Zoho founder Sridhar Vembu believes India should focus on startup incubators instead of traditional business schools to encourage entrepreneurship and business creation.
Vembu shared his views while responding to a post by Professor Chris Marquis of the University of Cambridge Judge Business School, titled “I Teach at a Business School, It’s Time to Shut Them Down”. Agreeing with the argument, Vembu said he had held a similar view for nearly 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 comments have sparked a debate about the role of MBA education in India’s growing startup ecosystem. Some social media users supported his argument, saying the country has enough management graduates but needs more people willing to build businesses from the ground up. They suggested converting some business schools into incubators where aspiring founders could develop ideas, learn from failures and gain practical experience.
Others argued that business schools do not need to shut down. Instead, they could strengthen their entrepreneurship programs and give students more opportunities to work on startup ideas. Critics also questioned whether conventional MBA courses provide enough training in business creation, pointing out that many programs focus on specific management functions rather than developing entrepreneurial skills.
India’s growing startup base provides context for the debate. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the country has crossed 2.5 lakh recognized startups across more than 770 districts. These businesses have created over 25.42 lakh jobs. Nearly 52% of recognized startups operate outside major metropolitan cities.
Vembu’s argument also connects with his views on how artificial intelligence could change employment. He recently said that individuals with strong skills and the ability to use AI effectively could handle work that previously required larger teams. He expects AI to change how companies organize work rather than simply eliminate jobs. He has emphasized the importance of clear communication, breaking complex problems into smaller tasks and identifying errors in AI-generated outputs.
His comments raise a broader question about whether India’s education system should focus more on preparing people to build businesses in an economy increasingly shaped by startups and AI.
