Role of Management Education in Promoting Entrepreneurship (WWW - Writekraft.com)

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(All Rights Reserved)
ROLE OF MANAGEMENT
EDUCATION IN
PROMOTING
ENTREPRENEURSHIP

(Regd. No. AAI-1261)
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1.1 The Background
lndia is at the threshold of the 21st century and moving ahead in

the 21st
the world
century calls for a clear vision. winds of change are blowing all over
and India is no exception to these sea changes. The economic reforms
-
initiated in 1gg1 resulted in several transformations regulation to
liberalisation and protection to globalisation. All these transformations,
coupled with the move from a planned economy to a market-oriented
economy, demand a new approach to deal with all types of challenges'The

compounded by
challenges arising out of global competitiveness are further
several factors and by socio-economic, technical, political and ecological

and
changes. The emerging challenges, perhaps, require an entrepreneurial
managerial approach, and entrepreneurship education is

therefore, more
important and relevant than ever.
in a couple of
India is likely to become the third largest economy of the world
decades from now as per a report by Goldman Sachsl. The famous Goldman Sachs
BRIC report argues that the economies of Brazil, Russia, India and

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China are developing so fast that, by 2050, they will surpass most
of the
current richest countries of the world'
It is a matter of pride that India is getting back its position as an economic
power. The country'sGDP is slated to grow at more than 8 per cent. Yet as a
country, it stands at 150th position (approx.) amongst 206 countries in terms

of GDP growth. However, our present systems focus on creating bunches
1 Jir Potential,
O'Neilland Tushar Poddar (2008), Ten Things for India to Achieve its 2050
Research
Global Economics, Paper No: 169, June 16 Goldman Sachs Economic

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who are more doers (managers, engineers and analysts) than dreamers
(change architects, innovators and entrepreneurs). To sustain and maintain its
Supremacy and lead the next century, the country needs a roadmap clearly
charting what it can further offer to the world'
BY 2050, INDIA IS PROJECTED TO BE
THE THIRD LARGEST ECONOMY IN THE WORLD
50,000
c Huge gap
g /t0,000 between three
3 largest
tD economies and
o the next few

:r
c,
UI
ct
N 20,000
c
o.
(, 10,000 -f -t'3t'-ry ,-0,600
CT
-s,Boo -s,roo
India Japan Brazil Russia UK Germany France

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India to overtske France in 2018'

'
;,,,1,!ji5.a-'.!.,,r,;.*t r.,;i!,*'t,*,,r.rij:4r)i
CHART 1.1: Largest Economies in 2050
India has completed six decades of Independence and today, country's
population stands at over 1 102 crores. As per the 2001 Census, 31 .2 per cent
of the country'spopulation or 337 million were below the age of 15. This
number will multiply manifold in next two decades thereby us having forty odd
crores of people below the age of 35 years who would look for a better and
brighter tomorrow. The proportion of our population, in the relevant age group,
that enters the world of higher education is only about 10 per cent (2004-05). In
this context, it is worth quoting from the report of the National Knowledge
Commission, which Says, "A demographic explosion in the young population
of the country means that higher education needs to keep pace with the
growth in the relevant population. This is a unique demographic trend and
2 www.indiastat.com

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providing higher education for this group is imperative and needs

to be
provided on an unprecedented scale that is challenging. The higher education
sector itself currently faces major challenges of quality and excellence and of
improving access with inclusiveness".3
Speaking at the 90th annual convocation of the Benaras Hindu University
(BHU), the Prime Minister, Dr. Manmohan Singh, said: "Only 10

per cent of
India,s youth go to college as against 40-50 percent in the developed

Western
countries". a
80+
75-79
70-74
65-69
60-64
55-s9
g5o-s4
6 ls-lg
6 qo-qq
o 35-39
Sso-sl
25-29
15-
1G

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5-9
0-4
20 - 35 age group:
325 million peoPle (-25 Y")
CHART1.2: India Demographic Profile (2O2O)
3 Th" National Knowledge Commission (NKC) was set up by the Prime Minister Dr. Manmohan Singh
in 2006 to prepare a blueprint to tap into the enormous reservoir of our knowledge base so that our people
can confidently face the challenges of the 21st century.
National Knowledge Commission (2009), Report to the Nation 2006-2009 Government of India,
March, Published by: National Knowledge Commission, Government of India, Dharma
Marg, Chanakyapu ri, New Delhi-1 1 002 1, www. knowledgecommission. gov'in
4
PM calls for improving higher education, Monday, 17th March, 2008, Source: IANS

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Access to higher education in terms of the available number of seats in
universities is simply not adequate in relation to the current demand. There
are also large disparities in enrolment rates across states, urban and rural
areas, sex, caste and poor-non-poor.
Given that India will soon have the world'slargest number (some 40 crores) of
young people below the age of 35 yearss and rising unemployment rate
estimated to be hovering around 97o, it has resulted in growing frustration
among the youth. In addition, there is always a problem of underemployment.
Growing unemployment coupled with underemployment of the educated

people is a source of concern and is affecting the economic growth of the
nation.
Be it results of the 57th round of the National Sample Survey Organization
(NSSO)6 or India Labour Report 2006 of Teamlease SeruicesT or any other
available estimates, it is a fact that annual average growth in employment has
slowed primarily because lack of job creation and that the unemployment rate

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for the young graduates is hovering around 30% to 4Oo/". A loud and clear
message from all sources/studies8 implies that this is, perhaps, due to a
mismatch of what our educational institutions are churning out and what the
economy can take in and needs. lt is a widely believed perception amongst all
concerned, including corporate, that "the present education system is geared

towards churning out employees and not employers".
The issue is how to enhance their employability and the problem on hand is
mis-match of industry/economy expectations vis-d-vis what is being delivered
by most of the educational institutions. To give an example from a

5 Cll Confe rence 2OO2; CSFB Report; UN Population Division; BCG Analysis
6 NSSO 57th Round, July 2001 - June 2002

t India Labour Report 2006, A Ranking of Indian States by their Labour Ecosystem (Labour
Demand, Labour Supply, Labour Laws), A Report by Teamlease Services,

www.teamlease.com
8 Laveesh Bhandari, "social justice without PhDs", The Indian Express, August 10,2OO7
4
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Teamlease studYs 90 Per cent of the employment oPPortunities

require
vocational training, whereas 90 per cent of country'sschool and college

output has only classroom knowledge'
very insignificant
This calls for a serious attention of the Educationists. A
percentage of the people in the work force are employed in

the organized
Increasing the
sector. The remaining is engaged in the unorganized sector.
of innovative
entrepreneurial activities in the country with a "continuous supply
and resilient entrepreneurship" appears to be a possible solution'Today,

keep fighting
looking at the demographics of the country, the policy makers
the case of affirmative action and address the issues by creating job
Reseruations. One has
opportunities for people through Quota systems and
to understand that creating job opportunities by introducing the Quota system
and Reseruations are temporary measures, whereas the country needs

multiple solutions and not a one-time solution. This is because opportunities are being
created within establishments and not generating entrepreneurship
through the millions of untapped potential within the country. Instead, one
must look at developing entrepreneurial skills amongst people that can

generate multiple opportunities for employment and can solve so many
problems of the country - both small and big. lt all stems out from the

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philosophy of dignity of labour (e.g., plumbers, electricians and carpenters).

