Entrepreneurship is one of the few career options that requires no formal degree. Entrepreneurs today come from various educational backgrounds, such as science, liberal arts, finance, and even college dropouts.
The crux of an entrepreneurial enterprise is the idea behind it and the value it can bring to the respective industry. That being said, some skills are required to run a business, even one as unique as a start-up, which is why there is a lot of discussion over whether entrepreneurs should opt for an MBA.
If you are an entrepreneur pondering whether you need an MBA, the short answer is no, you don’t. However, if you were to ask whether an MBA will benefit you as an entrepreneur, the answer is yes.
In this article, we will discuss the importance of an MBA for entrepreneurs and tell you six compelling reasons to opt for it.
Importance Of An MBA
An MBA is hands-down the most diverse qualification out there today. Walk into any MBA class, and you will find people of every age with various educational and professional backgrounds. From scientists to artists, anybody who wishes to add an edge to their professional profile and learn the ropes of handling a business opts for an MBA degree.
With an MBA, you learn about business planning, strategic marketing, analyzing markets and customer trends, and many other things that are extremely helpful for running a business.
Plus, with distance learning becoming popular, you can get an online accredited MBA without putting your business venture on hold. Hence, an MBA is a great option for entrepreneurs.
Reasons Why Entrepreneurs Should Get An MBA
An MBA can help entrepreneurs in making their business a success by giving them an edge over competitors. Let’s discuss this further.
1. Learn how to Run a Business
There may not be a rule book for running a business, but there are most certainly guidelines that can help. An MBA can acquaint you with those guidelines and help you learn the ins and outs of running a business.
An MBA teaches you the basics of all business functions, from strategic decision-making to efficient operations management. This includes finance, HR, marketing, sales, and all other elements that make up an organization.
With this knowledge, you can effectively manage the teams under you, even if you’re from a non-business background.
2. Earn a Valuable Title
Running a business requires many things, such as competency, leadership, and business acumen. However, it also requires the right profile to create an impression on investors and other stakeholders.
An MBA is a post-graduate degree, and people tend to respect titles in the business world. If the same proposal were to come from two different entrepreneurs, one with a degree in linguistics and the other with an MBA, the latter would almost always be given more weightage.
Hence, if you want your profile to create a strong impression, an MBA will help you do just that.
3. Become a Strong Leader
Leadership skills are essential to achieving success in the business world. We see many competent men and women hit a plateau of growth within their industries and wonder why they never reached the top.
The answer is simple. These people lack leadership skills. You may be the best person in the world for your job, but until and unless you know how to manage people and lead them in a way that makes them want to come in to work every morning, there’s only so far you can go.
MBA courses extensively focus on leadership skills and teach students to lead gracefully and efficiently.
4. Talk the Talk
For start-ups, survival heavily depends on funding in the first few years. However, getting that funding is as difficult as depicted on Shark Tank, if not more.
Investors are extremely money-minded individuals and need to know that there is a high chance of profitability on their investment before they agree to anything. For people from non-business backgrounds, the focus of a pitch is often on the merits of the product or service rather than the numbers.
Unfortunately, numbers are usually the only language that investors understand. With an MBA, you can learn how to sell yourself and your business to potential investors so that your business seems like a viable and profitable option.
5. Understand the Ecosystem
Sometimes wonderful business ideas fail. The most common reason for this is the business owner’s inability to understand and analyze the market. You can have the perfect business plan and the best product in the world; however, there is little chance of success unless you know the market and the customers.
An MBA teaches important concepts regarding markets and industries, using which you can coherently bridge the gap between your product and your customers. Hence, the degree really can be what you need to polish your entrepreneurial skills and become a successful businessperson.
6. Build a Network
One of the lesser-known benefits of opting for an MBA as an entrepreneur is that the degree can help you build or expand your professional network. When you enroll in an MBA program, you join a class with dozens of other students from different backgrounds.
Then, you are taught by leading industry professionals who have established themselves in their fields. Even further, you must participate in activities and lectures where the country’s most successful professionals come and speak to you about their experience.
All these are wonderful opportunities to build a strong professional network that you can rely on in the years to come.
From your classmates and teachers to everyone you meet through your MBA, each can be a valuable ally as you navigate the unfamiliar waters of entrepreneurship.
There are many ways in which an MBA can benefit you as an entrepreneur. It helps you learn new concepts and refine your skillset to excel in business.
The reasons listed above are only the tip of the iceberg: once you start your MBA, you will realize just how much value the degree will bring to your life.