MBA Career Risks and Startups

Startups have emerged as the spirit of Indian ecosystem in last few years. We are constantly seeing a rise of unicorns and the scaled up levels of funding that are infused towards the support and growth of these unicorns. The investment trends also indicate the mood of the investors that went from grim to encouraging towards startups during recent times. India is a thriving market for startup companies and the scope is exponential. Startups have been reluctant in hiring MBAs till recent times but with the latest shifts they have embraced MBAs in larger numbers. Working for startups may have numerous perks, yet several career risks are involved. It is no secret that more startup companies fail to establish themselves in competitive world of business than the ones that succeed. But this surely would not mean that taking up a job here will not fetch you valuable experiences.

 

For these new ventures, scaling a business, needs people with excellent management skills and attributes. And for the MBA graduates working with them would mean the ability to see themselves making an impact immediately and growing alongside the firm. Most of the times, it is a win-win situation for both the parties.

 

Let us understand the tradeoffs of working in startups. For those who intend to join a starting stage business, here are a few things to expect:

 

Advantages of Joining a Startup for Career

An Exciting Designation

When working with top companies, there is a schedule for promotions generally followed by defined appraisal procedures. But the startups in the early stages do not have such set of rules; therefore this can fast forward your career even beyond your imaginations. While a blue chip company looks at your experience but as the time passes by it matters less and your performance takes a front seat for your path forward. In a startup you grow as the company grows and you receive responsibilities and promotions irrespective of time and policy boundations.  Although, these new ventures at this stage may not have structured processes, but the growth prospects can also turn out to be manifolds. Success depends much on your obsessiveness to prove.

 

An enriched resume

For a startup, an MBA graduate can make huge contributions. The new joiners need to work and achieve much more with having to undertake various roles and various opportunities. The job roles require everything to be done from new launches to gaining customer base and scrutinizing results etc. This produces some really good bullets to add to your Resume.  There are no job description limitations so you can move through many facets of business.

 

Diverse Thought Process

The blue chips and big corporates have stipulated path prescribed for doing things. This is based on what was being done from their past experiences.  Here you are required to design, build and create by making use of vivid skill sets instead of following protocols. This fosters novel and adaptive thinking and generates abilities to think beyond. There will be more room for innovation, interaction and this will steeply raise your learning curve. The problems are hence handled in a different manner and constant efforts to find solutions are always stirred.

 

Utilization of MBA Skillsets in Entirety

In a startup you see the rise of a company from the ground. You get to know business, company culture, values and are a part of everything. At least you can be a key employee, a spectator and learn more about the most important strategic decisions through the progression of company.

 

Working with a Passionate Team

Each step by a startup is directed towards finding solutions. Nothing is predefined and systems are still at a developing stage in these companies. It takes a team of highly self-driven, capable people to take the challenge of building new things from the scratch. To work in new ventures is one big challenge and a right team is most important of all the elements. This has to be a team that wants to construct a Google again. This is a small group of passionate people who work for company’s success.  You will experience quest and adventure, working with such an energetic lot. So what you put in will be clearly visible and valuable to the enterprise.

 

 

But this kind of life is not everyone’s cup of tea.  A number of new businesses that ventured in the beginning of this century now stand strong after a successful rise. But starting a new project is not all that rosy, like it looks. So many new businesses give up not before it is long. There is a lot of risk associated with working in such environments. Here is a little consideration on what could be the risks involved:

 

Disadvantages of Working with Startups

No Formal Training

This is not a schoolroom. You are hired with an expectation of reaching the running ground fast and you need to learn rapidly all on your own. There are going to be no training sessions and big orientation groups to get you started.

Perks

You are going to miss out on the perks like training in fancy venues, cafeteria, gyms, luxe office areas etc.

Unstructured Environment

Processes and systems would not be in place in these newly born companies. The ones that are actually critical to the functioning of company are the only processes in place. There are lesser employees, first-time leaders and no policy handbooks to refer. This leads to inefficiency, budget discrepancies, no timelines etc.

