Hello guys,
I have talked to many entrepreneurs this year, had a casual chat as well as formal meetings and mail conversations. Some of them are highly educated with MBA degrees from world reknowed universities and some of them just have a graduation and in a few cases, not even a graduation. Of course, all of them were successful in their own paths.
Anyways, I had this question in my mind, almost always, that does an entrepreneur need an MBA degree and if he had one, how would it influence him in his career and how would he be different from others who dont have an MBA.
Thought of posing this question here to all the RODINHOODS. Hmmm, lets see….!!
Please do post your thoughts about this.
J Rohit Raj
Ya Sanjay,
Very true. Fire in the belly and knowledge in the field of work are the most basic things that make things work out.
I was just talking about HOW an MBA can help entrepreneurs, if they have one.
SANJAY DODRAJKA said:
Alok Rodinhood Kejriwal
No, I have strong views why MBAS’s SUCK at entrepreneurship.
This is based on purely meeting and working with at least 1000+ MBA’s (as Bankers, Clients, Colleagues, Friends)
– MBA’s have too much text book stuff in their heads that is impossible to vomit out – they have imbibed 70’s and 80’s Brick and Mortar best practices that has no relevance:
Eg – ask any fresh MBA and they will say you will have to spend to market a website coz thats HOW a product gets marketed. its one of the (in)famous P’s…
Hahahaha – Ask Facebook/Twitter/Foursquare if they ever did so.
– MBA’s dont have start up knowledge – they have studied Case Studies of Fords and Macy’s and Nirmas…. not relevant if you are starting up a Ground Level Busines
– MBA’s are TYPICALLY CAREER PROFESSIONALS – they have a ‘career path’ in mind – ask them if they can LIVE THEIR LIFE as a FAILED entreprenueur (90% of entrepreneurs will be failures in their lives (measured by their own standards))
– MBA’s are too debt loaded – hence they are EXPENSIVE to hire or RENT – even if they dont take salaries, in their MINDS they are adding up the lost income
– MBA’s are RISK averse – they like to ‘measure and contain’ risk….thats MBAS bullshit. Risk is WIN or LOSE. No new age entrepreneur can measure risk like a tailor..
– MBA’s wont sweep floors, be a courier agent, make coffee for the receptionist – they have inflated ego’s
– Most importantly – MBA’s BENCHMARK themselves to folks who are NOT ENTREPRENEURS – they benchmark themselves to their peers who are career professionals. They are NOT ASPIRING to be an entrepreneur – rather they want to be the next CEO of Coke.
Anushka Shroff
For a lighter Vein
“I was born intelligent, but education Ruined me” 🙂
Cheers
J Rohit Raj
MBA s have too much of textbook knowledge….Yeah, true…While talking to some of my friends who are in B Schools or who have been to B schools, i get surprised, in fact shocked to know what they study……purely case studies and spend time working with and submitting assignments….I wonder if they get time to see and analyze a real problem and try to get a real working solution for it.
Vandana Parikh
An MBA qualificatn is to help a professional do his/her business better..whether that biz is growing potatoes or processing potatoes; its only a course to help u structure your thoughts along commercial aspects. An MBA qualification could never be the yardstick for turning entrepreneur.The latter relates to purely an individual’s capability to see an opportunity and have grit to take the plunge – this individual could b your shop floor worker or a pan ki dukan wala deciding to do his business in a different way. Problem with Indian MBAs is our academic structure which allows students to apply for this without work experience – the outcome is exactly what goes in; bookish knowledge and “we can teach u how to make ur millions, but dont ask us how to make ur first million”.
Vandana Parikh
Alok ‘Rodinhood’ Kejriwal said:
Vandana Parikh
Adding a longish article upon this subject. I hope you find it interesting:
Lokendra Tomar’s – What they don’t teach u at B Schools:
Top Indian business schools have it easy in admitting a bright, ambitious batch of students by virtue of a competitive admission process.
This, along with peer-stimulated learning, where everyone is eager to prove himself (or herself), sets the tone for a very healthy and competitive learning environment. However, this focus on being the best at all times is not helpful in the real world where teams take precedence over individuals, however bright they may be. This is a big adjustment for MBA graduates to make during their transition into the real world.
