Why an MBA is Not the Best Bet for Future Entrepreneurs
Going to business school to become an entrepreneur is often seen as the worst career decision one can make. I know this from personal experience and observations of aspiring entrepreneurs who have similarly lost this bet. In this article, we will explore why acquiring an MBA might not be the best path for future entrepreneurs.
An MBA Hinders Entrepreneurial Thinking
The core issue with an MBA for aspiring entrepreneurs lies in the fact that it promotes a passive approach rather than active action. You start focusing on obtaining the MBA degree rather than honing your entrepreneurial skills and launching a company. This misplaced emphasis can lead you astray from your ultimate goal.
Myths About the ‘Best Way’ to Start a Company
There are several common myths about the supposed benefits of an MBA for starting a company. Some believe that an MBA is the best way to access venture capital (VCs), find co-founders, and free up time to work on their idea. However, these arguments are flawed.
Access to VC: Even without an MBA, you can meet VCs at conferences, networking events, or even through existing relationships. The MBA card doesn’t guarantee success in pitching your idea. In fact, many VCs might be more impressed by a prototype, actual sales, or a functional website—essentials that you can build on your own.
Finding Co-Founders: You can recruit co-founders from Meetups, industry events, or your current workplace. The idea that an MBA is necessary for finding co-founders is a myth. Your network and personal connections are more valuable than any academic credential.
Time Management: Many entrepreneurs work nights and weekends to develop their ideas, just as they would after obtaining an MBA. The extra time you might get due to classes in an MBA program is often minimal compared to the drive and determination required to start a company.
Real Entrepreneurs Beat the Odds Without an MBA
What we see in the stark reality of entrepreneurship is that many successful entrepreneurs never obtained an MBA. They managed to start and run companies successfully despite or because of their lack of formal business education. The reason? They approach entrepreneurship with a mindset already rooted in creativity, resilience, and problem-solving.
The Value of Entrepreneurship Over an MBA
Even the so-called benefits of an MBA can be achieved through alternative means. For instance, the knowledge and skills gained from an MBA can be acquired for free through online resources. Additionally, branding yourself with an elite credential is unnecessary when your customers, co-founders, and investors care about the product, your trustworthiness, and your ability to sell to real customers.
CUSTOMER: Your potential customers only care about your product, not your educational background. CO-FUNDER: Your potential co-founders and employees will trust you based on your character and ability, not your degree. INVESTORS: Investors care about your customer base and revenue, not your academic achievements.
Elite Incubators Over Elite MBA Programs
The startup world now values elite incubators over prestigious business schools. To get into one of these incubators, you need to prove that you have taken initial steps to form a business, such as building a prototype, securing sales, and establishing a website. This is a far cry from the simple act of writing an essay and taking a math test to get into b-school.
INCUBATORS: Incubators like Y Combinator, Techstars, and others are the true benchmarks in the startup world. Enrolling in one signifies real commitment to entrepreneurship, not just the pursuit of an academic degree.
While some MBA programs do produce entrepreneurs, the success often lies in the entrepreneur within, not the knowledge imparted by the MBA. Your journey to entrepreneurship should be about action, not mere academic achievement.
In conclusion, pursuing an MBA might not be the best bet for future entrepreneurs. If you dream of becoming a real entrepreneur, focus on developing your entrepreneurial skills, building real-world connections, and taking action toward your goals. There's no need to wait for an MBA; you can achieve success on your own terms.