Forever organizations, business houses and establishments would require
their labour to move ahead and progress. The sector/service however needs
to be organized and well directed. That opportunity exists.
The task in hand is how to make available to young ambitious students wider
options and a variety of skill sets to enable them to have real choices about
their future. Hence there exists immediate requirements for entrepreneurial
management skills and at a much faster pace to cope up with the pace of the global
economy and the focus must be on nurturing new entrepreneurship for industrial
growth towards a long-term sustainable solution as also to sustain
n India Labour Report 2007, The Youth Unemployability Crisis, A Report by Teamlease
Services, www.teamlease.com

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boom period for longer durations. For all this to happen, industrial growth has
to be high and the simple long-term sustainable solution must be to focus on
nunuring new entrepreneurS. This forward-looking approach can enable us to
move ahead as a country. The risk taking ability of an individual has to grow
for people
and it can only be done when formal training and education is given
the long-term
to start their own businesses and thereby helping in achieving
vision of the country. lt is widely acknowledged that Entrepreneurship is a

has traditionally
significant determinant of economic development. While India
been an entrepreneurial country, it fares poorly in numerous global studies
exploring the entrepreneurial and business potential of

countries and this
poor pertormance brings down India'sglobal ranking in many fronts'
Doing Business
fndia is ranked 122 out of 181 economies as per World Bank
Report (2009). This World Bank Report investigates regulations that enhance
business activity. Again, according to the annual report of Global
competitiveness Index (Gcl), 2oo8-09, published by the world Economic
Forum, India slipped to the 50th place in the rankings this year from the 48th
position last year. The report says that India'soverall competitive position has
one of
been weakened by the macroeconomic instability the government runs
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the highest budget deficits in the world'
Developing Entrepreneurial skills amongst students surely can generate
problems of the
multiple opportunities for employment and can solve so many
the skill
country - both micro and macro. What is required is to impart to them
sets required for these professions. Then once they master the skill sets, they
will have limitless opportunities and in turn will employ many people. This will
have a two-fold benefit to the economy. The core problem of unemployment
will become less critical, thereby generating more entrepreneurs! This is
important as creativity and innovation is the make or break of an economy.
People must be encouraged to take up challenges to explore new avenues of
wealth generation. The management schools have to take up the challenge'

Therefore, there is a need, in general, to revamp management education and
review the role of different management institutions in this context'

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Alvin Toffler, in his famous book "Future Shock"1o, Says "

To help avert future
shock, we must create a super industrial education system and to do this'we
than the past"'

must search for our objective methods in the future rather
Education must shift into future tense'"
yesterday'sknowledge
"There is so much change taking place everyday that is
becoming obsolete and today'sideas will become out-of-date
tomorrod' opines
will be
Dr P C Shejwalkart'.Similarly, what was relevant yesterday
outdated tomorrow.
ln 2OOB, Dr Manmohan Singhl2 commented upon the need for close
work towards
interaction between educational institutions and industries to
providing relevant education and gainful employment to young people and in
this context, he expects the private sector to play a larger role, especially in
technical education.
Similarly, while addressing a gathering at the Agri-Horticulture Society

of India

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(AHSI) in Kolkata, Dr Abdul Kalaml3 expressed similar concern that every

year millions of graduates are emerging from various universities
of the
country but fewer jobs are available compared to the huge number passing
out.
The above concerns expressed by none other than the Heads of the country in
a testimony
therecent past are nothing but an echo of a lurking truth or
towards the statement made in the introductory paragraph about growing

unemployment.
t0 Futut" Shock, Alvin Toffler, Bantam Books. June 1984
tl ,,Recent Trend in Management: A New Vision", Management Vision 2008-10'A Pune
Space Marketing Feature, The Indian Express, Pune, November

22, 2OO7
12 20,2oOG
Manmohan Singh, Prime Minister of lndia llT, Delhi March
tt Abdul Kalam, President of India, Financial Express, February 28,2004

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To address the expressed concerns as narrated in the foregoing analysis, it is
invariably always felt that there is a felt need to re-look and re-visit the
requirements of the country and thrust areas vis-d-vis the possible roles the
Indian management institutes can play. Towards this it is of utmost
importance that syllabus and curriculum should be made competitive and
responsive to the needs and be in tune with the changes in the environment
and economy. lt confirms the vision stated in a sentence by our Prime
Minister, Dr Manmohan Singh, at the launch of Bharti School
Telecommunication Technology and Management - ".....when we launched
new economic policies, we did so to unleash the creativity and enterprise
latent in our entrepreneurs..." 14
In a keynote speech at the TiE Entrepreneurship Summit held in New Delhi in
2005, Prof CK Prahladls noted that India must pay more attention to
entrepreneurship, which he described as "the essence of development." The

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entrepreneurs who gathered at this TiE Entrepreneurship Summit indicated
that, challenges facing entrepreneurship in India are plentiful and as a
country, there is a need to place faith in entrepreneurs and that, the
government needs to play a larger role in encouraging it.
The National Knowledge Commission (NKC) also recognizes the growing
significance and visible impact of entrepreneurship in creating and multiplying
wealth, thereby generating employment oppoftunities in lndia. This concept
predates on the logic of multiplying impact that has been demonstrated
practically by many entrepreneurs in the past. One man'sidea and vision

triggers greater investments and opportunities to multiply employment and
capital. 16
tn Press f nformation Bureau, Monday March 20,2006 on the launch of Bharti School of
Telecommunication Technology and Management.
15Prof. C.K. Prahlad, Keynote Speech, TiE Entrepreneurship Summit, December 11-13,
2005, New Delhi. Prof Prahlad was Harvey C. Fruehauf Professor of Business Administration
and Professor of Corporate Strategy and International Business at the University of Michigan
Business School. He was globally recognized business consultant who had worked with
senior management at many of the world'sleading companies.

