The degree of an MBA can act as a turnaround in the lives of budding entrepreneurs. Business management, finance, marketing, and operations are all part of a wholesome education to start and build up a successful business. Even though many successful entrepreneurs made it without any formal education, an MBA would add great value and lay a proper foundation, increasing the potential for success.
Value of MBA
While an MBA does convey academic knowledge, it builds a network of peers, mentors, and industry leaders, which is very useful in the journey of entrepreneurship. According to Graduate Management Admission Council, 89% of MBA graduates feel that their degree increased their earning potential and equipped them with skills that would help them progress further in their careers. GMAC 2020 Alumni Perspectives Survey. https://www.gmac.com/-/media/files/gmac/research/alumni-research/2020-gmac-alumni-perspectives-survey-report.pdf.
Providing Basic Competencies
An entrepreneurial venture requires a vast range of skills, all of which an MBA program will help the student master: strategic thinking, financial management, marketing strategies, and leadership. This is how one can develop a business plan, raise capital, and handle a team. According to the Financial Times, 64% of graduates are more confident in their business abilities post-MBA. Source: Financial Times, FT MBA Rankings 2020.
Networking Opportunities
Perhaps one of the real strong suits of an MBA is the networking opportunity it offers. Many business schools are really well-linked to industry leaders, venture capitalists, and successful entrepreneurs who can mentor, partner, or even fund your next great idea. As noted in the paper from the National Bureau of Economic Research, the better the network, the more successful the startup.
A significant portion of the resources available to access for most MBA’s are incubators, accelerators, and entrepreneurship centers. These provide the entrepreneur with resources, from mentorship and office space to funding. For instance, the Wharton School at the University of Pennsylvania’s Entrepreneurship Center enables students with the “tools and support” needed to get their ventures off the ground. See Wharton Entrepreneurship — https://entrepreneurship.wharton.upenn.edu/.
Financial Knowledge
Every entrepreneur must understand financial literacy. An MBA course goes to the core of financial management, accounting, and investment strategies. These subjects are very important in the development of a business plan that works, cash flow management, and raising finance from potential investors. In the Association of MBAs survey, 76% of the responding MBA graduates said that the courses they did in finance were highly valued for their entrepreneurial activities.
Case Studies and Real-World Experience
MBA programs are primarily case studies of the real business world. The case studies reflect what has been learned from the struggles and success stories of various firms, hence providing opportunities for students to learn through others’ experiences. Besides, most programs include internships and consulting projects that provide hands-on experience in the business world. This experience is very vital in building an entrepreneur.
Success Stories
Many of the entrepreneurs today have credited their MBA education as being instrumental in achieving their goals. One such case is Elon Musk, the CEO of Tesla and SpaceX, who did his MBA at Wharton School from the University of Pennsylvania. He often says his education gave him the knowledge and skills to build his companies.
Conclusion
An MBA can turn out to be an extremely helpful tool in the arsenal of aspiring entrepreneurs. This kind of education gives a student key competencies, provides numerous valuable networks, opens access to resources, brings in the financial knowledge element, and adds real-world experience. While this is certainly not the only way to achieve entrepreneurial success, it does help to shift the odds a bit. Proper education combined with adequate support and strong determination will help MBA graduates realize their entrepreneurial dreams.
The journey to entrepreneurship can be complex, but the base can be laid and supported with an MBA. It can be said that when one invests in an MBA, one is doing so for his future as an entrepreneur. If you are looking to kickstart your business or take it to the next level, an MBA will equip you with the tools and confidence needed to move forward.
