The word ‘entrepreneur’ springs to mind, names such as Bill Gates, Steve Jobs, Steve Ballmer-the indisputable, almost larger-than-life ambassadors of the tech industry and the business world at large. Those seeking to create an independent foothold in the start-up world, invariably find themselves flipping through detailed chronicles of their journey, dissecting key drivers for their resounding success. One curious insight that never fails to gather a lot of attention is the fact that they decided to forego their degrees to pursue entrepreneurial dreams. Bill Gates dropped out of Harvard while Ballmer left Stanford to join Microsoft and his fellow sophomore-Gates. Their achievements with their dramatic impact on the digital world have alluringly made their decision to drop out of college, a template in itself for young graduates eyeing their place in the start-up industry.
The choice to learn theoretical business lessons as opposed to gaining real-world practical experiences has evolved from being a flippant desire among MBA aspirants to a genuine option. In addition to the success stories of several high-profile individuals striking big with their business administration ideas, there are some other significant factors influencing students’ career choices. In order to delve deep into the aspirations of the modern-day business student, we should first focus on the meaning of ‘entrepreneurship’ with its myriad hues and interpretations as it stands today.
Who is an entrepreneur?
An entrepreneur is someone who is armed with absolute clarity on a business idea, has an insatiable appetite for risk and possesses the deep foresight to anticipate change in business conditions. But most importantly, he/she is someone with steadfast self-confidence, passion and tenacity to carve a direction for building a team and gathering resources. Perhaps, it was the innate quality of a very strong will power to invest countless hours in his project of interest that drove Mark Zuckerberg to establish Facebook and not really his decision to drop out of college.
Questions of MBA Aspirants:
So, what real value can an MBA degree provide to individuals set to establish a business venture of their own? Can it be the secret ingredient that answers some of the most common but pressing questions that businesses face on a daily basis?
For the biggest dilemma that MBA aspirants have to contend with is whether pursuing an MBA program really worth the investment of time and money that it demands. Most MBA aspirants are individuals who have acquired considerable professional experience and seek an MBA degree to make a career-pivot or to learn the ropes of starting their own company. Therefore, they are accustomed to earning a comfortable pay which can be directly linked to their individual performance. With a relatively higher fee-structure (especially for premier b-schools) and an even bigger investment of time, can the subject-expertise of an MBA program deliver innovative business tools that in turn, offer creativity, efficiency and profitability? An MBA degree from one of the premier B-schools such as Harvard Business School or Wharton, definitely results in attractive compensation packages-latest data indicates average salary for 2016 graduates to be $126K per year. Is the opportunity cost of passing up such a lucrative offer coupled with the investment of 2 years into the program, a worthwhile risk?
How can MBA programs be relevant?
Some experts including academics lament that the way current MBA programs are structured does not allow for creative and critical business decision-making for situations prevailing upon a start-up. They opine that it is too focused on traditional approaches to problem-solving and places undue importance to research. Owning a business requires not just managing or controlling available resources but also being calculative enough to account for assumptions that may not be clearly visible at the beginning. MBA programs need to be tad more relevant to cater to the demands of entrepreneurship as it makes powerful strides in a global, highly connected world.
MBA programs need to be ready learning grounds for cultivating specialized skill-sets that foster decisions on, say, the price level at which the target customer would be willing to make a purchase or demand estimation or help segment the consumer market and several other critical drivers. Furthermore, since such programs are designed to create robust business knowledge, they should be modeled to be cognizant of the tangible value that research can provide to businesses. The curriculum should support consistent collaboration between students, managers and entrepreneurs through various activities and initiatives that expose business students to real-world challenges and induce them to think like a business person.
Beyond the glorious stories of Richard Branson, Gates and Steve Jobs, making it big without the necessary academic tags, there are several dazzling accounts of those who have been able to chase their entrepreneurship dreams, primarily due to the knowledge and expertise they gained at b-school. Take for example, the incredible story of Tot Squad and its founder-Jennifer Beall, an alumnus of Kellogg School of Management, who identified an unserved consumer need, of cleaning car-seats and other such infant gear products, while at b-school to eventually win the business-plan competition along with the Student of the Year Award in Entrepreneurship. Today, her venture is a flourishing proof of transferring classroom learning to tap into a niche consumer need and turn it into a profitable business.
Why Get An MBA?
Operational Efficiency
Despite its high-initial investment in terms of tuition fees, accommodation, books and travel expenses, not to forget the additional burden that education loans exert, an MBA program is really the more sensible investment option as opposed to learning business administration fundamentals-on the job. Spending 5-6 years at a business venture, learning about the challenges, adjusting decisions and actions as per the outcomes proves to be a far more tedious proposition as compared to building strong principles on business strategy and operations.
Knowledge is power
Pursuing an MBA program, opens learning avenues to multiple disciplines, subjects and programs. With strong theoretical and practical lessons (through case studies, seminars and workshops) in the areas of Finance, Accounting, Strategy, Marketing, students are equipped with extremely valuable know-how that prepares them to not just understand actions of other stakeholders but also react to challenge in different departments with a greater depth. In addition, b-schools offer wide access to mentors and knowledge resources that serve as great feedback barometers and help in course correction.
Skill-Building
The course structures with diverse set of subjects and programs provide ample opportunity to students to cultivate, hone and improve critical skills such as time management, team work, communication and leadership that would keep them in good stead over other business leaders who would have to think on their toes much more. Co-op programs and internships lead to great skills augmentation as students learn to react to actual business tasks in a team setting and contribute to shared goals.
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Availing funding is easier
Most b-schools today have integrated incubator and accelerator programs that serve as good platforms for students to pitch their business idea, plan on gathering necessary resources and build a team. And everything said and done, the credentials of a good b-school on your background provides the added impetus to reach out to VC investors with much more confidence as they perceive you to be relatively more competent, trust-worthy and responsible.
Large Professional Network
In addition to expert mentors in terms of your professors and career coaches, being part of an MBA program, exposes you to achievers from diverse professional fields. Initiatives such as entrepreneurship-focused career-treks, international career trips, seminars, conferences organized by business-focused professional associations as well as various events and activities planned by investment banking, venture capital- centered student-clubs, you really are spoilt for choice. Don’t forget to reach out to your circle of alums who have established a footing as entrepreneurs.
In a nutshell, the merits of pursuing an MBA program far outweigh the investment costs that need to be incurred initially. The capabilities in terms of knowledge, skills and an expanding network of connections translate to great business value, that in turn, results in enduring impact on business goals.