Why should entrepreneurs bother to pursue an MBA? A mainstream misconception dictates that MBAs – or degrees for that matter – are for potential employees. In 2020, Elon Musk “shocked” the world when he criticized MBA graduates for polluting a company’s creative-thinking abilities. Similar comments inspired many youngsters to forgo their dreams to become college graduates.
Yes, many rich people in the world – Gates or Zuckerberg, for example – don’t have fancy educational qualifications. However, experts estimate that 40% of Fortune 500 CEOs have an MBA on their resumes. So, we recommend people willing to become self-employed shouldn’t disregard the importance of an MBA. Here are some of its benefits:
How do MBA degrees benefit entrepreneurs?
1) Take necessary courses
Students taking MBA classes can choose from several applied business courses. Moreover, distance learning facilities enable you to study MBA with a concentration in entrepreneurship. These e-study options offer flexibility and convenience, especially to people doing full-time jobs. Now, you should pursue an MBA online management program to deepen your knowledge in finance, accounting, and human resources. Then you can start your company with sharpened leadership capabilities as well.
2) Become a leader
Not every business owner’s a fantastic manager. That’s why we have 90% of startups failing merely after a year. Youngsters with brilliant ideas often fail to execute them well because they don’t know how to motivate their employees or express their concerns. So, pursuing an MBA helps you “lead” the people working under you. For instance, you’ll learn which leadership model seems more suitable for your organization. That’s why MBA graduates are some of the best leaders out there.
3) Create new jobs
In the past, MBA degrees helped people get the jobs of their dreams. Today, MBA graduates create the jobs of their dreams in their companies. Experts estimate that 85% of 2030’s jobs have not been invented yet. So, who do you think will generate these future jobs? Our business owners will produce employment opportunities for the younger generation. We also have companies such as Google and Facebook promoting “intrapreneurs” by boosting innovation within these huge organizations.
4) Become financially literate
Studies show that only 40% of business owners consider themselves financially well-informed. Thus, earning an MBA degree teaches you financial literacy, making you well-versed in budgeting and product marketing. It instructs you when, where, and how much to invest to boost the startup’s profitability. It’s observed that MBA graduates tend to make better financial decisions, thereby being flourishing entrepreneurs. For instance, their education shows them how to read financial reports.
5) Expand your perspective
Earning a master’s degree in business administration, specifically an online MBA in sustainability, makes your worldview more expansive, enabling you to tap into global markets. You become more well-informed about trends affecting the global industry and the skills necessary to make business ties internationally. Also, MBA graduates often interact with students from different backgrounds. It makes them learn why today’s markets rely upon diversity for enhanced profitability. Thus, you may even become more tolerant.
6) Learn to communicate
Some business owners experience problems while attempting to communicate with their colleagues and subordinates. From your investors to your customers – everyone expects CEOs to explain what the company’s services and products are all about. An MBA education helps you express your plans and articulate them effectively. It can enhance your productivity and improve your skills as a manager. A student pursuing an MBA online can drive their energy and resources for the company’s success.
7) Learn risk management
Entrepreneurs require some business education to learn the skills a modern-day CEO must know. So, an MBA degree makes you more tech-savvy and better at mitigating threats. An entrepreneur who studied business administration properly can make better data-driven decisions than traditional business owners. So, you can learn about the tech tools used in risk management. A tech-savvy entrepreneur then effectively increases the company’s ROI, and the company flourishes.
8) Make decent connections
Your education doesn’t happen in solitude (even when it’s online) since your share the classroom in MBA courses with several future business owners. So, budding entrepreneurs can leverage these connections later to expand their companies. Today, MBA programs are project-based and encourage students to collaborate more often. That’s how you develop long-term associations that seem very helpful for your future endeavors. Who knows if you discover your company’s cofounder there too!
9) Earn the badge
We’ve explained how many Fortune 500 CEOs have earned an MBA from reputable institutes. Now, you should imitate them and earn this badge of honor. Even though some entrepreneurs are against an MBA degree, investors and customers today still trust a company founded by an MBA graduate. They consider such startups as legitimate since the founder’s attained the education required to be a CEO. So, earning an MBA degree enhances your reputation, thereby bringing some early funding.
Whether you’re planning to search for jobs or establish a self-owned business, earning an MBA can help you become successful in your post-academic pursuits. Studies indicate that 84% of companies founded by MBA graduates were operational even after three years. Nobody’s asking you to get an MBA as one of the requirements of starting a business.
But this degree helps you scale your business and teaches the important stuff about running a company in 2021 and the years to come. Also, MBA graduates have immaculate leadership and communication capabilities. This degree sharpens your soft skills, widens your worldview, and enables you to network effectively in the industry. Hence, we recommend entrepreneurs acquire an MBA to become better at entrepreneurship.