However, India also has a high unemployment rate, especially among young people. According to the Centre for Monitoring Indian Economy, the unemployment rate among young people in India was 23.6% in January 2023.
One way for unplaced graduates to address the unemployment challenge is to start their own businesses. Entrepreneurship can be a great way for unplaced graduates to create their own jobs and pursue their passions.
Benefits of entrepreneurship for unplaced graduates
Entrepreneurship is the process of starting and running your own business. It involves developing a business idea, creating a business plan, and launching and growing your business.
There are many reasons why entrepreneurship is a good option for unplaced graduates. Here are a few:
- You can be your own boss: When you start your own business, you have more freedom. You get to make your own decisions and set your own hours. But note, you are also responsible for failures.
- You can pursue your passions: If you have a business idea that you are passionate about, entrepreneurship can be a great way to pursue it.
- You can make a difference in the world: By starting your own business, you can create jobs, solve problems, and make a positive impact on the world.
- You can earn a good living: Entrepreneurs have the potential to earn a very good living. If your business is successful, you can earn more money than you would ever be able to earn as an employee.
The benefits of starting your own business after unsuccessful placements
- You have the time and energy: When you are fresh out of college, you have the time and energy to put into starting a business. You are also not as likely to have other commitments, such as a family or mortgage.
- You are not afraid of failure: Graduates are often less afraid of failure than older people. This is because they have not yet built up the same level of risk aversion.
- You have access to resources: There are many resources available to help graduates start businesses. These resources include government programs, business incubators, and angel investors.
How to start an Entrepreneurial journey
If you are thinking about starting your own business, here are a few steps you can take:
- Identify your business idea. What are your passions and interests? What are your skills and talents? What problems can you solve for others? How can you create a unique value proposition?
- Develop your business plan. Your business plan should include your business goals, target market, products or services, revenue model, costs and expenses, and financial projections.
- Launch your business. This involves choosing a business structure, registering your business, obtaining the necessary licenses and permits, setting up your business infrastructure, and marketing and promoting your business.
- Run and grow your business. This involves managing your finances, providing customer service, hiring and managing employees, dealing with challenges and setbacks, and expanding your business.
Identifying your business idea
The first step to starting your own business is to identify a business idea. You can do this by brainstorming a list of your passions, interests, skills, and talents. You can also look for problems that need to be solved or opportunities that you can exploit.
Once you have a few business ideas, you need to evaluate them to see which one is the most viable. You need to consider factors such as your target market, competition, and financial feasibility.
Developing your business plan
Once you have chosen a business idea, you need to develop a business plan. Your business plan should include the following sections:
- Executive summary: This is a one-page overview of your business plan that highlights your key points.
- Business description: This section provides a more detailed description of your business, including your products or services, target market, and competitive advantage.
- Marketing plan: This section outlines your marketing strategy for reaching and attracting customers.
- Financial projections: This section includes your financial projections for the next three to five years.
Launching your business
Once you have developed your business plan, you need to launch your business. This involves the following steps:
- Choosing a business structure: There are three main types of business structures: sole proprietorship, partnership, and corporation. You need to choose the business structure that is right for your business.
- Registering your business: You need to register your business with the government. This process varies depending on the type of business structure you choose.
- Obtaining the necessary licenses and permits: You may need to obtain certain licenses and permits to operate your business. The specific licenses and permits you need will vary depending on the type of business you operate and the location where you operate it.
- Setting up your business infrastructure: This involves setting up your business location, purchasing equipment and supplies, and hiring employees (if needed).
- Marketing and promoting your business: You need to market and promote your business to reach and attract customers. You can do this through a variety of channels, such as online marketing, social media marketing, and word-of-mouth marketing.
Running and growing your business
Once you have launched your business, you need to focus on running and growing it. This involves the following:
- Managing your finances: You need to carefully manage your finances to ensure that your business is profitable. This involves tracking your income and expenses, and making sure that you are not spending more money than you are bringing in.
- Providing customer service: You need to provide excellent customer service to your customers. This means being responsive to their needs and resolving any issues they may have quickly and efficiently.
- Hiring and managing employees: If you have employees, you need to hire and manage them effectively. This involves setting clear expectations, providing training, and motivating them to perform their best.
- Dealing with challenges and setbacks: Every business faces challenges and setbacks. You need to be able to deal with these challenges effectively and learn from your mistakes.
