Entrepreneurship Education in India
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1 Entrepreneurship Education in India Trend and Factors Assessment Published: June 2011 SECTOR FOCUS Education
2 Table of Contents 1. Introduction Key Takeaways Research Methodology Market Definition Entrepreneurship Education in India Background Impact of Recession on Entrepreneurship Need for Entrepreneurship Education Market for Entrepreneurship Education in India Recent Trends Current Market Size and Forecast Market Segmentation Growth Drivers Aspirations and Independency Success Stories from India and Abroad Liberalization and Favorable Business Environment Unemployment and Unemployability Carving a Niche Growth Barriers Awareness Regarding Need for Entrepreneurship Education Shortage of Quality Entrepreneurship Faculty Lack of Quality Course Content Cost of Entrepreneurship Education Lack of Government support Areas of Potential Opportunities Small and Medium Enterprises (SMEs) Students in Higher Education Market Strategies for India from International Experience Policy to Support Entrepreneurship Education Curriculum Development Teacher Development
3 7.4. Integrating Entrepreneurship with Formal Education Private Sector Participation Networking Potential Roles for the Government Lessons to Learn from United States Best Practices Case Studies Profiles of Key Players Conclusions and Recommendations List of Figures Figure 1: Entrepreneurial Ecosystem Figure 2: Number of Students Enrolled in Entrepreneurship Programs, Figure 3: Revenue from Entrepreneurship Education Programs in INR Million, Figure 4: Segmentation of Students Enrolled in Entrepreneurship Programs Figure 5: Top 5 Growth Drivers for Entrepreneurship Education Figure 6: Response to Aspirations and Independency as Growth Driver Figure 7: Response to Success Stories from India and Abroad as Growth Driver Figure 8: Response to Liberalisation and Favourable Business Environment as Growth Driver Figure 9: Response to Unemployment and Unemployability as Growth Driver Figure 10: Response to Carving a Niche as Growth Driver Figure 11: Top 5 Growth Barriers for Entrepreneurship Education in India Figure 12: Response to Lack of Awareness as Growth Barrier Figure 13: Response to Shortage of Quality Entrepreneurship Faculty as Growth Barriers Figure 14: Response to Lack of Quality Course Content as Growth Barrier Figure 15: Response to Cost of Education as a Growth Barrier Figure 16: Response to Lack of Government Support as a Growth Barrier Figure 17: Total Number of SME Units in India in Millions, Figure 18: Student Enrolment in Higher Education in India in Millions, Figure 19: International Entrepreneurial Activities, Figure 20: Constituents of an Effective Entrepreneurship Program
4 1. Introduction Entrepreneurship Education in India report analyses the growing market for Entrepreneurship education in the country and assess some of the key factors that are influencing growth and strategies and good practices that industry has to follow in order to have a world class entrepreneurial education system. Indagatio Research has used primary and secondary research to estimate the current market sizing, segmentation and market forecast. We have conducted surveys and interviews to evaluate growth drivers and growth barriers. Report further analyses future opportunity areas and organizations that are active in India s Entrepreneurship education landscape Key Takeaways Liberalization and opening up of Indian economy in 1990s pushed entrepreneurship in the country with removal of barriers to start business, easy availability of finance and setting up of institutions for the development of entrepreneurial talent. Entrepreneurship education is still at nascent stage in India, with only 44,500 students enrolled for entrepreneurship programs, and this number is expected to grow at a CAGR of 20.4% to reach 54,700 by Revenues from Entrepreneurship education programs reached INR7.9 billion in 2010 and are estimated to grow at a CAGR of 13.7% to INR10.7 billion by In 2010, there were some 1,500 students getting Entrepreneurship education from the institutions that are solely into Entrepreneurship education, while 4,700 students had enrolled to entrepreneurship programs at various business schools and institutions across India. Aspiration to do big and independently achieve success has emerged as the top reason driving the growth of entrepreneurship programs, followed by inspiration from Indian and foreign innovators, liberalization and favorable business environment and unemployment. Unawareness about the advantages of Entrepreneurship education, shortage of quality educators and absence of quality content has been some of the hindrances for future growth of the market. 4
