By Vivianne Wright
According to the GMAC, each year a mere 5% of the MBA class reports that their intention is to pursue an entrepreneurial venture upon completing the MBA program. To me, this number is astonishingly low compared to the enormous potential such courses have in developing entrepreneurial skills.
By definition, the MBA is a hybrid degree which fuses theoretical, academic and practical, on the site, learning. As a retaliation to criticism regarding that MBA students were taught inside the protective dome of an university, the programs have become increasingly practical, summing multiple hours of outside the classroom experience, which on top of being important for candidates seeking a corporate position, also enables entrepreneurs to benchmark their ideas within relevant markets.
The MBA is also an excellent opportunity for entrepreneurs to build on their management skills. We all know that the entrepreneurial mindset does not always comes together with an executional drive – in other words, entrepreneurs, while amazing at starting new ideas from scratch, oftentimes “suck” at managing the company once it reaches a particular size. The MBA can be the perfect finishing school for an entrepreneur, doting him/her with the discipline to manage employees and make strategic decisions regarding the company’s growth. Additionally, the MBA can actually be a great place to meet a future CEO or CFO for your envisioned company.
According to the GMAC survey, over 90% of the entrepreneurs who attended an MBA found their graduate management education to be key to growing their businesses, and 91% said the skills they acquired in the MBA have helped them lead the company they started. Also, 44% of the entrepreneurs who completed an MBA started their business while still on campus, which demonstrates the clear link between the MBA and entrepreneurship efforts. Therefore, for all those out their hoping to become the next big thing, the MBA may just as well be the way to get there.
However, not all MBAs are made alike. It would be wise for an entrepreneur to choose a Business School that allows him/her to leverage their efforts the most. While most programs have entrepreneurship tracks, some MBAs breathe it. The most obvious choice for some may be the Babson MBA – a program that has positioned itself as almost 100% entrepreneurship focused. But there are other schools where you get the chance of mingling among non-entrepreneurs, which may as well help expand your network whilst diving into the entrepreneurial environment. Notably, MIT Sloan School of Management, Berkeley Haas and Stanford are the most sought out options for entrepreneurs in the U.S. In Europe, INSEAD is by far the best bet.
The way to choose which program works best for your entrepreneurship goals depends on several factors, so you can count on MBA House consultants to help you make the right choice. One thing is guaranteed – the MBA will definitely help your business grow. Of the entrepreneurs who attended business school, 41% declared they raised their revenues, 28% were able to make their companies go global and 27% were able to diversify into different businesses – now, just how sweet is that?
