Is an MBA Degree Crucial for Becoming a Successful Entrepreneur?

With a number of people inclined towards business sector, entrepreneurship today has become a highly popular MBA specialisation. However, pursuing entrepreneurship degree alone does not guarantee you of roaring success.

Today, the academic circle is hotly debating about the importance of an MBA degree for a career in entrepreneurship. In sharp contrast, it is also a fact that lots of thriving entrepreneurs observably do not have MBAs. Almost each MBA programme cost approximately £50,000 a year, and it would not be wise as an entrepreneur to burden yourself with debt before you have even started. Most times, they think that money invested in MBAs could be better spent hiring office space or building a trial product.

Nevertheless, MBA students are more and more showing inclination towards entrepreneurship. According to a recent survey conducted by Graduate Management Admissions Council, almost 11 percent of MBA alumni having graduated between 1959 and 2013 currently run their own businesses. And, most top business schools have tailored MBA programmes to make sure they instil the required skills crucial to set off own company. “Schools now offer many more organised extra-curricular options, including entrepreneurship clubs, venture clubs and pitching competitions,” says Aled Owens of QS Top MBA.

MBA programmes attracting the top talent

London Business School offers a wide portfolio of eight different programmes meant to educate students about everything associated with the life-cycle of a start-up. The Centre for Entrepreneurship of Cass Business School provides their recent alumni access to a venture fund, which already has invested in seven start-ups, the biggest of which is Alva with annual turnover of £2m and employs 25 staff.

But the MBA programmes itself are not the sole reason to pursue the MBA courses. These courses have attracted the top talent of the world with an acceptance rate of less than 10 percent for top 10 programmes. Who knows if the fellow students become your future business partners or prove crucial as your future go-to network? Jim Hall, Executive Director, Entrepreneurship Centre at Said Business School, says, “this is where entrepreneurship happens.’

Some people even argue that these business schools should not be considered as substitute for the school of life, but the truth is that many business schools like Warwick bring in faculty with real-life entrepreneurial experience for delivering their knowledge to prospective entrepreneurs.

The early spark matters

However, Taavet Hinrikus, Skype’s first employee and co-founder of peer-to-peer money transfer business TransferWise, and Insead alumnus seems less convinced as he says, “People skills are critical when working in a start-up. Yet the classes at the typical school do not teach enough of them, instead setting team projects and tasks that merely allow natural interpersonal skills to flourish.”

Even faculty at business schools accept that no lecture or workshop could offer a student eureka moment. Nick Badman of Cass says, “You have to have a basic itch or spark that needs to be ignited.” But, if are inspired, business schools can enhance your chances of success by instilling key skills, such as time management, innovation and design, entrepreneurial finance, required to begin your own venture and equip you with the confidence to make use of better ideas.

Basically, MBA degrees are broad and teach you the fundamentals of everything from marketing, finance and law to taking risk. So, even if you are planning to work for a big business house, the MBA course will offer you up to two safe years. The worst outcome could be that you graduate with an MBA degree and obtain a good job.