desto.in/" rel="nofollow">http://www.desto.in/</a>)

It's all about risk vs reward. Most of the IIT kids come from middle or lower middle class families. Generally, affluent kids don't really bother with IIT as it requires a lot of hard work to get into.<p>I grew up in lower middle class and my dad worked really hard to put me through school. I did freelancing to pay for my own college. (I studied in NIT, not IIT). After I finished graduation, I wanted to earn money so that I can support my family. There is no way, I could have told my family that I want to take a chance on this start up for an eventual big exit.This was not the only major factor. I had a 'scooter' when I went to college as I couldn't afford motorbike. As a young 21 year old, I wanted to get a well paid IT job so that I can buy the bike (and other toys) that I have been eyeing for so long. When you have just graduated after working so hard, you want to reap the rewards right away. I can bet that good number of IIT grads feel that way.<p>Let's fast forward to 2012. I have a friend, who studied at IIT-Mumbai, quit a well paying job in the USA and went to Bangalore to start a data warehouse startup. Another friend decided to go to India and start his own gym. After working for 7 years in the USA, I have made some savings and I think I can now take chances. I have been working on my idea on side and see if I can quit full time job.

Don't know what IIT or FMCG stands for but...<p>one of the recurring themes on HN is that the desire to create or even work in a startup is relatively rare.

I don't know much about India, but what has always me from making the leap to entrepreneurship in South Africa is that there is no safety net if things go wrong. I wonder if a similar dynamic exists in India.<p>Yes, we have a public health service with free care in South Africa, but the state hospitals are in a shocking state. Private healthcare and health insurance is very expensive, and there is no in-between state provided insurance option (like US Medicaid). If you get sick without health insurance, you will end up in a shocking state hospital to be neglected and abused.<p>Yes, we have free public education, but the public schools are in a poor state. You don't want your kids going to a public school (some good government schools exist but they are difficult to get into if you don't live in the expensive feeder areas, and they charge substantial fees).<p>From what I've read about India, the state is fairly incompetent (more so than even South Africa), and I wonder if people choose to work for BigCo, rather than risk total catastrophe if things go wrong.<p>The level of risk in SV (or any first-world country) if things go wrong is probably an order of magnitude smaller than it would be in a third-world country.

<i>&#62;&#62; Solution is, they should have that “drive” within them. That’s the main quality they miss among others. They should realize it. </i><p>Funny that you came to an inference and termed it as a solution.<p>Do you have any pointers on improving that situation? How can you enable your fellow batchmates to realize that <i>"inner drive"</i>?

I have two disagreements with this article.<p>The first is the assumption that everybody wants "Very interesting and absorbing work" - I guess that is not very accurate, maybe most people want to feel useful or part of something bigger. However, there are lots of people that don't want to spend their time under high pressure if they can just get a regular job and enjoy the good life (you know, traveling, going out with friends, practicing a hobby).<p>And the second is: "Solution is, they should have that “drive” within them." - This is not really a solution, this may be what is missing for those people to become entrepreneurs, but telling people that they miss something is not a solution. Solution would be to come out with a method for building up drive.

Did anyone compile the data to check if the premise of the article is even true? Is the percentage of IITians starting their own businesses significantly less as compared to other engineering colleges? Is it less than all undergraduate programs? Is it less than all &#60;insert a control hypothesis&#62;? Also do the IITians working for a startup count?<p>May be it is just a perception thing? I believe that to be the case. When compared to their peer group from other engineering colleges, I am quite sure they come out favorably.<p>Disclaimer: I am an IITian and so is my partner and we are both entrepreneurs. Perhaps it is self selection at play but I know a lot of entrepreneurs in my IIT network.