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Considering the importance of this critical subject, NKC undertook a study on
EntrepreneurshiplT to further research and investigate the key characteristics
that can enable promotion of Entrepreneurship in India. With this, one can set
up the right kind of institutions and facilitation centre that can create a
conducive environment to encourage Entrepreneurship.
The report praises and appreciates earlier studies and recommendations of
the NKC on Innovation and Vocational Education & Training.
Amongst several findings, the NKC has established some key 'triggers',that help
the nurturing and flourishing of Entrepreneurship, The findings suggest that
there is no "one" factor or stakeholder that contributes to the acceleration
of entrepreneurship. lt is a combination of several factors such as inspiring
business environment, access to finance at the initial stage, fundamental

education, self-confidence and motivation and other socio-cultural and

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economic situations. Therefore, the fufiher groMh and promotion of
Entrepreneurship in India demands involvement of multiple agencies. Right
from the government, open access to financial institutions, quality of good
practical education through Business Schools and institutions, support from

lndustry Confederations, Chambers of Commerce, network of forums,
incubator suppofters and the all round community at large including families.
Some of the policy recommendations of NKC can be afticulated as follows:
i) To make Entrepreneurship a core subject in business schools.
This can be fufther complimented by setting up exclusive
establishments that specialize in the training and education of
"Entrepreneurship".
16 National Knowledge Commission, Report to the Nation 2006

- 2OO9 Government of India,
@ National Knowledge Commission, March 2009 Published by: National Knowledge
Commission, Government of India Dharma Marg, Chanakyapuri, New Delhi-110 021
www. knowledgecommission. gov. in
17opcit, June 5, 2008 Report

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ii) Though education on entrepreneurship is a questionable topic

by itself, it is widely observed that education plays an impact role on
entrepreneurship and entrepreneurial motivations. This can be fostered
by the above-mentioned points on providing
much exposure practically, analysing constructively, developing

its curriculum and syllabi, industry-research-academia
collaboration etc.
Over the years since the 1950's,the story of higher education has been that
of extended reach and coverage, multi-disciplinary specialization and
diversified. The country has witnessed a significant increase in all fronts of the
higher education system. Be it number of universities or educational
institutions, it has increased everywhere and the Table 1.1 below provides a
consolidated data as on 2006.18
TABLE 1.1: Educational Institutions: 2006

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Central Universities 20
State Universities 217
Deemed Universities 106
Private Universities 10
Total Universities 353
Institutions of National lmportance 13
Institutions set up under State Act 5
Total U n iversities/l nstitutions 371
Total Colleges 17,625
Source: Nehru Memorial Lecture by UGC Chairman at University of

Mumbai, Mumbai, November 24,2006
ttHigher Education in India, Emerging lssues Related to Access, Inclusiveness and Quality,
Sukhadeo Thorat, Chairman, University Grant Commission New Delhi, Nehru Memorial
Lecture, University of Mumbai, Mumbai, November 24,2006.
10

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In this context, fortunately, management education in our country has been
attracting attention and is playing a significant role in shaping the economic
destiny of the country. There has been a tremendous growth of management
institutes in India. India has the largest collection of B-schools next to the US
of around 22OO and it is growing at the rate of around 20 per cent annuallyle.
Every year a good number of students pass out of management schools. The
large network of B-schools the country has today need to produce not just
managers but also those who are capable of meeting any business challenge
in a globally competitive environment. Thus, amongst the stakeholders, the
management institutes have the onerous responsibility of contributing their

might to the management education to make a positive difference to the
economy of the country.

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To take India to the next century, Indian business schools need to change
teaching techniques and should focus on creating more entrepreneurs along
with leaders and innovators2o.
The need of the hour is to create institutions of change (new wave institutions
as termed by NKC). This would encourage youngsters to create positive
changes in society, change the habit of educational institutions to teach by
rote method and focus only on placement and, finally, create larger
ecosystem that impacts entrepreneurship and entrepreneurial motivations,
where increasingly management education is perceived (NKC
recommendation) to contribute enormously.
The following is what John Kottefl, Harvard Business School'sworld-

renowned expeft on leadership, writes on the topic. "Without enough
19 Business India'sBest Business Schools Directory 2009
20 Sangeet Vargheese (2OO7) Building a Nation Of Leaders - ON LEADERSHIP www.

businessworld.com

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leadership from enough people in existing organisations, they become too
sluggish and uncreative to flourish in a world of change and globalisation.

Without enough entrepreneurial leadership to create and build smaller
organisations, an economy like India cannot keep producing enough jobs to
make it function well (and to keep a democracy stable). Leadership is not the
only necessity for progress, but without enough, scarce resources are not
sufficiently leveraged, economic growth cannot be sustained over long

periods of time, and democratic institutions remain fragile always
vulnerable to tyranny and corruption."
1.2 The Growth of Management Education
May be twenty years ago, becoming a graduate degree holder was an
achievement in itself and this conventional wisdom dominated Indian minds
for long. However, today the current job market demands a lot more from its
prospective employees and a student has to be more than a graduate. To

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gain that e)dra edge over the rest, a student must arm himself with a
professional qualification. The emerging professional qualification appears to
be a degree (MBA) or an equivalent diploma (PGDBM and/or allied) - an

industry centric program. The booming Indian economy and the advent of
liberalization have led to a paradigm shift in high demand for managers as the
economy is transiting to high growth phase. Firstly, employers look for
differentiators when they seek talent. Possessing an additional professional
qualification is a definite differentiator. Secondly, given the unprecedented
decline in availability of jobs for fresh candidates due to the global slowdown
in 2008_09, students see this time as a great oppoftunity to hone their
existing skills or even add a few more. There is no denying that this
awareness is widely felt and students have understood the value proposition a
fancy management qualification tag brings to the table, resulting in a heavy
demand/rush for this course.
" John Kotter, Harvard University Professor

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This, in turn, has led education industry to undergo a major renaissance for
the number of multiple oppodunities it offers to students today, thus allowing
each one to pursue their degrees closest to their respective aptitudes and
inclinations. The number of applicants for Common Admission Test (CAT) has
been increasing over the past decade and so the number of applicants for
other similar entrance tests across the country is a case in point.
Management education is highly demanded like other pure professional
courses. In the beginning of 1990, a number of institutions began offering
management programmes in a cascading fashion. About 800,000 candidates
pass out from about 1350 institutes offering two-year full time/part time/three
year programmes as MBA/PGDM holders every year, which is greater than
the number of graduates passing out in China and United States of America
(USA). Year after year, the number is growing in an unprecedented manner.
An increase in the number of institutions should positively be proportional to

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quality as well. Mere increase in numbers without enough attention quality will
lead to undesirable results and therefore that is another big challenge
As can be seen from the Table 1.2 and Chart 1.3 below, a phenomenal
growth of business schools has been registered post 2000. There has been
an annual addition of 169 during 2000-2006.22 Coupled with the groMh of
business schools, the country has witnessed a phenomenal groMh in
enrolment in management education as well.
22 National Knowledge Commission, Report to the Nation 2006 - 2OO9 Government of

lndia, @ National Knowledge Commission, March 2009 Published by: National Knowledge
Commission, Government of India Dharma Marg, Chanakyapuri, New Delhi-110 021

www. knowledgecommission. gov. in

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TABLE 1 .2: Growth of business schools in India during 1950-2006
Period No. of Business Average annual addition
Schools added
1950-1980 (30 years) 118 4
1980-1995 (15 years) 304 20
1995-2000 (5 years) 322 64
2000-2006 (6 years) 1017 169
Source: Ministry of HRD, Govt. of India
Growth of business schools in lndia during 1950-2006
r No. cf Eusin+cs
55C' 5choo : addetl
I Ave'ag,cannual
t_lE add tion

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I
1950-1980 (30 1980-1995 .15 1,395-2000 (5 20c,0-2o06 (6
years) years) years) y€a1s)
Source: Ministry of HRD, Govt. of India
CHART 1 .3: Growth of business schools in India during 1950-2006
This unprecedented number of technical and management institutions is
being set up, mostly through private capital and various entrepreneurial
initiatives of promoters, taking advantage of the ever-increasing demand for
management graduates. Unfortunately, this has also led to a commercially
exploitative environment with much compromise on Quality. Regulators focus
only on physical infrastructure rather than research, qualified faculty and

relevance of courses, thereby creating a mismatch between supply and
demand.

