Dropping out and finishing your studies too: Boon for startup culture?

Sounds like having your cake and eating it too, as IITs and other institutes allow early exits. What does this mean for the dropout culture in startups?

Rahul Dravid was born in Indore, Madhya Pradesh, but grew up in Bengaluru, Karnataka. His parents, imbued with South India’s ethos, wanted him to complete his studies. So he finished his BCom and was 23 when he made his India debut in 1996. Sachin Tendulkar, born four and a half months after Dravid in Mumbai, the City of Dreams, had already been in the Indian team for seven years by the time the latter came along.

What if Dravid had been allowed to drop out and take up cricket as a profession as early as Tendulkar? The Mumbaikar did not go to college and first played for India when he was 16. Chances are, the debate over the best Indian batsman of all time could then be as endless — not decided by the weight of Tendulkar’s statistics — as the ‘GOAT debate’ currently raging in tennis.

Conversely, what if Steve Jobs, Bill Gates, Mark Zuckerberg, or Jack Dorsey had parents seeped in South Indian sensibilities who told their children: “Finish your studies, beta, just in case….”

Chances are, we won’t have Apple, Microsoft, Meta, and Twitter as we know them today. Something similar would have happened to OYO, QuickHeal, and News in Shorts if their founders — Ritesh Agarwal, Kailash Katkar, and Azhar Iqubal — had not been allowed to drop out. The jury is out on whether Rahul Yadav, of Housing.com and 4B Networks, would still be the enfant terrible of Indian startups had he completed his studies at Indian Institute of Technology (IIT) Bombay.

The Dean of Academic Programmes at IIT Bombay, Avinash Mahajan, has revealed that 15 of his students have opted for an early exit since last year, when the provision first came. Made possible by the National Education Policy 2020, IIT Bombay is offering an early exit option to students unable to complete the four-year BTech programme. If they complete 60 per cent of the total credit requirement, they can be awarded a BSc (Engineering) degree after three years.

IIT Delhi has allowed students a temporary suspension of their MTech progress in order to find employment, with a possible return to campus later. IITs Madras, Hyderabad, Jodhpur, and BHU have also included options for multiple entries and exits, either in their vocational courses or on a pilot basis, and are likely to expand the provision to full-time four-year courses.

This gives students the legitimacy to carry the institute’s pixie dust with them even if they leave midway.

Mahesh Murthy, a well-known entrepreneur and investor, who brought up the Dravid versus Tendulkar example in a conversation with Business Standard, wears his dropout badge on his sleeve.
 

“I was earning a salary before I turned 18 and was a mid-level manager by the time my classmates finished their BTech. I learnt earlier than them, earned more, and grew faster. Eventually, I set up my own shop before they did,” says Murthy.

But not everyone is cut from the same cloth. There are startup founders — successful ones — who think differently.

“I would rather not speak as a college dropout,” says the co-founder of a Gurgaon-based health technology startup, who refuses to identify herself in a story about dropouts, though she is one of the hordes that left their science or technology degree-programmes midway to pursue their entrepreneurial dreams in the early- to mid-2010s. “Quitting college is a tough decision and involves sacrifices,” she says.

Several other founders echo her words. Some say they would not drop out if they had to do it all over again.  

The good news is, they won’t have to.

“Though the provision for an early exit, where students could convert their degree into a diploma, did exist in the IITs, it was for students who failed to fulfil certain academic criteria. It was seen in a negative light. Now, students can avail of this provision as a choice,” says V Ramgopal Rao, former director, IIT Delhi.

It is not just the IITs; the National Institute of Technology, Srinagar, the Delhi University, and the Lucknow University, among others, are either updating or introducing provisions for early exits and late entries to their undergraduate science and technology programmes.

“As more institutions adopt this approach, it will encourage students to explore entrepreneurial ventures with more confidence, knowing they have the option to re-enter academia. The startup ecosystem will benefit from a diverse pool of talented individuals equipped with both formal education as well as entrepreneurial spirit,” says Mayank Kumar, co-founder and managing director, upGrad, an upskilling education technology company. 