5 1.2. Research Methodology Indagatio Research s industry and company reports are based on the primary as well as secondary research conducted by its in-house team of researchers and analysts. Exhaustive desk research is conducted to source qualitative and quantitative data from a variety of secondary resources like: industry associations and trade journals national government websites company websites annual reports and news articles and press releases Indagatio Research then conducts primary research using surveys and interviews to fill in the gaps and incorporate the information that is not otherwise available. All the collected data is then send to our team of analysts, who perform data analysis and forecasting using various statistical tools, including MS Excel and SPSS. Final data is then validated by our team of industry specialists and experts and if required, data is adjusted as per their directions. From time to time we update our reports in order to give our clients most up to date information Market Definition Entrepreneurship education industry includes all the institutes that are in some way or other offer courses and programs to develop entrepreneurial skills among the students. For this report Entrepreneurship education institutions are categorize as follows: Institute Dedicated to Entrepreneurship these institutions offer only entrepreneurship and related programs Institute Offering Entrepreneurship Programs institutions under this category provide graduate and post-graduate courses in entrepreneurship. Institute Offering Entrepreneurship as Subject these includes institutions that offer entrepreneurship as one of the subjects in their curriculum 5
6 4. Growth Drivers Indagatio research conducted the survey to ascertain the factors that have been the driver for Entrepreneurship education in India. For this leading educational institutions and their representatives were surveyed. On the basis of their opinions and perspectives, following five have emerged as the top growth drivers for Entrepreneurship education in India. Aspiration to do big and independently achieve success Innovators and business leaders as their role models Opening up of Indian economy and access to international markets Limited employment opportunities in traditional industry sectors Carving a niche for themselves vis-à-vis a regular management study Based on the survey and personal interviews, Indagatio Research designed a matrix, whereby each of these growth drivers were evaluated and were given points on a scale of 1 to 10 and 10 being the highest. Graph below highlights the top 5 growth drivers ranked on the bases of the points they achieved. Figure 5: Top 5 Growth Drivers for Entrepreneurship Education Source: Indagatio Research Analysis 15
7 4.1. Aspirations and Independency Seeing first generation Indians succeed in their own businesses, gave Indian youth lot of motivation to start on their own. Globalization, coupled with changing socio-economic nature of India society from family oriented to nuclear-family structure, had impacted the way India do business. The favorable environment acted as a boon to the youth nurturing thought to be independent who thought it to be the right time to start a business. These aspirations lead to need for a push up in terms of business education and handholding, resulting in phenomenal growth in business education (MBA) and Entrepreneurship education. 73.3% of respondents considered it as the most important factor while 13.3% each thought of it as somewhat important and important. Figure 6: Response to Aspirations and Independency as Growth Driver Source: Indagatio Research Analysis 4.2. Success Stories from India and Abroad In last two decades, many success stories have emerged from India; from global companies like Infosys, Wipro, TCS, etc. to innovators and world business leaders like Narayana Murthy, Lakshmi Mittal, Ratan Tata, etc. On international front, likes of Bill Gates, Warren Buffett, Mark Zuckerberg have encouraged young Indians to dream big and take risks to start up their enterprises and make them global business houses. This has further promoted Entrepreneurship education in the country. In our survey, all respondents considered this as an important factor. For 46.7%, it was the most important factor while 40% considered it somewhat important. 16