Business graduates also require meaningful lessons in recognising failure, accepting failure, and learning and recovering from failure. Highly motivated type-A personalities, which most business students are, have a difficult time dealing with failure. Peer pressure and visibility builds a “be correct at all costs” mentality that is difficult to change. In reality, top managerial leaders are often wrong and have the battle scars to prove it. What makes the difference is what they do about their failures going forward. This ability to bounce back is not taught at business schools.
There is a strong focus in business schools on management concepts/techniques, case studies, and quantitative analysis. However, not all business and people problems can be resolved by simply applying these frameworks. Business school graduates need another set of “tools” outside the confines of the business school “laboratory”. With experience, managers and leaders develop a strong sense of intuition or judgement, which is invaluable in making decisions. Perhaps a management technique will not tell you that a $2,500 car is possible but a leader’s vision will, as we have seen in the case of Tata Nano. Leadership skills, particularly as it relates to soft skills and the handling of people, get short treatment in business schools. Most MBA programmes do not have a much-needed focus on a very important characteristic of a successful leader — an understanding and analysis of human behaviour, how people interact in an organisation. This becomes more and more important as people go up the management ladder.
Another area in which business schools can do more to school their graduates lies in probing the limits of their own knowledge. A lot of time is spent teaching the students how to get the right answer. Not enough time is spent teaching them how to arrive at asking the right questions. There is no arguing the fact that Indian business schools are among the best in the world. But what will make their programmes truly well-rounded is teaching students skills they will need in order to make their way in the business world: leadership, probing the limits of their knowledge, detail-orientedness and execution; managing across nationalities; maintaining corporate ethics; and bouncing back from failure.
These are the skills that separate the high achievers from those who merely display high potential.
Koshy T
If we send 1000 young energetic healthy boys to the best cricket coaching establishment, will all of them become Sachin, if not qualify for national team if not Ranji? chances are most wont.
Are all the graduates from the medical schools the best doctors?
Are all the graduates from Engineering schools successful engineers (those who stay back in engineering:-))
Is it the problem with the schools. ?
It is in the nature of any profession that the formal qualification is only one of the ingredients. There are many more dimensions being successful in any profession.
Those who have it (and are lucky) will top it. The fact that they have formally qualified not necessarily subtract from them
This is the case with MBA also. MBA is not a qualification only for being and entrepreneur. It is just an education for being a manger. Some will go into systems, some to being finance professional, some will justbe PSU management.
Entrepreneurship is beyond that. Some will succeed without any qualification. Some in spite of their qualification. Just like some people become outstanding musicians without any formal training (take Mozart for example!)
Most doctors will treat patients. Some will set up successful hospitals
Most CAs will work as finance managers. Some will set up successful practices that span many countries
Most engineers will work as technicians Some will set up success full engineering companies
Most computer Science graduates will work as system professionals Some will set up successful IT companies
Many of them may also take an MBA to enhance their exposure to some established wisdom
Some talented people may set up any without any qualification also
More relevant point to discuss is what takes it to become a successful entrepreneur.
Koshy
pankaj khandelwal
my grandfather was an uneducated poor man….he became a rich man in a span of 20 years and established industries in 8 places in India ….he established offices in London and Paris in 1940s…..I hope this makes it amply clear that OK, MBA is no doubt good ,but in the end…..your career is all about you and your instincts +base knowledge.As a surgeon I can say for my profession that a degree has no value unless the young doctor has required experience in his practical work…degrees just tell you what to do ,how to do ,especially in emergency situations is your own decision ….So ,for me ,rather than the degree its the knowledge of work which is more important….
TMS.Shammie
To be an entrepreneur:
1. An Urge to have something of their own. 99% MBA’s are those who look to earn more than what they currently do. Not to learn how to create a business.
2. To take risks. Those who are involved in taking risks are those who want to build something of their own or those who have taken risks and learned from them.
3. To understand practicality of the situation and not the bookish theme. MBA’s usually go by the books, which i tend to hate. But every1 tends to do that.
