Many ambitious business graduates aspire to eventually lead their own companies. While most MBA holders secure well-paying and fulfilling jobs, a small percentage, particularly those from the best MBA colleges in Kolkata placement-wise, venture into entrepreneurship. Entrepreneurship is becoming more popular among MBA students, thanks to the burgeoning interest in launching startups, fueled in part by a positive economic landscape.
This, however, sparks a heated debate about whether an MBA can make a person a better entrepreneur. Also, can earning an MBA improve one's probability of becoming a successful business person?
To delve into this matter, let's explore the intricacies of this postgraduate program and evaluate its actual impact, if any, on shaping and fostering successful entrepreneurs.
Who is an Entrepreneur?
Planning to become a successful entrepreneur after getting an MBA? But do you really know who is an entrepreneur?
Although this term is not alien to today’s society, we often use business people alternatively in place of entrepreneurs. But is this usage accurate? Who truly qualifies as an entrepreneur?
Entrepreneurs "launch, own, and manage a startup that takes significant risks while reaping most of the profits. That said, they not just launch new businesses but also bring new ideas to the market."
While defining entrepreneurs, it is important to recognize subtle differences between an entrepreneur and a business person or owner. Although we often use both these terms interchangeably, they carry nuanced differences.
What sets entrepreneurs apart from businesspersons is the crucial element of "idea." Entrepreneurs lead startups with novel ideas or breakthroughs. On the other hand, a businessperson begins a venture as a new participant in an existing market, generally based on conventional beliefs or concepts. Also, it's worth emphasizing that an entrepreneur can eventually become a businessperson.
Does Getting an MBA Make Someone a Better Entrepreneur?
This is supposed to be an eternal question. While many management enthusiasts advocate for the benefits of an MBA, a sizable faction believes that such a degree is unnecessary. This latter group claims that academic credentials alone cannot instill the intrinsic attributes essential for entrepreneurship—an argument with undeniable merit.
An MBA degree, on the other hand, can be a beneficial guide, offering core knowledge in areas such as management and business strategy, particularly in specialized disciplines such as International Business or Entrepreneurship.
That being said, rather than debating the issue, let us examine both sides of the coin and investigate the tangible benefits and potential pitfalls of an MBA degree in making someone a better entrepreneur.
Benefits of an MBA for Entrepreneurs
We simply cannot ignore an MBA degree when thinking of entrepreneurship. So, let us see some positive ways in which this degree can help make better entrepreneurs.
Learn Leadership Skills
There are quite a few soft skills that are required to take a start-up off the ground, like communication, organization, teamwork, etc. Among these, leadership skills are particularly noteworthy and crucial.
Entrepreneurs are born with leadership traits, but it is their responsibility to guide the team to reach business objectives. As a result, it is critical for entrepreneurs to develop these talents in their staff members, and an MBA program is an ideal path for developing such leadership abilities.
Learn Business Development
Top MBA schools teach their students the fundamentals of starting and scaling a business. Starting a firm with a few employees is very different from running a business with 100 employees, earning revenue, and so on. An MBA program could impart to you the expertise you need to take your company from inception to IPO.
You'll study finance, marketing strategy, human resource management, operations management, and other areas required to successfully create and run a business by learning how to tackle difficult decisions, assess situations, and so on.
Scale Your Business
As we already stated above, an MBA programme helps in imparting knowledge in scaling businesses. For instance, an MBA in international business or entrepreneurship does not just teach students the basics of starting a business, but also running it successfully to scale it. With the hard and soft skills, one learns in an MBA programme, one can take their business to new heights.
Learn To Churn Ideas
One characteristic that distinguishes entrepreneurs from the herd is their ability to generate ideas and innovations. While intrinsic creativity is important, external factors and drive can help anyone become an innovator. MBA programs, with their diverse student body, provide an environment suited to seeing the world through new eyes. Furthermore, exposure to business basics, meetings with industry experts, and participation in internships within MBA programs can work as catalysts, inspiring students to churn out new business ideas.
Pitfalls of an MBA for Entrepreneurs
An MBA is a highly sought-after programme, but it is not devoid of pitfalls, especially when you are planning to be an entrepreneur rather than working in a company.
Time and Cost Consuming
MBAs are typically expensive. In other words, pursuing this course necessitates a large financial and time investment. As a result, entrepreneurs who want to start their own businesses frequently see an MBA degree as a liability, since they can use the money and time they spend on the programme to establish and grow their businesses.
Dependency on Networks
On the one hand, while networking is considered a benefit for MBA students, it may also be a hurdle for aspiring entrepreneurs. Depending only on an MBA network could reduce an entrepreneur's exposure to varied perspectives and networks outside of academia. It should be emphasized that successful entrepreneurship frequently necessitates a diverse network that reaches beyond traditional commercial circles.
Outdated Curriculum
Since an MBA course is offered by colleges and universities affiliated with the UGC, the course curriculum is not updated every year unless told otherwise by the affiliating authority. However, the business landscape changes at a faster rate. As a result, the syllabus may fall behind on current trends and technologies. That said, entrepreneurs must stay on top of industry trends, and an MBA school, therefore, may not always deliver the most up-to-date information.
Risk Aversion
You can't be an entrepreneur unless you're willing to take risks. Although an MBA program's organized curriculum teaches students about risk analysis and management, it may be ineffective in instilling the understanding of taking calculated risks and accepting ambiguity. This might make it difficult for a young entrepreneur to negotiate the uncertainties of starting and running a business.
Less Focus on Practical Knowledge
MBA programs often involve theoretical teachings, simulation projects, and case studies. Although students can enroll in internship programs, these do not provide enough practical experiences. On the other hand, budding entrepreneurs want more exposure to real-life scenarios in order to prepare for uncertainty. As a result, there may be a disconnect between academic learning and practical application.
Entrepreneur Skill Development
Last but not least, an MBA program cannot teach the skills required to become an entrepreneur. Although some soft skills can be learned via books, others, such as creativity, resilience, and adaptability, cannot be taught in books but must be learned via hands-on experiences.
Entrepreneurship frequently entails learning by doing, and an MBA may not adequately address the practical issues that entrepreneurs face.
The Bottom Line: Can MBA Bridge the Gap Between a College Grad and an Entrepreneur?
So, can an MBA degree bridge the gap between a college grad and an entrepreneur? The answer cannot be given as a straight YES or NO. While an MBA can provide useful insights into essential entrepreneurship skills, it can also limit certain prospects, such as acquiring broad industry exposure or real-world expertise.
Therefore, we leave the answer to our readers. It is up to them to decide whether an MBA can help shape their goal of becoming an entrepreneur, or if they can achieve it without any formal training.
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