- Expanding your business: Once your business is successful, you may want to consider expanding it. This could involve opening new locations, offering new products or services, or entering new markets.
Government initiatives that support entrepreneurship in India
The Indian government has launched a number of initiatives to support entrepreneurship in the country. Some of these initiatives include:
- StartUp India: StartUp India is a flagship initiative of the Government of India to promote entrepreneurship and startup culture in the country. The initiative provides a number of tax benefits and other incentives to startups.
- Make in India: Make in India is another flagship initiative of the Government of India to promote manufacturing in the country. The initiative provides a number of tax benefits and other incentives to manufacturers.
- Skill India: Skill India is a mission of the Government of India to train and certify young people in various skills. The mission aims to make India the world’s skill capital by 2022.
Successful entrepreneurs who started their businesses after unsuccessful placements:
- Ritesh Agarwal: Ritesh Agarwal is the founder and CEO of OYO Rooms, India’s largest hotel chain. He started OYO Rooms in 2013 at the age of 19.
- Byju Raveendran: Byju Raveendran is the founder and CEO of Byju’s, India’s largest online education company. He started Byju’s in 2011.
- Ankita Bhati: Ankita Bhati is the founder and CEO of Lipi, a social commerce platform for women in India. She started Lipi in 2019.
- J.K. Rowling: Rowling was a single mother living on welfare when she wrote the first Harry Potter book. She has since become one of the richest authors in the world.
- Mark Zuckerberg: Zuckerberg was rejected from several Ivy League schools, including Harvard. He went on to found Facebook, which is now one of the most popular social media platforms in the world.
Entrepreneurship in India is set to grow
The Government of India has launched a number of initiatives to support entrepreneurship in the country. There are many examples of successful entrepreneurs in India. The Indian startup ecosystem is growing rapidly.
- According to a report by NASSCOM, the number of startups in India increased from 2,500 in 2014 to 25,000 in 2022.
- According to a report by KPMG, the Indian startup ecosystem is expected to reach a valuation of $1 trillion by 2025.
- According to a report by Startup India, over 75% of startups in India are founded by young people under the age of 35.
Entrepreneurship can be a great way for unplaced graduates in India to create their own jobs and pursue their passions.
Tips for raising capital for your business
- Self-funding: This means using your own personal savings to finance your business.
- Bootstrapping: This means using your own skills and resources to start and grow your business without any outside investment.
- Crowdfunding: This involves raising money from a large number of people through online platforms such as Kickstarter and Indiegogo.
- Angel investors: These are individuals who invest their own money in early-stage businesses.
- Venture capitalists: These are companies that invest in high-growth startups.
Advice on how to deal with rejection and failure.
Rejection and failure are a part of life, especially for entrepreneurs. It is important to learn how to deal with them effectively.
Here are a few tips:
- Don’t take it personally. Rejection and failure are often not a reflection of your worth or ability.
- Learn from your mistakes. Every mistake is an opportunity to learn and grow.
- Don’t give up. The most successful entrepreneurs are the ones who are able to persevere through rejection and failure.
Resources for finding mentors and business advisors
There are a number of resources available to help you find mentors and business advisors:
- Your local chamber of commerce: Many chambers of commerce offer mentorship programs and other resources for entrepreneurs.
- Networking events: Attending networking events is a great way to meet potential mentors and business advisors.
- Business incubators: Business incubators provide support and resources to early-stage businesses.
- Angel investor networks: Angel investor networks connect entrepreneurs with potential investors.
Common mistakes to avoid when starting a business
- Not having a clear business plan. A business plan will help you to define your goals, target market, and competitive advantage.
- Not doing enough market research. It is important to understand your target market and the competitive landscape before you launch your business.
- Not having enough financial resources. It is important to have enough money to cover your startup costs and operating expenses.
- Not marketing your business effectively. You need to reach out to potential customers and let them know about your business.
- Not managing your time effectively. As an entrepreneur, you will need to wear many hats. It is important to manage your time effectively so that you can focus on the most important tasks.
If you are an unplaced graduate who is feeling discouraged, don’t give up. There are many opportunities out there for you, even if you don’t have a traditional job. By being resourceful, creative, and persistent, you can become a successful self-made entrepreneur.
What are the top three you would consider when making the decision of whether to look for a job or start your own business? Let the community know in your comments below.