4. To be able to create opportunities. MBA’s are usually more into establishing an already created opportunity.
5. Social Stigma, one of the main reason why the risk taking possibility is lesser for MBA’s is because they usually take loans and money from outside so that they can take up a job and get a safe life. They are too afraid to face the society if they fail to lead a safe lifestyle or atleast repay the money.
I myself would like to do an MBA from an IVY league business school, the only reasons to do an MBA for me would be:
-Experiencing the life abroad with some of the best thinkers
-Practical experience with summer interns with companies with an amazing working model
-Networking with those who could possibly become CEO’s or something (Man i want business for my business from these guys :D)
-The tag, he is intelligent enough to get into an IVY league college matters more to me then he’s an MBA from an IVY league college.
J Rohit Raj
When I have talked to a couple of highly educated entrepreneurs regarding their MBAs, they mainly stressed on 3 points that how they considered their degrees useful
1. They have got a lot of high-end contacts and CXO friends out of their respective B Schools and they could contact their friends and establishing business relations were easier.
2. They could get a well paid job inorder to save as much as possible and can comfortably take the initial funding from their own savings and venture out.
3. They viewd their degree as an insurance, taking that, if they, in any case, fail with their ventures, there would be always a safer side to get into a well paid job with their degree.
Hmm..ones own perspective. 😉
Sameer Malkani
An MBA is not necessary for an Entrepreneur. In fact the skills and tools acquired by an MBA can many a times limit an entrepreneurs vision, thought process and capacity.
Durga Das
Hi.. I believe every one of my failures to have given me a Masters, a MBA, a Phd. Nothing like failing to learning and growing… You know it is said that knowledge is not experience, but experience is knowledge -durga das
TMS.Shammie said:
Dhruv goyal
No i dont think that MBA is necessary for Entrepreneurship.
There are many who are successful without MBA desgree.
You can check the list at http://www.startupsdesk.blogspot.com
Rishav Rastogi
Usually Entrepreneurs Hire MBA’s… not the other way around. 🙂
Nayana Somaratna
I guess that the school of hard knocks is a far better teacher than the best business school in the world 🙂
Frankly, if you look back to your degrees (and I have two – one in medicine and the other in IT) – how much of their knowledge do you use in real life ?
As a doctor who worked in a surgical unit, I forgot almost everything about medicine and just developed my practical skills.
As a entrepreneur-programmer writing applications for mobile phones, I’ve forgotten almost everything I learned about IT.
And as a entrepreneur, isn’t it your ability to learn new things on the go (business stuff included) your greatest asset ?
Dhruv goyal
Hats off to you….Wanted a reason for not doing MBA…lollllllll…….
Alok ‘Rodinhood’ Kejriwal said:
Codwo
I am cross-posting my own reply from Quora here : https://grati.la/mbaornot
If an entrepreneur is feeling that he is lacking business side of things for which he requires an MBA, then there is something fundamentally wrong there.
Entrepreneurs always don’t know everything; they only know how to inspire
somebody to work on their idea and hire somebody who can complement missing skills.
Business schools can never teach how to run startups successfully because no one knows more about this subject other than business owner himself.
But I do understand the difficulties that you might face in evaluating financial info & modeling, planning strategy, marketing techniques, management theory. To acquire that knowledge, you can always read up forums like OCC and then contact people, build relationships, and build your mentors network.
The world is changing, there is much more to learn outside classrooms, and your first step is to watch this — Unlearn your MBA:
https://ecorner.stanford.edu/auth…. There are plenty of useful resources out there like this one https://www.adams-hall.com/arofin… )
Why do people need an MBA? Well, people need an MBA not to learn management theories, but to become part of elite networks of successful people (like Alumni net of IIM or Stanford) , so that they can get a chance and reason to hang out with guys with deep-pockets to get noticed. End of the day, An MBA is about leveraging the brand name (IIM or other) which can help you present your strengths & capabilities in three words “MBA from IIM”, the brand speaks for itself, and you can hangout with cool people, get good contacts and references.
This is enough to end up in getting a management job in corporation. But if you are an entrepreneur, An MBA might only help you connect to people easily, but you will still need to prove that your idea/business is worth talking about, If you don’t have business success stories to share, you will not be able to retain relationships with people. On the other hand, if you do the hustle to build something worth talking about, the network of good people (investors, potential talent, partners) will identify you.