 

Responsibilities beyond the Job Descriptions

Even when your job descriptions does not state, you get drawn towards the burning issues of the company. Since there are lesser people to contribute, everyone is taken into the loop for finding faster resolutions. Also you need to carry on multiple tasks at the same time as there is lack of human and other resources.

 

Intense Work Environment

There is a lot of energy that goes into working in new ventures. A lot of quick moves that are required to be taken in short time span may trigger arguments and disagreements. People are highly focused because, to have the things done is not just a necessity but is a matter of survival too.

 

Fear of Failure

Despite of all, there is a panic about failure working with startups. But remember that many successful businesses were started with just an idea, and failure was just a path to success. It is not always bad to fail,so never loose enthusiasm.

 

Conclusion:

Working for start-ups is not a bad idea although it seems risky.  New businesses are more progressive in nature and make room for creativity and individualism. Those working in startups turn out to be very abled in their areas because they work on building something of value. More than a job, it is a mission and a path taken to do something one firmly believes in.

 

So how do you know if it is worth taking a risk? Since the career risks attached are bigger, take some time to figure out more about the company you are going to join.  Get ready with some appropriate questions to ask during your Interview. Gauge about company’s past records. Know more about the marketplace position of the company, find out more about the leadership team and their background. Thirdly, understand where is the company being funded from and what future plan is in place for company’s future funding requirements.

 

Do not forget to seek guidance from your mentors and experienced people around. Since everyone may not think in the same direction, do your research well. Read articles and latest developments about the company. Find out more about people who joined them recently and about their backgrounds. This may give you a fair idea about which path to choose when you want to decide.  It only requires a better approach and some calculations to arrive upon a verdict.

 

Private Universities in India – Pros and Cons

 

India’s higher education system is a saga of some blunt and contradictory truths. Indias Top Colleges are run by governments but private universities run the smartest of the universities of the country. The reality is that by combining seats from both the sectors, education industry cannot accommodate millions of students graduating each year. Since supply is not in line with the demand, quality turns into serious danger and Indians face a major disadvantage. Most of the top Colleges are still concentrated in the advanced economies and India is an emerging market. Private universities like Jain University, Christ University, Amity University, and Manipal Academy of Higher Education have existed for a long and have gathered higher rankings year on year. Since it takes time for universities to establish a reputation, Government should allow more universities to be created immediately. Over time, these private universities will be able to establish themselves as reputed institutions. Simultaneously there is a requirement of sound regulation of new universities to save students from below average institutions and to abolish the paranoia about private institutions. The only parameter to attract students should be the upward trajectory and not the race to the bottom.

The British had started university system in India in 1857 as they established the Universities of Madras, Calcutta, and Bombay. By 2019, India recorded about 1000 universities and 51000 institutes for higher education and 3.74 crores students in this sector. The rules and regulations for the formation, financing, and functioning of such organizations are dimmer.  There is a requirement of legislative enactments in the state assembly in order to set up a private university. Also, there are some non-favorable consequences of privatizing higher education. In 2005 when the Supreme Court hit down a law, 112 private universities and 30,000 students were affected.

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The rapid growth of private universities is even clearer from the statistics that since 2008, more than 15 universities were created every year and more than 30 universities started in 2013. These universities are to a great extent clustered around particular cities or areas.

In the recent years, Indian economy is being restructured with a few reforms, Education policy changes and is moving towards liberalization, privatization, and globalization. Consequently, privatization in education sector has brought in some path-breaking changes in the higher education sector. Privatization now allows private parties like individual organizations and other non-government bodies to run education institutes. This gave a whole new dimension to the education system in India.  The privatization took place to address so many issues like:

• Competitive efficiency: There arose a need for efficiency to pave way for a more competitive environment. Private ownerships and controls ensure better allocation of resources and work efficiently.

• Population: Considering India’s population and its growth rate more private institutes are needed to cater to the needs of higher education among population.

• Increasing number of schools: As the numbers of schools are growing in the country, the demand for higher education is also pushed further. Since the government will not be able to meet such a rapid growing demand, the private universities need to set in to accommodate this demand and supply.

