Sridhar Vembu says business schools should shut down in India, focus on startups
Zoho founder Sridhar Vembu has called for business schools in India to be shut down, arguing that the country needs more startup incubators and entrepreneurs rather than another generation of management graduates. He believes India should focus on encouraging people to build businesses, experiment with ideas and learn through the process instead of relying on traditional business education. Vembu shared his views while responding to a post by Professor Chris Marquis of the University of Cambridge Judge Business School, who wrote, "I Teach at a Business School, It's Time to Shut Them Down". Agreeing with the professor, Vembu said he had held a similar opinion for two decades.
"I agree entirely and have been saying this for 2 decades. India would do well to close down business schools and focus on startup incubators. We need large scale startup formation and a lot of experimentation," he wrote.
His remarks have triggered a discussion on social media, with users debating whether India needs fewer MBA programmes or a stronger focus on entrepreneurship within existing institutions. One user argued that India already has enough MBA graduates but lacks people willing to start businesses from scratch. The user suggested replacing half of the country's business schools with startup incubators where aspiring entrepreneurs could learn by building businesses, making mistakes and trying again. A look at what Sridhar Vembu said on X. However, not everyone agreed with shutting down business schools. Another user argued that entrepreneurship does not have to compete with traditional management education. Instead, business schools could introduce a stronger focus on startups and entrepreneurship as specialisations, allowing students to benefit from existing business knowledge and infrastructure. Another criticism centred on the way MBA courses are taught in India. A user argued that many programmes focus on areas such as sales, recruitment and accounting, rather than teaching students how to build and run businesses. According to the user, this leaves graduates specialising in individual management functions instead of developing the ability to become entrepreneurs.
The scale of India's startup ecosystem offers some context to Vembu's argument. Starting a business is no longer limited to entrepreneurs in major technology hubs, with recognised startups now emerging from smaller cities and towns as well.
Data shared by the Department for Promotion of Industry and Internal Trade (DPIIT) shows that India has crossed 2.5 lakh recognised startups, with businesses spread across more than 770 districts. Together, these companies have created over 25.42 lakh jobs. Nearly 52 per cent of the recognised startups operate from outside metro cities, suggesting that entrepreneurial activity is reaching a wider pool of people.
Access to early-stage capital has also improved. More than 4,100 startups have received approval for funding worth over Rs 775 crore under the Startup India Seed Fund Scheme. The government has routed this support through 244 incubators across 32 states and Union Territories. Separately, the Fund of Funds for Startups has helped channel investments worth more than Rs 28,000 crore into nearly 1,500 companies through alternative investment funds.
However, Vembu's argument goes beyond the availability of funding. He has also raised concerns about how people will work as AI becomes more capable. In a recent post, he said a skilled individual using AI could potentially handle tasks that would earlier require a team of 10 people.
He clarified that this does not mean most computer-based workers will lose their jobs. Instead, he expects businesses and industries to reorganise how work is distributed. He also pointed out that companies which earlier could not afford software engineers or digital marketers may now be able to hire them. Vembu believes that working with AI will require people to communicate their goals clearly, divide complicated problems into smaller tasks and recognise when the technology is making mistakes. He described these as meta-level skills, which are also important for system architects.- EndsAlso Read | Sridhar Vembu says only humans with meta level skills will benefit from AIAlso Read | SaaSpocalypse may be over, TCS and Infosys prove it with AI revenueAlso Read | Deepinder Goyal says don't buy Temple if your basics are not in place
Ankita Garg is a tech journalist with more than 9 years of experience. She is always curious about new gadgets and loves writing about them. When not writing, you will find her painting or sketching.