Pankaj Kayathwal
Yes ….. he needs M (Money) and a BA (Bank Account) …….. anything else is all hum-bug !
Shiv Senthilvel
The way i see it, an MBA is useful if you go to a premier b-school as 20 years from when you finish most of the top guys (professionals) in the industry are your friends or seniors or guys you wasted evenings getting plastered with. In the end the best thing an iim can give you is your network. So in an ideal case someone with an mba should work 20 years and then startup something to leverage the best of both worlds. A fresh mba is a major threat to a young organization.
pankaj khandelwal
lol…..so its money here too….
Pankaj Kayathwal said:
Prajwal Sunny
Hei
I have the same question too
I am currently pursuing my PhD in Biology, but i want to be an euntrepreneur
But I am not sure if need to do a MBA
Lets wee if someone can throw some light on this
Praj
Ritu Rawat
Ah! lot of MBA bashing doing the rounds here!
but I’ll say its more about the people than the degree. Unfortunately a very small percentage of the crowd that is attracted to this degree actually has entrepreneurial ambitions and to the ones who do have it the course does have useful inputs.
for the rest its like the degree will ensure:
-a high paying job
-a secure career and future
-networking for a better career progression
-branding of self ( its pathetic really but it works wonders as some has mentioned earlier “MBA from IIM” three words speak for themselves)
if entrepreneurship was never their objective how can it be expected as an outcome?
Some time back i was working in close association with an entrepreneur struggling to establish his business and there were numerous occasions where I felt that an MBA exposure could have helped him break few barriers which were really limiting his progress. Well he continues his struggle and I still believe that a guy with such creative ideas could have grown manyfold if he had better exposure. He will still but maybe it will take much longer
Rahul Chhajer
“Are business schools really worth it? Mark Zuckerberg (Facebook), Steve Jobs (Apple), Bill Gates (Microsoft), Sergey Brin/Larry Page (Google) didn’t go to business school. If you want to start a companyjust do it! B-school turns you into a big corporate type and deadens the entrepreneurial spirit. Just hang out in Silicon Valley or one of the other rich entrepreneurial ecosystems and learn how to start companies there. Who ever heard of a company being started in B-school?”
And so on. Perhaps you’ve said or heard some of the same things—often at a lunch table or beer bash, loudly enough to gather a number of listeners. The combination of selective facts and romantic brio seem to make this an irresistible argument. But what is not acknowledged offers a compelling argument to go to business school if you want to start and grow a company.
Plainly, one should not assume that entrepreneurship is only associated with founding a company. We know that many of the same qualities are associated with growing a company. Why should we expect entrepreneurs to toil only in fledging startups? Large companies, seeking to rejuvenate their cultures, want to hire people with entrepreneurial spirit. At Darden and its peers, most MBA graduates are hired by mature firms, but this does not mean that they are not entrepreneurs in fact or spirit.
A great B-school education won’t guarantee success, but should improve the odds. It will accelerate your growth, compressing years of hard knocks insights into a short time. It will build your business acumen and help you understand the pitfalls and risks on which other businesses have foundered. It will leaven your romanticism about entrepreneurship with a very practical grasp of what it takes to succeed in business. Perhaps most importantly, a business education will disabuse you of the notion that entrepreneurial success is a matter of the great lone individual, the genius, the maverick like Jobs/Gates/Brin or whoever else you idolize. Instead, b-school will teach you that entrepreneurial success is substantially about teamwork, networks, and business relationships; success is not about opportunism but about living into a purpose for your life with intentionality and integrity.
Pratik S. Deshmukh
Hi,
Though Entrepreneurship itself is like an MBA , how about doing MBA in ENTREPRENEURSHIP.I am a software engg with 3+ yrs of work exp.
I am thinking a lot on it and am about to join a university full time program for this course. Can you help me in highlighting on this case.
Like pros and cons of MBA in it. As such I dont have an interest in other fields of MBA but since its in Entrepreneurship I am interested and thinking so.As if not now then in future doing an MBA will be an issue for me .
Pratik