• Need for fulfillment of skilled manpower: Public institutes have limited freedom; hence there is a lesser initiative in this sector. The private players are usually quick in responding to the changing demands of the market. So they can freely initiate modern and advanced courses to fulfill the demand of the upcoming student force. 

Now let us understand a few boons and banes of the private universities

Pros of Private Universities in India

 As the government is decentralizing in the education sector, the burden for higher education in the country will be reduced for the government. The government alone had to invest in the huge capital, resources and technology for the advancement in the field to stand steady in the global competition. Private participation will guarantee better infrastructure, competition, and quality in this sector.

· More employments will be joined in education sector as the industry will grow left and right as per the demand of the situation.

· Some public sector colleges have not been able to impart quality education, which is visible from the fact that only 3 Indian institutes reached the top 200 universities of the world according to “Quacquarelli Symonds (QS) World University Rankings” 2018. The private sector universities will at least approve quality education to the ones who can afford it. As more universities are introduced, the competition between them will lead to an improvement in the quality of education. The curriculums in private colleges are rigorous and learning is emphasized upon more.

· The private colleges have a closely knit community, therefore the students can communicate closely with professors. The classrooms will be dynamic, unlike a public college. Students are also much committed to their academics and active in classroom discussions. Complete coursework gives a full insight into the coursework.

· The lecturers at private universities have proven track records and are more interested in the achievements of their students.

· Private institutes also offer merit scholarships. With good academic scores, students get a preference and subsidized fee structure to be able to join these schools.

· Most of the large private colleges also have a limited class size to make certain that the students grasp the subjects well. There is a low professor-to-student ratio which would mean more engaged student participation. A small group of students has quality discussions.

· An important attraction of the private universities is their training and placement facility. Training and placements are important activities in private universities. They collaborate with industries for students’ internships and placements. The student placement cells are very efficient in interacting with companies and organizations to nurture the university.

·Students are supported by industry professionals who are made to interact with the students for larger exposure. They provide mentoring and career guidance through their lectures and seminars etc.

·Privatization gives way to many initiatives in educational reforms. Teaching methods are innovated and evaluated to provide better quality education. The courses and subjects are provisioned according to the market demands. Students get a provision of a wide choice of courses and subjects.    

The curriculum is shaped according to global, national, and local needs. Private universities offer courses that are market driven and have a better scope in the long run. 

· here is a proper allocation of human and physical resources.

Cons of Private Universities in India

·         The tuition fees are too high in Private universities and it makes it difficult for all students to access the kind of education they need. Poor is affected badly due to this disparity in fee structure.

·         There is always some apprehension among staff about job security.

·         Many private colleges do not provision graduate or doctoral degrees. There are students who want to pursue doctoral degrees.

·         Colleges that are small may not be able to offer a wide range of major subjects like larger public universities do. Small private schools have smaller departments and less course offerings.

·         Funds by the organization for running the education institutes may be misused by the owners.

·         Reservation in educational institutions is a positive action. It helped backward sections of society to compete with privileged classes. Purely autonomous organizations do not offer reservations. 

 Conclusion:-

Private higher education has turned very competitive with an increase in the number of academic institutions. Due to this, they put continuous and relentless efforts for their survival. The private universities in India have responded to higher demand in higher education by absorbing a substantial number of students. 

Private universities have earned a good name over a period of time. They also provide job oriented professional courses and offer dual degrees. Their links with corporates, placement efficiencies, pass percentage, quick decision making process attract more students.

But Private universities also face the absence of senior experienced teachers, inadequate financing and not getting quality students. They emphasize professional subjects rather than traditional ones. Many of these universities are in their initial stages of growth. A lot of research work is still required. More research-oriented facilities, identifying core areas of expertise, motivating faculty to do research needs to be done by finding time and sources of funds.

Privatization supports higher competitive advantages in the education sector. Although there are some manipulations they can be managed by proper rules and regulations. Pros and cons will always be there but governmental interventions can groom private sector institutions effectively.

Also Read:

• Top MBA College in Jaipur
• Top 100 MBA Colleges in India 
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• Top 10 MBA College in India