Campus interview? No Thanks!

Deepesh Agarwal (30), Sunil Kaura (27) and Ankur Arora (26) have just graduated from Indian School of Business (ISB). This trio will go on to do something pretty different from what most of their classmates will opt for. They will soon be starting a business of their own. Agarwal intends to develop an application that will, through the use of a mobile phone, enable people to share transportation on a real-time basis. For instance, if you are leaving for the airport and would like to know if there are others in your locality who are headed there, all you need is a cellphone to find that out. Many mailing groups and chat groups have tried furthering the cause of shared transportation, but have not met with success. By using a mobile phone-based application, Agarwal intends to actually reduce traffic as well as pollution on the roads.

Going solo Almost all the top engineering colleges and B-schools are seeing an enhanced interest in students willing to start a business on their own Real businesses get built in bad times. Cisco Systems, Apple, Oracle and Hewlett-Packard are some examples The global meltdown has reduced opportunity costs and made entrepreneurship more attractive But challenges remain, funding being the main obstacle

Kaura and Arora are working towards setting up state-of-the-art childcare centres, which will not only offer best hygiene and environment standards but also interface with technology to create an all-new childcare system in India. Agarwal, Kaura and Arora may be the exceptions at ISB, but they represent a large number of engineering and management graduates who are giving jobs in the corporate sector a go-by and, instead, taking to entrepreneurship, despite the downturn. Or, perhaps, because of it.

“The downturn has made jobs scarce, moderated runaway salaries and increased uncertainty with regard to employment. These factors have together made starting a business of your own a relatively attractive option,” explains Sushanto Mitra, CEO, Society for Innovation and Entrepreneurship (SINE), IIT Bombay. SINE extends support to technology-based entrepreneurship.

“There is an increasing trend in the last few years among students wanting to start on their own. Last year, 50-odd students from IIT Bombay opted for entrepreneurship. This year, I expect a larger number,” he says. The new-found zeal isn’t restricted to Mumbai. Says Ajit Rangnekar, Dean, ISB, Hyderabad: “Our Wadhwani Centre for Entrepreneurship Development usually receives 5-10 applications from students every year. This year, we have got more than 100.”

At the Centre for Innovation, Incubation & Entrepreneurship (CIIE), IIM-A, the situation is more or less similar. Says CEO Kunal Upadhyay: “CIIE, which focusses on hi-tech businesses in the field of information and communication technology, healthcare and clean energy, typically sees 10-15 students opting to become entrepreneurs every year. We expect larger numbers next year if the downturn continues for a longer time.”

IIT Madras’ Rural Technology Business Incubator (RTBI) is another institution that’s seeing more enquiries and footfalls. “Earlier, in a month, we would see one person walking in with a proposal. Now, we get at least four enquiries a month,” says Lakshmi Vaidyanathan, RTBI’s Senior Manager. RTBI designs, pilots and incubates business ventures that have a rural focus.

Less chunky salary packages may be a good reason to go it alone, but that’s not the only provocation. Starting up in a downturn has its advantages. “In a downturn, people end up building real businesses. More disruptive innovations, which are very relevant to consumers, also tend to get developed in difficult times. In a boom market, the innovation is typically incremental and businesses do not have a very good value proposition,” says Upadhyay.

What’s more, a slowdown levels the playing field for a start-up vis-à-vis an established player. “In bad times, most established players cut back on sales expenses, advertising and promotions to keep their costs under control. This allows a start-up to enter the market when there is a lull. Also, you get a lot more time to work on your products as there is not much of activity in the marketplace. In terms of cost, starting up in a downturn would mean lower rentals, and good people at lower salaries,” explains Mitra.That’s a refrain one constantly hears from budding start-up artistes. But there is a flip side, too— funding isn’t easy to come by. “In boom time, business plans get funded. In tough times, companies get funded. If you are just out of college with little experience, getting money is a difficult task,” says R. Ramaraj, President, The Indus Entrepreneurs (TiE), Chennai. Also, in bad times, the market for products shrinks as customer confidence takes a beating. It involves a lot more effort to sell your products. But the graduates taking the plunge today would be taking heart from the renowned promoters of mega-corporations such as Cisco Systems, Apple, Oracle and Hewlett-Packard— they were all started in a downturn.

Alok Mittal Different strokes for different folks Entrepreneurship is coming of age in India. While passionate entrepreneurs have always created successes, the enablers now available in the forms of capital, ready talent, and fast-growing markets, are making entrepreneurship the aspiration of a wide variety of people. Here is a quick guide to what you can leverage and what to watch out for, depending on when you choose to start your business. The student Strengths: Creative disrupter. Energy and enthusiasm not yet clouded by experiences of failure. Choice of business: Think Yahoo!, Google and Virgin. Wide open areas and inherently new models—high on ideas, low on logistical complexity. Build for like-minded customers. Force multipliers: Seek mentors and advisers, but follow your conviction. Build an execution team with experienced people as you scale. Stay at the edge—be it with employees or with customers—serve early-adopters at the fringe and build inwards from there. 30-something Strengths: Young enough to dream, experienced enough to implement. Support and credibility amongst wide range of people. Time on your side. Choice of business: Think Reliance, Turner and Infosys. Formative industries with long-term change potential. Simple ideas, consistent execution, patience. Force multipliers: Leverage the ecosystem. Play for a long term—marathon is your sport. Cultivate and exploit relationships, both with senior executives and with young talent. Build complementary teams and share decision-making. Fly under the radar as long as possible. Senior executive Strengths: Deep domain knowledge and execution skills. Extensive leverage on resources. Choice of business: Think Southwest, Rediff and WNS. Large existing markets where personal knowledge and insights create opportunity. Force multipliers: Build inside out—incremental innovations, superb execution. Use industry networks to build the best team and optimal partnerships. Act big before you get big—adopt and create industry-wide platforms. Inspire and lead. The true spirit of entrepreneurship lies in its diversity and unpredictability. So, regardless of where you are in your career, remember to follow your gut. The excitement is often not in where you are headed, but in the journey itself. Have fun!where you are headed, but in the journey itself. Have fun! The author is Managing Director of venture capital firm, Canaan Partners