Eeshan Lokhande, director and co-founder of Supercross India, a Pune-based racing and motorsports startup, had to dropout of Symbiosis International University, Pune. Opting out of formal education, he says, is not a decision to be taken lightly. “The provision of an early exit in the third year can prove to be a brilliant opportunity. Striking a balance between academic pursuits and entrepreneurial aspirations can foster a well-rounded growth trajectory,” he says.

However, IITs do not only create entrepreneurs. A large number of their graduates do not even become engineers; they end up going into finance, consulting, or other multinational jobs. Many join public service through the civil services examination.

This lot, the non-entrepreneurs, had a bleak chance of pursuing their ambitions if they dropped out. Now, they can, without having to put in all the years required for the degree course.

Murthy insists that most employers do not care how many years someone spent at the IIT. What matters to them is that the person came through the rigour of the IIT selection process and therefore must be blessed with special talent.

Now, with the early exit plan, that special talent can be adorned with institutional approval. It may be a BSc (Engineering) degree, instead of a B Tech, but can ward off the dreaded line that kept Dravid yoked: “Just in case, beta…”

Vox Industria 

"The formalisation of early exits in the Indian higher education empower students with valuable and recognized credentials while also boosting their employability in various industries. As more and more institutions adopt this approach and make it mainstream, it will encourage students to explore entrepreneurial ventures with confidence, knowing they have the option to re-enter academia, if needed." ~ Mayank Kumar, co-founder and MD, upGrad

“Another way to address this challenge is to encourage such aspiring students to pursue their startup vision while being encouraged by the institution to complete their studies. The system should also have provisions for dropouts to continue their education at a later stage. Alternatively micro credentials and nano degrees by these prestigious institutions should also be encouraged and accepted.” ~ Dr Christopher Abraham PhD.,FCIM | CEO & Head - Dubai Campus, Director - Executive Education, professor of Leadership, Design Thinking & Organisational Behaviour at S P Jain School of Global Management.

“The National Education Policy (NEP) 2020, reflects the aspirations of a new India, whether that be the K-12 education or at the university level. Many of the existing students are channelizing these highly valued attributes towards enriching India’s vibrant startup ecosystem, by taking a leap of faith into the world of entrepreneurship, at a very early stage. This decision enables many of such emerging entrepreneurs and problem solvers, to accelerate and achieve viability when the timing is right, and their product-market fit is evidently at the appropriate juncture.” ~ Spokesperson Ranjit Gupta, co-founder, Third Rock Energy, and an IIT-B alumnus.

“In my opinion, they should also consider allowing students to join as co-founders in startups that are no more than three years old, providing them with an opportunity to be part of a startup from its inception. However, this may lead to some students attempting to solve non-existent problems, so implementing a review process where established alumni evaluate new ideas or encouraging them to join newer startups could be beneficial. Moreover, students should be eligible for a degree based on different stages of the organization, measured against a credit score. Accumulating these credits should be sufficient to fulfill their final year requirements and earn them a degree.” ~ Ravi Kumar founder & CEO – udChalo

Young people are increasingly willing to take risks, pursue their aspirations, and question conventional definitions of success. The formalization of early exits in the Indian higher education sector has the potential to boost job creation and provide alternative career path for first time founders in the startup ecosystem. However, having a re-entry mechanism will also be crucial because , successfully exiting a formal education. System and creating a sustainable business is as difficult as it can get. ~ Sumit Kumar, founder and CEO at Headsup Corporation

"Formalising early exit options, such as IIT Bombay's decision to offer an exit point in the third year, could lead to a positive impact on employment generation and the growth of start-up interest. However, to develop and nurture young ventures, a more robust support ecosystem is still needed, including incubators and funding opportunities." ~ Radhika Shrivastava, executive director, FIIB