Market slowdown pushes students toward small companies, startups

Mysuru: In a marked shift from previous years, small companies and startups are receiving increasingly encouraging responses from students of leading city colleges during ongoing campus placements.Earlier, such firms largely focused on rural and Tier-II institutions, as students from urban campuses were hesitant to attend interviews or accept offers. However, the ongoing market slowdown has significantly altered this trend, prompting students to widen their employment choices.
Recruiters working for these small-and medium-sized enterprises and startups noted that both attendance and offer acceptance rates have improved compared to earlier placement drives. Industry observers attributed the change to cautious hiring patterns adopted by large corporations, particularly the absence of mass recruitment drives and limited entry-level openings.According to several training and placement officers who spoke to TOI, the 2025–2026 campus placement season is currently in full swing. "This year, there is a visible change in students' approach. With fewer opportunities in major companies, many are opting for smaller firms that offer strong project exposure," they said.They further explained that several small companies and start-ups are executing innovative projects for Central Public Sector Enterprises (CPSEs). These firms initially recruit students as interns and later absorb them into full-time roles after the stipulated training period. While the average cost to company (CTC) offered by such firms is typically in the range of Rs 4 lakh per annum, students are increasingly valuing practical exposure over salary packages."Companies that earlier visited Tier-II and rural colleges are now actively recruiting from urban centres such as Bengaluru and Mysuru," placement officers pointed out.A recruitment officer from a Bengaluru-based start-up said, "We never visited Bengaluru or Mysuru colleges before. This year, however, we have found sufficient candidates locally for our defence-related projects."Confirming the trend, Shivashankar B, chief executive of SJCE-STEP, the Start-up Technology Business Incubation Centre at JSS Technical Institutions campus, Mysuru, said the primary reason is the prevailing job crunch. "Corporate skill requirements have evolved. Today, securing a job and continuously upgrading skills matters more than just the initial offer," he said.