One in five Indian college students has started a business: IIT survey
GUESSS India report by IIT Mandi reveals 22% of students run businesses as interest in government and corporate jobs drops across higher education
More than one in five Indian college students (22%) have started a business, reflecting a steady shift from traditional employment toward entrepreneurship.
According to the GUESSS India 2025 National Survey Report — led by the Indian Institute of Technology (IIT) Mandi in partnership with REVA University, Bengaluru — an additional 43% of students plan to start a venture, matching the global average.
The findings come amid ongoing concerns about graduate employability and the availability of quality jobs. While the survey does not establish a direct causal link between job scarcity and entrepreneurial ambition, it highlights that startups are becoming an increasingly mainstream career choice.
The study surveyed 25,783 students across more than 1,200 higher-education institutions in 34 states and union territories between September and December 2025.
Government job preferences fall
Student career aspirations are steadily diversifying beyond conventional salaried roles. The share of students aiming to launch a business immediately after graduation rose to 16.2% in 2025, up from 14% in 2023. Over the same period, preference for government employment fell from 12.7% to 10.1%, while interest in working for large corporate enterprises dropped from 31.3% to 27.4%.
Whether this shift stems from limited corporate opportunities, an increased appetite for risk, or growing confidence in India’s startup ecosystem remains an open question.
Early commercial traction
Indian student ventures show notable early commercial activity. Among student founders, 35.5% report generating regular sales, slightly outstripping the global average of 33%.
The report also highlights a rapid pace of venture creation and repeat entrepreneurship:-
Accelerated launch pace: Nearly 31% of revenue-generating student startups were founded in 2025 alone, compared to 18% globally.
Serial founders: 41% of student entrepreneurs had previously closed a venture before launching a new one (versus 33% globally).
Multiple ventures: 42% operated two or more businesses simultaneously, substantially higher than the global baseline of 25%.
However, business ownership and regular sales do not automatically guarantee profitability, long-term survival, or significant job creation. While information technology, artificial intelligence, and digital services were the most popular areas of interest, only about 10% of active student businesses are currently digital — revealing a gap between students' intended sectors and their actual execution.
Can student startups drive job creation?
As student entrepreneurship grows, a central question emerges: can these ventures evolve into net job creators rather than simply serving as individual alternatives to corporate employment?
Early-stage companies can generate direct jobs while driving demand for suppliers, professional services, and local businesses. However, their ultimate economic impact depends on whether student founders can secure growth capital, acquire customers, and scale beyond campus boundaries.
The report identifies several key drivers and bottlenecks shaping this transition:
Network advantage: Students with entrepreneurs among their relatives, friends, classmates, or teachers were three times more likely to launch a venture.
Conversion hurdles: Among students currently developing a venture, only 10% have achieved a first sale, compared to 23% globally.
Gender disparity: Among students aspiring to become founders, 45% of women had successfully launched a business, compared to 53% of men.
Focus on first sales over business plans
To help students build sustainable enterprises, the report recommends that universities move beyond pitch competitions and instead measure actual venture creation — prioritizing prototypes, business registrations, and first sales.
"India’s students are as ambitious as any in the world, and those who start are building real businesses that already hire people," said Dr Puran Singh, Associate Professor at IIT Mandi’s School of Management and country delegate for GUESSS India.
Dr Singh and Prerak Sharma authored the report, which was officially launched on October 9, 2026, at ISBACON 2026 in Mohali.
As students reconsider traditional career paths, the ability to turn startup ambition into viable enterprises could become an increasingly important part of India’s jobs and economic growth agenda.