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In 2006-07, there were over 1 100 br"rsi'ressschools in the country. Of these,
five were private aided ins;tilurtions 301:t were nrivate unaided and 149 were
government institutions.

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Source: Ministry of HRD, ()c,v'ernmerrt:f India
CHART 1 .4: Nurnberr of [/l:tn€roem{]nt l'r:s1:ilutions 2006-07
Since industry primarily abs;orbs lr,: managerrrent graduates and post-
graduates produced by thr:r;r: institrlions, there, i,s €r gfowing need to match
the curriculum and structure of man:rg€)rnen': educi,rtron to better fit the needs
of India and to the changels; in the nrj.rstrial anl serrvices sectors within the
country. Moreover, it is irnpoftant lrr r;heck. tl'rr,rproper assessment of the
quality of management t-'dr.rcationilparted trl tfre studenl;s by various
institutions. The quality of bus;iness r;llrlr:ation is i,rls;o not unifornr with the very
best institutions numberin,:t arrouno l:ts or sl th;:l l;ern be comparable to any
excellent school. There arer arouirrd 1200-b,usirres;sr school that are worlh
considering as being furll-fk:dge<j sr:hoolr.; c;atelring to MEIA education.
Referring to the quality ol educatir:n, Prinn,:l [\,'lir1i:;trerDr Manmohan Singh,

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prime minister obserued "---------two-thirds of India'suniversities are providing
sub-standard education while 90 per cent colleges are below average'.23
Our education system does not completely reflect real needs of the industry
that faces problems of integrative nature across the traditional disciplines,
such as:
o Working globally in a multicultural environment
a Working in interdisciplinary, multi-skill teams
a Sharing of work tasks on a global and around the clock basis
a Working with digitaltools for communication
a Working in an virtual environment
The Indian industry and employer associations are continuously bemoaning
the fact that our education system is not delivering people who on one hand
have a breadth of basic knowledge and on the other hand can pafticipate also in
solving problems. This requires competencies in effective communication,

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teamwork, project management and other soft skills like responsibility,

creativity, and micro-entrepreneurship and so on.
Placements for MBA graduates from good institutes continue to be quite
attractive even now. During the downturn, as companies tightened their purse
strings and the number of available jobs continues to shrink, firms are starting
to get more selective in terms of where they hire. Though a mere mention of
an MBA in a resume can give the much needed edge, the MBA tag alone
does not bring with it any guarantee of a job. Equally important is where one
gets the degree from and this is also a factor that influences the decision
making process of the hiring manager.
Despite such size and growth, management institutes are still unable to cater to
the latent demand for business education in India. The rest of the schools
23PM calls for improving higher education, Monday, 17th March,2008, Source: IANS
16
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of the current genre are small, regionally focused and of questionable quality.
Nevertheless, the spirit of entrepreneurship is quite evident in the business
education in the country. With a bit of effoft from the policy makers and the
industry it should be possible to build high quality of business education in the
country and bring its level to that of the global best.2a
1.3 The Purpose of the Study
Although entrepreneurship has certainly become fashionable, there are signs

that it has not yet attained full citizenship in the Indian academic world. High
quality and industry focused education is about change, hopefully for the
betterment on the individual student and for the society as a whole.
An Ascribe repon2s states that the first global study of high expectation
entrepreneurship has found that just 9.8 percent of the world'sentrepreneurs
expect to create almost 75 percent of the jobs generated by new business
ventures. The Global Entrepreneurship Monitor ("GEM") international
research consoftium (co-directed by Babson College and London Business

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School) carried out this study. This is a clear indicator for us in India to take
serious note of. A very large percent of employment is from people who
expect to employ around 20 people.
Historically, we in India have focused on creating managers and bureaucrats
rather than employers. At the time of independence, Indian economy was
developing and the political ideology was an inward looking one. Hence the
demand and desired management skills were, perhaps, different then.
However, over 60 years after independence, the Indian economy has become
more mature, we now require different kinds of management skills and this
makes the task challenging for Management Institutes. There is no denying
the fact that the management educational institutions in the country are
playing a major role in professionalizing the human resources so essential for
2a Business India'sBest Business Schools Directory 2OO7 and 2OO8
25 Ascribe Business & Economics News Service, November, 2OO5

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running an organization efficiently and in achieving maximum productivity as
in economic growth of the country. The contribution is not limited to the
sphere of business management alone. lt has expanded in the areas of other
operations and sectors.
India and the Indians have undergone a paradigm shift. There have been
fundamental and irreversible changes in the economy, government policies,
outlook of business and industry, and in the mindset of the lndians in general.
From a shoftage economy of food and foreign exchange, we have now
become a surplus economy. From an agrarian economy, we have emerged to
a seruice-oriented economy. From the low-growth of the past, the economy
has become that of a high-growth one and in fact now talking of achieving
double-digit growth and sustaining this. Having been an aid recipient all atong,
India is now
joining the 'aidgivers'club. Although India was late and slow in
modernization of industry, it is now a front-runner in the emerging knowledge-
based economy. The government is continuing its reform and liberalization

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programme, not out of compulsion but conviction, though not at the desired
pace. Politics of coalition governments sometimes hinder the achievement of
this desired pace of change. lndian companies are no longer afraid of
multinationals. They have become globally competitive and many have
become MNCs themselves. An outward-looking, confident attitude has
replaced the introveft defensive approaches. In place of denial and sacrifice,
our value system has started recognizing seeking of satisfaction and
happiness. Indian culture, which looked down upon wealth as a sin and
believed in simple living and high thinking, has started recognizing prosperity
and success as acceptable and necessary goals.26 with increasing
discretionary disposable income, Indians have become big spenders.
In the last 15 years, several institutes have started offering management
educational programmes in various forms, all over the country. They offer
specialized functional programmes like lnsurance, Retail, Sales, International
* Sriram M S (2007), Rural Management Education in India: A Retrospect, llMA, Working Paper (2007-04-01)

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Business, and Financial Management etc. The objective of this research
essentially looks into the reasons for an increase in the number of

management educational institutes, which offer two-year management
programmes and their initiation, if any, towards creating entrepreneurs.
However, jobs are far fewer than the number of pass outs and quality is
uneven (not of comparable standard). There exist many factors such as -
infrastructure, industry-academic interface, competitive and updated curricula,
modules and lesson plans, faculty, systems of evaluation and certification that
are responsible for such quality. lmproving the quality of the management
education is a major challenge today. The quality of a management institution

reflects on the quality of the pass outs that in turn depends on the grooming of
employable skills or competencies of the students. The need of the hour is to
improve the quality of the pass outs to the acceptable (by industry standard)
levels of competencies along with more entrepreneurs.

