Bill Gates
Mark Zuckerberg
Dhirubhai Ambani
Steve Jobs
Every single one of us reading this post definitely looks up to at least one of these above individuals, if not more. Apart from being ultra-successful in business, they do have a lot in common, but the factor that I want to look at is their education. Dhirubhai Ambani, the least educated and the other three being college drop-outs. Well is education needed for entrepreneurial success or is education actually a hindrance to entrepreneurial success? Well no one has a perfect answer to this question but based on my experience at London Business School, I observed how students from my school, one of the best in the world dealt with entrepreneurship and how these schools prepare you to succeed or fail in the entrepreneurial world?
How does an aspiring entrepreneur get lost in B-School?
It is often said risk is best taken by a man who has nothing to lose. When you have a lot to lose you really cannot risk so easily and that’s what primarily happens at Business School. Day 1 you see 20% of the student community passionate about entrepreneurship, building on ideas but as time progresses this number reduces. Why? Because when you go to a top B-School you have invested a large amount as fees and that the other 80% people around you have come to the school to advance their careers. So as time moves forward and people start applying for jobs, the aspiring entrepreneur the 20% apply too, they might get an offer in the early 6 digit USD figure and that offer seals his entrepreneurial fate then. His response to entrepreneurship is then that with a couple of years of experience at a job I will move into entrepreneurship later.
How do schools indirectly affect aspiring entrepreneurs?
What do people largely look at when applying to B-Schools? Prospective jobs on graduation, salary jump etc. These figures decide most people’s choice and thus it is natural for schools to put a thrust on getting their students job so as to build the school report card well. So when you land the first day in school, an army of professionals called career services welcome you whose only job is to get you the job of your dreams. They are equipped with everything you can ever need, cv guidance, cover letter guidance, contacts. So the first week you land these genies make getting a job feel like the best feeling in the world and the ideal next step.
These 2 factors are they reasons as to why aspiring entrepreneurs get killed or lost in B-School but if someone is very keen and goes with a set mind he has a lot to gain.
How can an aspiring entrepreneur benefit from going to a top B-School?
- Perception Value: Knowing that you are from a top B-School does enhance perception value, and add credibility to your profile even in the eyes of other entrepreneur’s and VC’s and I have experienced the before and after perception
- Opening of a lot of doors: You get access to a sounding board for your ideas globally. My class has people from 37 countries that’s like my global focus group if I ever need one. An alumni network of 35000 people always willing to help.
- Structure: Business School does help you structure a lot of your thinking and approach. Entrepreneurship is never completely structured but using frameworks you learn at business school you can learn things about your own idea, you never could.
- Back-Up: Instead of looking at B-Schools as a high opportunity cost, look at it as a back-up if I ever fail, I can get good work.
What is the message I would like to give from this article? (Not preaching these are just my thoughts based on my experience)
- If you are ever going to a B-School decide your focus, if you are going for entrepreneurship go with a firm mind and use the school network, resources to the fullest while you are there.
- B-Schools also are very different focussed. If you are absolutely gung-ho on entrepreneurship look at Babson, Stanford, Harvard. Other schools may be good but if you go into a school where 90% of the people are doing something different from you, you might just get influenced.
- Never underestimate the power of education, even if the top entrepreneurs were drop outs, there is always a lot to learn at Business School. If you get into a top school and want to be an entrepreneur, its like paying to meet the smartest people, get a global focussed group, get a brand and a network!
To end on a funny note if you ever eavesdrop on two business school students talking, the most common questions/discussions you might end up hearing.
1) Are you looking at finance or consulting?
2) What are the bonus rates going on for investment banking jobs?
3) What is your exit strategy? (In a job world)
4) Oh you work at a start-up? Do they pay you?
5) Does that company sponsor work visas?
6) He got McKinsey/Goldman Sachs, he is set for life.
7) Lets go for the networking event, free drinks as well!
8) Where are you travelling for the summer?