With the current race of Increasing fees by most of the management institutes (I would not like to point out to specific institute), the students are awarded with pink chit of heavy loan which they have to repay as soon as they complete the education.
In this situation, even though student wish to think or do out of the box and step for entrepreneurship or higher education, it is very difficult to do so as banks starts chasing them, the moment you step out of college. This creates the sense of insecurity within student and which destroys their power to go extramile.
How are institutes prepared to support student who would like to join Non for Profit organisation or want to start something of their own because ultimately they have to repay loan. Won’t this discourage students stepping out of placement which has now become a synonym for A BOLD step. Is it a good idea to burden students with huge loans at the start of their career?
Our Prime Minister has vision to grow startups and has also announced several measures to ease the registration process and build a startup friendly environment. But irony is how can the young generation think on implementing their ideas into action as they are already bitten by Loan bug and they are bound to do a 9-6 job and replay the loan.
Somewhere there is a mismatch of what Government wants and what exactly educational institutes are providing. It’s a disgrace when Educational Institutes talks about Corpus and ROI as they are not meant to be a profitable organisation. Infact most of them are registered under Society act. Institutes justify this on the name of sustainability but at what cost?
Is sustainability at the cost of killing the ideas of students justified?
Or is Sustainability at the cost of destroying creativity justified?
Even the kind of culture which is getting developed among students is how to get maximum package during Placements. The day students steps inside the college, entire duration of course, the maximum focus is on getting placement rather than education and creativity. Among the student running bodies, Placement cell is the most popular cell among students and everyone die to be part of it as they see this as a step towards getting good salary package.
Creativity is getting seized among students and slowly they are becoming Zombies for whom only the ROI is how much package they received during college placement.
The college also comes up with fancy figures and attract the students. While most of them are also not audited reports though.
Then how government can fulfill the dream of startup vision when educational institutes will not support.
Infact if these educational institutes wants to make money and build corpus, they should start providing loans to students and deduct the EMI from salary of students only. It will add to their corpus by getting Interest on loan from students.
Also, if any student do not get placement, do educational institutes dare to return their fees from their so called Corpus?
Sometimes I wonder if they are Business Education institutes or Business Making Institutes?
The question arises here is, Do these educational Institutes should re-strategize their revenue model. Most of the management institutes generate revenue from Fees charged to students (which accounts the major chunk), through corporate management development programs, consultancy etc. But very few Institute believes that Investing on start-ups can be a great source of revenue and also brand equity get increased.
The classic example is of Stanford University which incubated Google Inc and today it’s a trillion dollar company and Stanford has stake in the company. The university investment at initial phase of Google provided them 1.8 million shares when Google Inc went public in year 2004 which is a big number.
Hence, Every management Institute should think towards changing the revenue model and include Investing in incubating start-ups within campus to get long term revenue and which justifies their current argument of sustenance model by these institutes. Atleast 20% of batch must be tuned for starting their own ventures.
Critics are welcome..