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As per available facts based on different sources like the AICTE Website2T,
Report of the Synergy Sub-group on Indian Institutes of Management2s, and
Special suruey repofts like "the world of B Schools"2e, India has witnessed a
phenomenal increase in the number of approved management institutions at
the post-graduate level from 242to 1012 (between 1994 and 2007), a more
than four fold increase in a span of 13 years. One may also note that the
numbers are varying given a plethora of sources of data and again on year-to-
year depending on pending compliance of AICTE formalities and new
approvals:
27 www.aicte.ernet.in
28 Report of the Synergy Sub-group on Indian Institutes of Management, December 1995

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2e Business World (1994), India'sbest business schools, pp 36-41, October 19-1 November

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TABLE 1.3: ALL INDIA PICTUtli:Si OF h4AN,AGEMENT EDUCATION
INSTITUTIOI{S APF'IIOVEDBY A\lCTE, 1994
MBER
NUI/ll:lE:tl C)F
REGION OF lNSTll-tJ'flOf,lS
i-__.-
t- 2, _1, 34
t_ :'1_ _[ 164
t_ 1'l_ _l 68
t- :!t - 76
SOUTH-WEST L_ l'_-l 15 __l

t_ ;2:;t _ t

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CHART 1.5: All India Pic;tures cf [t/ana1;em€nt Education Institutions Ap;rrovecl lry
r\lCT'E,11)9.1
Then there are scores of Franchise.ls of Univerrsities in most towns, offering
as many management progriemmesi l-he numb€)rsi are varying (year to year)
depending on pending compliaps6 rtrf ,qlCTli fo'rrralitiesand new approvals.

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Lakhs of students join these institutes and every one successfully completes
those programmes. The problem is about their employability.
However, a general feeling and a growing concern are that the standard of
management education is declinings and this sector is emerging as
"commercial'business enterprises. Further, jobs are fewer than the pass outs.
Prof Khurana3o in his book, "From Higher Aims to Hired Hands," argues that
famous B-schools, including Harvard, have lost track of their original mission to
produce far-sighted leaders who can help the economy run better''ls. it true for
India also?
Until those dynamics change, it will be hard for top business schools to
resume their traditional -- and vital -- role as training grounds for the next
generation of entrepreneurs.
Keeping in mind this future scenario, there needs to be a re-engineering of

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management education must be carried out. The future global manger would
require new skills, among others, Intrapreneurshipsl and Entrepreneurship.
Management schools will have to develop these skills among students.
Needless to say, that the courses should be need based and syllabi must
change periodically to keep pace with the ever-changing world of business.
The goal being not to just impart technical legal skills, but to enhance
judgment which students will bring to their responsibilities as entrepreneurs.
s "From Higher Aims to Hired Hands: The SocialTransformation of Business Schools and
the Unfulfilled Promise of Management as a Profession", Princeton, NJ: Princeton University

Press, 2007
3t Intrapreneurship is corporate entrepreneurship, whereby an organization seeks to

expand by exploring new opportunities through new combinations of its existing resources. lt
is a tool for stimulating and capitalizing on individuals in an organization who believe that
something
can be done differently and better.

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21

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No doubt, the role of these institutions is undergoing a paradigm shift in the
wake of liberalisation and more change is required. Therefore, there is an
urgent need to restructure management education to meet new challenges of
the 21 Century and accordingly, there is a corresponding need to revamp and this
study proposes to explore how to make such education more relevant.
1.4 Definition of important terms
For a long time, there was no equivalent for the term 'entrepreneur'in the
English language. Three words commonly used to connote the sense this
French term carried were adventurer, undertaker and projector. These words
were interchangeable and lacked the precision and characteristics of a
scientif ic expression.
According to Cole32, there are four types of entrepreneur: the innovator, the
calculating inventor, the over-optimistic promoter, and the organisation
builder. These types are unrelated to the personality but to the type of

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opportunity, the entrepreneur faces.
Despite the interest in the characteristics and phenomenon, there is little
clarity on who is an entrepreneur or what is entrepreneurship (Cunningham &
Lischeron, 1991; Kuratko & Hodgetts, 2004). An entrepreneur has been
characterized as a leader manager (McOlelland, 1961), innovator
(Schumpeter, 1934), a risk taker (Brockhaus & Honnritz, 1986), an initiator and
creative thinker (Hisrich, 1989, 1990) having internal locus of control (Rotter,
1966; as in Brockhaus & Honrvitz, 1986), and different from managers
(Penrose, 1995). lt is still difficult to answer the question looming large for
more than six decades now - who an entrepreneur really is (Evans, 1942). lt
suggested that the definition of entrepreneur and entrepreneurship has to
conceptualize beyond setting up of new businesses (Shane & Venkataraman,
2000). Moreover, in developing countries, the boundary between small
t'Cole, A. (1959) Business Enterprise in its Social Sefting, Haruard University Press, Boston,
1 959.

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business owners and entrepreneurs is often blurred (Thomas & Mueller,
2000).
Therefore, a workable definition that spans across levets of success, size of
activity, or social stratum in which such activity takes place was developed
and used in this study. An entrepreneur is an individual who establishes and

manages a business for profit and growth. The business is the primary source
of income and it consumes majority of the time and resources of the
entrepreneur.
Consequently, the activity of establishing and managing a business for profit
and growth is entrepreneurship.
When business starts afresh, without any previous family background of any
type of business, the person referred to is a first generation entrepreneur. lf the
business already exists and continues to the next generation of family, it

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refers as second-generation entrepreneurship.
This breed of second generation entrepreneurs could get formal knowledge
from education in B-School and our analysis that follow confirm the
assumption.
1.5 Objectives of the study
In the backdrop of above scenario, our present system of management

education is extensively focussed on employment search, and neither on
employment creation nor creating situation of gainful employment. Our system
is geared towards creating "doers" than "dreamers" and B-school campuses
come alive with eager students clamouring for the best placements and the
heftiest pay packages. In the process, we fail to achieve to give ample scope
to an individual for being creative and innovative. The incentives of becoming
an entrepreneur is much low than an incentive of becoming an employee in
the present education system. Most often, the biggest consideration for a
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student, when heishe applies to a B-school, is the placement record of that

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particular institute. However, how fair is it to consider B-schools as mere
portals meant to facilitate placements? What is the way fonrvard?
A degree'sworth is only realised when one can apply the highest degree of
that knowledge. Thereby, a good educational programme is not about
placements but the application of knowledge absorbed.
lncidentally, in this context, the report prepared by the Planning Commission
has strongly recommended self-employment as an option to deal with
unemployment. However, today, very few Indians are entrepreneurs as India
has less than 1% of population who stad their own business.
For the purpose of an international comparison, an entrepreneurial boom
exists in both India and China. New business staft-ups in China are up 16.2o/o
from 13.7"/" last year; 6O "/" is opportunity-driven;7oo/o of the Chinese think

entrepreneurship is a good career choice; and 32o/o expect to start a business
in the next three years. Chinese government'spolicies are most supportive-