8 7. Market Strategies for India from International Experience 7.1. Policy to Support Entrepreneurship Education Entrepreneurship education policy is closely interlinked with overall entrepreneurship policy as well as economic and social development objectives. It should be therefore reflected in a country s national economic and social development plans or strategies. It is a lifelong learning process, starting as early as elementary school and continuing through all levels of education, including adult education. It should build positive attitudes towards business and develop entrepreneurial competencies to successfully plan, start and manage a business. To effectively implement Entrepreneurship education, both top-down and bottom-up approaches are necessary. Top-down approach requires the commitment of the most senior policymakers. Building this commitment is not easy often Entrepreneurship education has to be framed within the context of its contribution to economic and social growth to attract the proper attention. Bottom-up approach requires champions at the local or regional level who can help drive initiatives on the ground. Figure 19: International Entrepreneurial Activities, Source: Global Entrepreneurship Monitor 2010 In designing policy approaches to Entrepreneurship education, it is also important to recognize the type of entrepreneurship and to make a distinction between opportunity and necessity entrepreneurship. The Global Entrepreneurship Monitor (GEM) measures levels of entrepreneurial 29
9 11. Profiles of Key Players 1. Entrepreneurship Development Institute of India (EDI) Registered Address Entrepreneurship Development Institute of India (EDI) P.O. Bhat , Dist. Gandhinagar, Gujarat, India. Phone: Fax: Website: Brief Profile Entrepreneurship Development Institute of India (EDI) is an autonomous body and not-for profit institution backed by apex institutions like IDBI Bank, IFCI Ltd., ICICI Ltd., and State Bank of India (SBI). EDI offers post graduate, open learning and entrepreneurship research programs such as PG Diploma in business management Business Entrepreneurship, PG diploma in management development sector & social entrepreneurship, Entrepreneurship education and research etc. The institute was setup in 1983 and is based in Gujarat with regional offices at Lucknow, Bangaluru, and Guwahati. Presence Pan India with major centers in Ahmedabad, Lucknow, Guwahati, Bhubneshwar, and Bengaluru. The institute has also collaborated with other domestic and international institutes. Key Programs Post Graduate Diploma in Management-Business Entrepreneurship Duration: 24 Months; Fees: INR 690,000 Post Graduate Diploma in Management-Development Sector & Social Entrepreneurship Duration: 24 Months; Fees: INR 455,000 Faculties Dinesh Awasthi (Director) - Ph.D. (Economics) Sunil Shukla (Chairperson) - Ph.D. (Psychology) Tarun Bedi - B.E. (Civil), M.A. (Sociology) Ajay Dixit BA V. Padmanand - M.Phil CRENIEO, M.Phil Cambridge, PGDMM C.R. Patnaik - PGDM N. Ramesh - M.Sc. (Chemistry) S.B. Sareen - Diploma in Textile Technology,D.I.M,D.I.M.O(Hons.),D.M.M Prakash Solanki - B.Sc. (Chem.), PGDPPT,PGDBM,PGDRD (IGNOU),LL.M.,M.A. (Sociology) Pramod Srivastava - M.A. (Economics) P.N. Srivastava - M.Com V.S. Sukumaran - LL.B.,PGDHRD,PGDTD,PGDM,MBA(IGNOU) V. G. Patel - Ph.D., Former Vice President and Founder Director, EDI Strategies and Plans regarding Entrepreneurship Education To augment the supply of new entrepreneurs through education, research & training To increase competitiveness of Indian SMEs Enhancing competitiveness of SMEs through cluster development To create a cadre of trained social entrepreneurs 54
10 About Indagatio Research Formed in 2010, New Delhi (India) based Indagatio Research is a leading market research and information analysis company, focused on delivering quality research services. Our focus is on delivering quality services to business professionals, corporates, asset management firms, advisory and consulting companies across various industries including Financial Services, Technology & Telecommunication, Energy, Automobiles, Aerospace and Defense, Consumer Discretionary and Healthcare. Our products and services bring information and analysis through primary and secondary data research and provide forecasting on market trends to help clients identify prospective growth areas and gain competitive edge. Contact Us If you have any queries about this report or would like further information, please contact info@indagatioresearch.com. DISCLAIMER All Rights Reserved. All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, Indagatio Research accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. The publication is sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication - in papers, reports, or opinions prepared for any other person - it is agreed that it will be sourced to Indagatio Research. 74
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