"Me : I am not sure whether I can generalize." That was the clearest, most rational thought in the entire post and it is unfortunate that you did not pay heed to it.<p>1. These guys have worked pretty hard and/or are pretty damned smart which was the reason they got in there in the first place. The placement opportunities reflect exactly that and that is a pretty strong incentive for them not to launch their own startup.<p>2. Getting some working experience is a very good thing because their jobs offer them great exposure and experience, a pretty strong network of people and a clearer picture of what they are up against. While jumping off a cliff might be very brave and fashionable thing to do, it might not always be the smartest.<p>The startup ecosystem sucks in India and is nothing compared to the US (I leave room for the grass is greener effect - I don't think that is the case here). Funding is hard to come by and most business don't like dealing with startups. When the odds are that badly stacked against you, a broader network of people helps enormously.<p>3. A good %age are <i>gasp</i> actually interested in their engineering courses (IITM particularly has a healthy number &#38; tradition) and pursue further studies abroad. A few of them go on to start their own companies in the US and others contribute to startups there.<p>4. When I see the word solution, I expect to actually see a solution - not read why you think it is an inherent quality.<p>5. Never use statements like "X group never does it". It takes away whatever miniscule credibility the article has. Some obvious examples of IITians doing startups: Flipkart, Rabi Kisku entertainment (Rabi Kisku and Siddharth Nuni are about to release their movie Software Hardware kya yaaroon) and several several more. You just have to look.<p>6. Startups are not for everyone. Hardworking and smart alone doesn't cut it and it is not a bad thing that not all these guys are doing it. Doesn't mean they are wasting their life away.<p>Disclaimer: I was one of those Vetti 5 pointers at IITM, who took a 2.75l job in 2006 ago and I am running my own bootstrapped startup with my batchmate since 2011. If my startup fails (at my last stand), I don't think I will do a bootstrapped startup in India ever again and that has very little to do with the size of my cojones.

Well, I am not IITian , not even frequent commentor on HN ,I seriously think , it's the software culture that need to change . People need to change their attitude play safe. We understand working on start up idea is like walking on the edge of a cliff and you don't know when you will fall but if you have 'the drive'/guts , no body can stop us from being successful. One factor that you could think of ( may be not applicable to IITian ) the service industries are killing most of the talent in india, most of us are happy with what they are getting paid and they don't want to take the risk. And working on a startup in India is far more difficult than doing the same in US, you take example of funding , it's not as easy as US to raise funds for startup in India We can list down lot of these factors, it's true that this situation would change in few years, let's hope for the good

Unless you provide statistics as to what percentage of IIT students go fro start ups wiz a wiz MIT/Stanford, this blog lacks credibility.<p>Number of people who want to take risk are always a small fraction of any sample set.

The IITs are definitely overhyped however there is no doubt that there are some real quality minds in there. That said, there isn't a great deal of research required to understand why fresh grads in India don't do startups. It's just common sense. Here are some of the top reasons that I can think of right off the bat:<p>1. It's too risky. The reason I went to IIT is so that I can get a stable job at the end of it. Why would I throw that away now with a Startup ?<p>2. I don't know how to do it. There is no startup eco system in India. There are some changes happening in Bangalore recently but India is such a large country that if you're in another region, you are pretty disconnected from what goes on elsewhere.<p>3. I have a job lined up that'll pay me $35,000/year. A lot of IITians have jobs lined up for themselves (especially the good ones...). Why exactly would they want to invest their time and effort in a Startup - the equivalent of starting from scratch - if they can take the IIT badge that they have earned and get a head start on everyone else while climbing the corporate ladder ?<p>4. I want to pursue studying X/an MBA/something else.<p>5. NO ONE in society will understand why I didn't take the $35k/year job and decided to work for NOTHING for at-least 1 YEAR of my life. OMG! DEATH AND SUFFERING!!! Indian society is tough. If you decide to 'do a startup' your parents will hear no end of it from their relatives, neighbors and even colleagues. Most Indian kids can't put their parents through that kind of crap, unfortunately, that's how society works. Everyone will STFU once your startup makes $1M/year but until then prepare yourself for constant nagging. Basically, in India if you work for X multinational corporation then your parents get bragging rights and everyone's eyes widen with wonder... Sad, but true.<p>So in conclusion, I'd like to say that it's far more likely for people who are NOT from the IITs to work on startups in India. The risk/reward ratio for IITians is perceived to be MUCH higher because of all the options laid out in front of them already. Choice is a bitch :P

Prior to 1947, entrepreneurship is exclusively reserved to <a href="http://en.wikipedia.org/wiki/Bania_%28caste%29" rel="nofollow">http://en.wikipedia.org/wiki/Bania_%28caste%29</a> community for 3000+ years in India. Now due to globalization, lower caste community is also venturing into entrepreneurship. http:/dicci.org

Entrepreneurs need <i>protection</i> from Govt/Politicians against Big Corporations. In a 3rd world country like India, Govt/Politicians cannot afford to lose millions of taxes/party funds they get from Big Cos.

Why startups condense in America? <a href="http://www.paulgraham.com/america.html" rel="nofollow">http://www.paulgraham.com/america.html</a>