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new funds, new incubators, science parks are all recent initiatives.
lmprovements in education, funding, and commercial infrastructure are still in
demand.
The scenario is similar in India where one in every ten people is engaged in
entrepreneurial activity, and the gender gap narrows in India. Nevertheless,
India has the highest level of business exits (15%) among GEM nations in
2006. The communications infrastructure is excellent, yet governmental
bureaucracy and the presence of 'bigplayer'companies make it difficult for
staft-ups to establish themselves. Surprisingly, lndia is behind in developing
new policies in support of entrepreneurs.33
GEM Global2006 report release final

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Fifteen percent (15"/"1 level of business exits is surely a very high price that
we as a nation are paying. Enormous resource goes waste. Numerous job
opportunities are lost, not to speak of the disillusionment of the budding

entrepreneur. lf this enterprising young Indian had undergone a structured
study programme of entrepreneurship training, he/she perhaps would not

become a statistic. lt is no wonder that GEM authors are surprised that we are
lagging far behind when entrepreneurship education is concerned.
Therefore, there is an urgent need for our management education institutions
to shift the focus from "Placement" to becoming institutions of change,

encouraging youngsters to plunge into entrepreneurship. The scope of
entrepreneurship development in a country like India is tremendous.
Perhaps, "Over emphasis on placement has undermined development of

entrepreneurship among MBAs. In a country like India where we need a band of
job creators, not job seekers, this is a great challenge. The B-School must
address this urgently."to

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"One of the only ways this generation is going to achieve a lifestyle that is
better than their parents is through entrepreneurship." 35
Given that management education in our country has been attracting
attention, and is poised to play an astral role in shaping the economic destiny
of the country, the question comes to mind of how to take advantage of this
professional course to the advantage of all stakeholders. The large network of
B-schools we have today needs to produce not just managers but also those
who are capable of meeting any business challenge in a globally competitive
environment. Institutions need to really create more and more practical

experiences for students and look at amalgamating with external
organizations. The quality of a management institution is reflected on the
34 Dharni P. Sinha, "Management Education in India, Perspectives and Challenges", ICFAI

University Press, 2004, www.icfai.org
3s Marilyn Kourilsky, former Vice President of the Centre for Entrepreneurial Leadership
25
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quality of pass outs that in turn depends on the grooming of employable skills
or competencies of students. Obviously, colleges following mandatory training
along with classroom lectures daily would have an edge over others.
Neveftheless, in many colleges what happens is that the student is taught
how to swim "on paped'andnot in water, and when he/she actually comes
into the professional world (the swimming pool), many struggle and lot many
sink.
For quite sometime, the debate is around:
o Can B-schools teach entrepreneurship?
o Does an MBA degree give students the extra edge and
confidence to take that plunge into the unknown?
. Entrepreneurial drive has to come from within and cannot be
taught.
.
The trigger of entrepreneurship was external and so on.

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The fact that entrepreneurship has been taught at Harvard Business School
for about six decades (first taught as a process, not as a person) and the
course - "The Entrepreneurial Manage/'was introduced into the required
MBA curriculum in the very first year in 2000 is an important testimonial to the
debate. lt marked an important milestone in the evolution of teaching
entrepreneurship at Harvard Business School.36
It is true that there exists large.numbers of successful entrepreneurs who had no

formal B-School training. "Entrepreneurs are neither born as entrepreneurs
nor full of knowledge; they are people like everyone else, but have found
ways to develop the necessary entrepreneurial skills". This is how IESE Prof.
Pedro Nueno3T sees it. Though some may learn entrepreneurial skills from
36 "Entrepreneurship: ll can Be Taught", Q&A with Richard G. Hamermesh, paul w.

Marshall, Michael J. Roberts, and Howard H. Stevenson, Lessons from the classroom,
Harvard Business School Working Knowledge, April 22,2OO2
3t Prof. Pedro Nueno Emprendiendo hacia et 2O2O( Entrepreneurship Toward 2O2O\ ,2OOs

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their families, which gives them a head staft, Nueno insists that starting a
company is not something in a person'sgenes.
Again, as noted by Prof. Philip Anderson3s, "we don'tpretend that you attend
a graduate school or course and come out to be an entrepreneur....
education is not a requirement to be a successful entrepreneur but it can be a

useful accelerator and it depends on the individual".
Therefore, perhaps, entrepreneurship can be taught in the classroom and to
be made effective, the MBA/PGDBM (or allied) syllabi, which are largely
structured to groom students to become better managers, need to be
restructured.3e Often, the classes are separated in the second year, based on
specializations - say Finance or Marketing. This compartmentalizing is not a

good idea for promoting Entrepreneurship, as an entrepreneur also needs to
know how to make plans, projections, raise funds and run the business.
After experiencing the impact of a recession in the economy in 2o0g and

growing unemployment coupled with many job cuts and retrenchment, the
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time is ripe and most appropriate to re-visit the basic objective and purpose of
these Management Institutes and how the existing curriculum can be
restructured to encourage and promote study of entrepreneurship. The large
network of B-schools that exists today needs to produce not just managers
but also those who are capable of meeting any business challenges in a
globally competitive environment.
In this backdrop, as mentioned earlier it is imperative that syllabus and

curriculum responsive to the needs of the society (individual and social
concerns and value systems) as in conformity with the aptitudes and abilities
of students. lt requires a continuous evaluation, industry interface and
38 Directorof Rudolf and Valeria Maag International Centre for Entrepreneurship and 3i
Venturelab at INSEAD, during his trip to India for a launch of an entrepreneurship portal with Cll
spoke to Business World Online'sChetna Mehra at wwlv.businessworld.in
3e Business India'sBest Business Schools Directory 2OOg
27

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updating and upgrading in tune with changing needs of the society of which
they are a paft. Introduction of new courses and emerging subjects keeping
pace with the developments, and updating of the curriculum should help in
maintaining standard and quality. ln the final analysis, the need of the hour is
to improve the quality of the pass outs to the acceptable (both industry as well
as society) levels of competencies along with more entrepreneurs. More
emerging topics and new entrepreneurship courses should be introduced on
an ongoing basis at appropriate levels enabling the students to enter the
world of work as a contributor to the economy rather than a burden on the
society. Therefore, it is vital to revisit the curricula as per the job requirement
in the market periodically.
Based on foregoing, following were the objectives of the research:
To study the objectives of students enrolling management
courses

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ii) To study the perceptions of the students regarding

entrepreneurship (awareness, whether entrepreneurs are born
or made or both, formal education as background, are they
taught enough, feeling about gaps and suggestions)
iii) To study the syllabus and curriculum of management institutes
iv) To seek opinions of authorities on coverage and curriculum and

possible amendments
v) To study the extent of impoftance given to entrepreneurship as an

option to placement
vi) To study whether any Institute is offering Entrepreneurship as a

specialization like Marketing, Finance or HR
28

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vii) To study the views of aspiring managers about the emergence of

