One of the most common debates in the world of business centers is around whether it’s worthwhile to invest in earning an MBA or not. While there are compelling arguments on either side, one area where nearly everyone agrees is the value of an MBA for entrepreneurs. The prevailing wisdom is that anyone who wishes to start their own business will benefit from the education and experience that an MBA program offers.
Need proof? A growing number of MBA programs are actually adding entrepreneurship concentrations, and including entrepreneurial principles as a cornerstone of their curriculum.
The reasons for this emphasis are varied, but most experts recommend earning an MBA for several key benefits.
1. MBA Programs Offer Support for Entrepreneurs
Ask anyone who has earned an MBA what the greatest takeaway from their program was, and many will tell you that it was the network they built during the program. Even those who earned an online master’s degree in business report that the contacts they made, including fellow students, instructors, lecturers, and internship colleagues, are invaluable and one of the best parts of the experience. The network that you build while earning your MBA can help you start and expand your business, by offering insights, introductions, and other support when you need it most.
In addition, many MBA programs include business incubator and other support systems for alumni. Entrepreneurs have access to mentors and other experts who can provide advice based on individual goals, access to additional funding, and other resources that can help improve the chances of success for a new entrepreneur.
2. An MBA Provides a Greater Understanding of Business Strategy
A successful business requires more than just a great idea. Entrepreneurs must have a strategy for operations, and for growth beyond the initial idea and launch. With the education and training that an MBA provides, entrepreneurs have a better understanding of strategy and the ability to put together all of the pieces of their idea for a business — and a leg up on the competition.
3. An MBA Provides Increased Business Knowledge and Understanding
Running a business requires the ability to identify, assess, and resolve challenges and problems on an ongoing basis. Without those skills, it’s likely that the company could crumble at the first sign of trouble, or at the very least, be in a constant state of chaos. With an MBA, you can the experience and skill set necessary to handle almost any situation. Not to mention, the knowledge and understanding gained through advanced business education allows you to respond to changes and opportunities agilely and quickly. In short, an MBA provides the confidence necessary for entrepreneurs to take risks and grow their businesses, while still operating on a solid foundation.
4. An MBA Gives You Added Credibility
When investors and other sources of financing look at a business, they want to know that the people in charge know what they are doing and aren’t going to make decisions that lead to big losses. Having an MBA provides a higher degree of credibility and assurance when you seek financing for your company or partnerships with other businesses. That added credibility can save time while also opening doors that may have otherwise remained closed.
5. MBA Degree Programs Provide Hands-On Experience
Finally, there is little that can equal the hand-on experience you gain from an MBA program. While some argue that prospective entrepreneurs should “just do it” and start their first business — and learn from their mistakes — others say there is some value in getting some hands-on experience in a more controlled environment first. Not having to learn everything the hard way can help an entrepreneur avoid the loss and discouragement that can come from jumping in with both feet before being truly ready. With experience comes knowledge, and there is no such thing as an entrepreneur that has too much knowledge.
There’s no doubt that earning an MBA requires an investment of time and money, and it can be challenging to manage school with other responsibilities. However, with all of the benefits that come from earning the degree, that investment is well worthwhile, especially when you want to launch your own successful business.