Entrepreneurs
viii) To study whether post-liberalization a formal professional

education is necessary to become an entrepreneur or not?
The research study pertains to the years 2003 to 2008. Given a wide
classification of "Entrepreneurs", the study concentrates on general
Entrepreneurs only.
1.6 Hypothesis
It is felt that management institutions are neither encouraging nor focusing on
entrepreneurship education in the process of admitting as well as in the
delivery of the programme. The quality of the pass outs and trend in their
placement clearly point out that we are not creating "Entrepreneurs". There
appears to be no connectivity between Management Education and
Development of Entrepreneurship in India and this call for introduction of new

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entrepreneurship courses at appropriate levels. We see very few high profile
new faces in the country'sbusiness landscape (apart from old Tata, Birla,
Ambani, Premji, Narayan Murthy and a few new ones like Kiran Mazumdar
Bob Shaw, Biyani) and in this context, the role Management Education or
Management Institutions can play is very important.
In this backdrop, the hypotheses set for the research are:
i) Management institutions are not offering study of
Entrepreneurship as a specialization subject like the popular
ones namely, Marketing, Production or Finance or HR. A serious
gap in the curriculum, perhaps, is the absence of the studies in
entrepreneurship in India. In order to solve the problem

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entrepreneurship courses should be introduced as a
specialization.
ii) Formal education may not be a pre-requisite for Entrepreneurs
during pre-liberalization era but post-liberalization a formal
education will go a long way in creating entrepreneurs who are
the mainstay of any economy.
1.7 Reason for choice of topic
Management institutes in lndia, over the years, have been churning out job
seekers by providing professional degrees and diplomas to motivate young
minds, whereas the need is how to make available to young ambitious
students a wider options and a variety of skill sets to enable them to have real
choices about their future. In a country like India where we need a very large
band of job creators, not job seekers, this is a great challenge.

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The management institutes irrespective of locations, must provide a
launching pad for an exciting professional career. All attempts & initiatives
must focus towards that. Here again, as the literature survey indicates, an
over emphasis on placement has undermined development of
entrepreneurship.
The younger people are more likely than average to be thinking of starting
their own businesses,ao and the power to influence and change the world is in
the hands of the students. Today, the students have a multitude of
opportunities, wide range of choices and access by viftue of which they are
educating themselves and they are well informed. They also seek to enquire
into their future and discover the best possible answers. They have immense
potential to innovate, manage and to achieve the best use of available
resources.
oo Global Entrepreneurship Monitor (GEM) Repor.ts

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Studies and research have further recognized that many students may well be
discouraged from starting a business because of perceptions of the risk of
failure (and its consequences), since training and advice are not made
available early enough within schools and institutes of higher and fufther
education, and because of a lack of effective role models. How to raise funds
and when to staft own business are the other two most frequently asked
questions before starting an enterprise.
Hence, with sweeping changes taking place across the globe and with the
economy painting a gloomy picture, managers and management graduates
are turning to stafting their own venture. Therefore, it is becoming increasingly

clear from research, studies, discussions and deliberations in various forums
that management education has to revamp in a comprehensive manner and any
incremental changes are inadequate.
Given this background, students could be the right target in general and in

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pafticular those students pursuing management education with an objective of

becoming entrepreneurs immediately after passing out and/or after acquiring
some working experience. The country is definitely not interested in churning
out of business administrators in huge quantities with a serious quality issue.
The risk taking ability of individuals has to grow and it can only happen when
connectivity between Management Education and Development of
Entrepreneurship is established. Developing entrepreneurial skills amongst
students at the right age surely can generate multiple opportunities for
employment and can solve many problems of the country- both small and big.
The need is, perhaps, to impart skill sets required for these professions to
them. Then, once they master it, they will have loads of opportunities and in
turn will generate employment. This will have two-fold benefit to the economy.
The country'score problem of un-employment will mitigate at a rapid pace

and more entrepreneurs generated. This is essential as creativity and
innovation is the make or break of an economy. Students must be
encouraged to take up challenges to explore these opportunities and many

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measures can be adapted to this effect right at the higher education entry
level.
Given this context, it is definitely time to re-look and re-visit the requirements
of the country and thrust areas vis-d-vis the possible roles these management
institutes can play in creating real Masters and Entrepreneurs. The topic
chosen for the thesis is an area of concern for all parties involved, viz.,
Government Authorities, Students Community, Parents and Academicians, to
name just a few.
Other factors being comparable, for a student the choice is Pune, the Oxford
of the East and the Centre of education, located in the Western Region. There
are institutions in Pune where all the students are from outside the State of
Maharashtra, for obvious reasons of a better industry exposure as well as
better placements as compared to other institutes in remote locations. ln the
above background, Pune offers a vast range of schools, colleges, institutions

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and universities where students prefer to pursue studies selected by them.

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CONCLUSION –
Data collected, analyzed and presentcld in previor"rs Chapters obtained
through quantitative and qualitative research has pr,rvided very valuable &
revealing insights and views about the role thal management education could
provide in promoting entrepreneurship and mucl'r needed initiative required
by the management educational institutions in this direction:
 A large majority of student f€Spr)nsilsnts belongs Io 20-25 years age

group. Research studies do show that there exist celrtain relationships
among socio-economic and demographic factors in the context of
decision making on entrepreneurial activity.
 The study indicates that the In,:liarr woman is more enterprising than
her counterparts elsewhere (men are 1.44 times as likely as women to
start business against generally, men are twice as likely as women to
staft businesses worldwide)
 A common broad consensus arising out of this research is that career
enhancement and job placernents best describes the objective of
management education in Pune'during 2003-2008.
 Students whose fathers have tlreir owrl bus;iness enrol for management
studies so that they could become self-employed and start a business of
their own. Fufther, male studernts are nlore inclined to enrol for
management studies so that they can become self-employed as
compared to female respondents.
 Promoting entrepreneurship, as; part ol management education does
not appear to be focused in Puner as cornpared to initiatives elsewhere
in India. On the contrary industry feedback. is that management
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institutes are not even been able to churn out readily employable
postgraduates.
 On one side, a unanimous feelilrg of students is that the management
institutes do not teach enough on entrepreneurship. On the other hand,
the entrepreneur respondents opine that they partially owe or don't
owe at all to their MBA degree or institute for b,ecorning an
entrepreneur because they were hardly taught how to :;tart a business.
 With the rapidly changing busirress environrnent, today management is
a complex subject. Further change is inelvitable and ceftainly, the age
old method of training (working in one's fathers' office and learn on the
job, rotating through various line functionr;) is neither adequate nor
good enough any more. lt is a fact that in the past (may be during pre-
economic reform era) we have come across a nurmber of successful
entrepreneurs who did not have any formill training or education. No
doubt, an entrepreneur's pedigree is incident,al, but nonetheless,
education could be a useful accelerator and could rCefinitely better
prepare a person to be a successf ul entrepreneur.
 lrrespective of present coverar;e on entrepreneurship in the curriculum,
an overwhelmingly large majority of student respondents feels that a
special curriculum on Entreprerreurship as a specialization subject
should be introduced in Management Institutes with the objective of
generating more "Entrepreneurs" rather tharr just Managers. The
feeling is same among female students as well, though they are less
likely to start their own business as compared to male students.
 The study period coincides with the economic slowdown 'n 2008-2009
{this crisis is the "first low tider fc,r a '/oun,Eer generation that has only
known high tide"), resulting in poor placernents. May be recession is a
good time to encourage B School students to become job creators rather
than job seekers. Another upside of this slowdown in 2008-2009 is that
expectations are becoming realistic on both sides with, perhaps,
unintended ripple effect. "Sturlents may have hit the entrepreneurship
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route in the absence of the usual big packet job offers, but the
experience may shift the focus away from plar:emelnts cclmpletely - at
least in some big business schools - which are a big positive step in the
right direction".
 Entrepreneurs are neither born nor made alone but are a combination
of both born and made. This indir:::ates th,at, like any other individuals,
they don't necessarily have full knc,wlerdge on eintrepreneurship by
birth but given an opportunity to learn they are capable of developing
necessary entrepreneurial skills. Perhaprs, thrr>ugh effective
entrepreneurship education, people can access :;kills and knowledge
needed to start and grow a new business.
 lt is quite apparent and evidr,rnt that it is no more a debatable topic
whether entrepreneurship can be taught in the classroom or should be
taught in the classroom as perc:eived to starl with but the more relevant
issue in the uppermost mind aprpears to be what should be taught
(curriculum) and how. The man,:rgelment education has to be
revamped in a comprehensive manner. Incremental changes are
inadequate. Entrepreneur's talent can be horred through s;tructured
interventions where management institutes can play a big role by
recognizing and nurturing the traits of entrepreneurship anrongst its
students.
 Today the need of the corporate, is the best f it managers who
understand what is happening at the markr:rt place presently and what
would be the market scenario, business env rortment ancl challenges in
the next twothree years. The industry feels that management students,
even after gaining two - year management education, are still not able to
develop new ideas and apply managerial s;tratergies and are not
"industry fit". To bridge this perceived gap, there sh<>uld be an increase
in industry academic collaboration.
 Both sets of respondents (students and entrepreneurs) list positive
attitude as one of the most im6loilant r:haracteristics of an
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entrepreneur. Attitude, even otherwise, is also very important as

pointed out by the Skills Gap Survey Report (2010) "lf ,i rrew MBA
comes to a company with the right attitude, the needed skills r:arr be
acquired on the job. But, if the new MBA does not have the right
attitude, it can be very difficult for the candidate to succeed in his or her
new environment".
Limitations of the study:

One of the limitations faced in this sturly has been the lack of organized data
on Entrepreneurs, Management lnstitutes and the number of students
enrolled for management courses. A study to prepare the baseline data and
further study on the topic could present an interesting lead.
The scope of the study was broad. lHence, it has been really demanding to
maintain the study in a perfect focus. The main limitation of the study is that
rt covers 6nlr7 Pune institutions, as against a large number of similar
institutions i:lcross the country. Thus, extrapolation of the findings based on
Pune institutes, iacro$s India may not be appropriate, though it is apparent
from literature review that entrepreneurship education is taught in pockets
rather than across the broad spectrum of the management institutes that are
spread in almost every corner of the nation.
Secondly, there exists a number of Institutions in Pune that are imparting

management education. Decision is;sur: was whether to consider all the
institutions or the only ones which are recognized by approved competent
authorities like AICTE, University of Purre or Deemed University or likes?
Thirdly, the courses offered by these institutions are of different types -

Degree to Diploma, General Management to Sipe,:ific Functional Management
as also of varied durations. Question was whethr.rr to include all categories of
programmes or only regular MBA courses?

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Considering all the concerned issues arnd keepirrg in mind the scope of the
research, the study focused broadly on recognizerl Management Institutes and
regular management courses (post gra.duate degree and post graduate
diploma).

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1.1 The Background

lndia is at the threshold of the 21st century and moving ahead in

economy, demand a new approach to deal with all types of challenges'The

several factors and by socio-economic, technical, political and ecological

managerial approach, and entrepreneurship education is

important and relevant than ever.

Writekraft Research & Publications LLP

It is a matter of pride that India is getting back its position as an economic

country, it stands at 150th position (approx.) amongst 206 countries in terms

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(change architects, innovators and entrepreneurs). To sustain and maintain its

BY 2050, INDIA IS PROJECTED TO BE

THE THIRD LARGEST ECONOMY IN THE WORLD

g /t0,000 between three

o the next few

India Japan Brazil Russia UK Germany France

India to overtske France in 2018'

CHART 1.1: Largest Economies in 2050

India has completed six decades of Independence and today, country's

growth in the relevant population. This is a unique demographic trend and

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providing higher education for this group is imperative and needs

provided on an unprecedented scale that is challenging. The higher education

Speaking at the 90th annual convocation of the Benaras Hindu University

(BHU), the Prime Minister, Dr. Manmohan Singh, said: "Only 10

India,s youth go to college as against 40-50 percent in the developed

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325 million peoPle (-25 Y")

CHART1.2: India Demographic Profile (2O2O)

Marg, Chanakyapu ri, New Delhi-1 1 002 1, www. knowledgecommission. gov'in

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Access to higher education in terms of the available number of seats in

universities is simply not adequate in relation to the current demand. There

estimated to be hovering around 97o, it has resulted in growing frustration

among the youth. In addition, there is always a problem of underemployment.

Growing unemployment coupled with underemployment of the educated

Be it results of the 57th round of the National Sample Survey Organization

(NSSO)6 or India Labour Report 2006 of Teamlease SeruicesT or any other

available estimates, it is a fact that annual average growth in employment has

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concerned, including corporate, that "the present education system is geared

mis-match of industry/economy expectations vis-d-vis what is being delivered

by most of the educational institutions. To give an example from a

6 NSSO 57th Round, July 2001 - June 2002

Demand, Labour Supply, Labour Laws), A Report by Teamlease Services,

Teamlease studYs 90 Per cent of the employment oPPortunities

vocational training, whereas 90 per cent of country'sschool and college

percentage of the people in the work force are employed in

and resilient entrepreneurship" appears to be a possible solution'Today,

to understand that creating job opportunities by introducing the Quota system

and Reseruations are temporary measures, whereas the country needs

must look at developing entrepreneurial skills amongst people that can

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philosophy of dignity of labour (e.g., plumbers, electricians and carpenters).

to be organized and well directed. That opportunity exists.

their future. Hence there exists immediate requirements for entrepreneurial

growth towards a long-term sustainable solution as also to sustain

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nunuring new entrepreneurS. This forward-looking approach can enable us to

vision of the country. lt is widely acknowledged that Entrepreneurship is a