Almost all aspiring business graduates dream of heading up their own business someday; and while most MBA holders successfully secure high-paying and gratifying jobs, only a selected few are actually able to start their own ventures. To the millennial professional, being their own boss is not just a pipe dream anymore; more and more young professionals are moving towards start-ups and are keen to work with their own business models, however big or small.
But there’s a big difference between having a great idea and actually implementing it, and a business degree actually equips you with all the important tools and foresight which will not only empower your entrepreneurial side but will also help your company sustain and thrive even in this cutthroat market.
How exactly does MBA help in entrepreneurship?
1. Business development
An MBA teaches you the most crucial thing of all – how to develop a business. The programs are specifically designed to cultivate strategic problem-solving. You may know that analytic thinking is key to your MBA; this is implemented by a diverse range of relevant educational tools and case studies that the aspirant has to study and examine and then reference in their own personal scenarios.
This helps you acquire a thorough and effective insight into any industry and its demands; curriculums are structured in a way that challenges their management skills and leads students towards conceiving newer avenues to make way for viable business models.
Needless to say, this goes beyond ideating and students actually need to work on the data they have, to instrumentalize this set of knowledge to come up with effective business strategies and growth plans. By the time they acquire the capital for their own venture, they are covered on the bases of entrepreneurship and will be able to see their business model through.
2. An effective communicator
When you’re heading your own company you will have to be the most vocal about it, be it in terms of management or ideating or even marketing. Since it’s your venture, your clients, investors, and your employers will look to you to explain to them what you’re doing and exactly how you want things done.
It is very important for you to express your plans and articulate them in a way that gets through to your team; a business course is something that helps with this in a big way. In fact, when you’re pursuing an MBA you will notice that there are programs that have been curated to hone your communication skills. Also, check out the other benefits of MBA.
Remember, a lot lies on your abilities to communicate well with your team of employees and co-workers, especially when you’re running the show; from productivity to company morale to work culture and of course, work ethic, as a boss your workplace conversations helps shape all these areas and thus, effectively builds your company’s image. An MBA course makes sure you, as a communicator and an entrepreneur, are driving all your energies and resources in the right direction.
3. Your future workmates
It is widely known that a business degree doesn’t just give you credentials but also an entire ecosystem that nurtures your skills throughout your career. Simply put, while studying for your MBA you’ll find that networking plays a crucial role in your education, and your network of classmates, alumni members, mentors, business gurus, professional acquaintances, etc will have an effective impact on you and your future.
As a result, when you’re set to start your own company, your peers will not only end up being good advisors but can prove to be great collaborators and investors too. There’s obviously a dynamic of trust involved with people you’ve known closely for years; if you have a novel start-up idea or a plan that needs implementing or financing, your peers will contribute substantially with insight, professional inputs and even with labor as you may just find people to work for you.
Since you will have a connection with people from every spectrum, from IT to marketing to human resources, you will already have access to a pool of talent and knowledge which will help your business hugely.
4. Ropes of leadership
Almost anyone can have a great idea but not anyone can be a good and productive leader. This area includes proficiency in several areas, from communication to the delegation to good decision-making. Young professionals who are just starting out with their own business often have to learn on the job about how to be an effective entrepreneur and leader.
Again, there’s a substantial difference between being a good businessman and being a good leader; as a good leader, you will not only be responsible for taking your company to newer heights but also keep the company and its workforce in shape while keeping the morale up. It’s not an easy road to walk, even with a business degree but when you have the wealth of professional knowledge that an MBA brings you, you’ll find things to be less of a challenge.
5. Cost analysis
Launching your company just isn’t enough in this market; you will have to be prepared to survive a whole year or perhaps more without making any profit, no matter how good your business model is. This is where you need some highly advanced cost analysis skills that come in handy to keep your checks and balances in shape.
Cost-benefit analysis is the method which can be key in scrutinizing crucial financial components in your operation, and to make sure if benefits exceed the cost, like they ideally should. This is so important because the purpose of this economic analysis is not to just secure profits but it is essentially a roadway to making smarter, more informed decisions.
Because the data you gather helps you streamline your model further, making it leaner and more effective and you can decide upon some operational changes which need to be made when it comes to conserving resources, money and time. An MBA equips you with analytical tools that can make you a better decision-maker.
6. Thriving under pressure
Starting and running your own company is quite an ordeal, especially with the market being so erratic. It’s vital that you learn to work under a lot of pressure and ride out tense market fluctuations which are sure to affect your finances.
Handling shareholders and investors is a big part of your job as an entrepreneur, and if you don’t put up a self-assured front your financiers are the ones who start panicking. Interestingly, a business degree also focuses on the development of soft skills alongside personal growth which is an important way of upskilling your professional paradigm as it will help you tremendously when you’re trying to manage not only your investors but also your team of workers.
For newly emerging names in business, it is crucial to project confidence even as you are in the process of growth and learning. A business degree fine-tunes the level of confidence entrepreneurs have on their own skillset and management abilities. Since it also makes them better multi-taskers, it’s much easier for them to deal with several challenges at once.
This is relevant because when you’re heading your own company you have to keep on pressing for newer development strategies while dealing with flailing aspects of the company and your MBA essentially expands your horizons to straddle several problems at once.
If you are keen on upgrading your career with an MBA course, upGrad is offering the MBA(Executive) program in collaboration with the NMIMS Global Access School. The program has been designed to stand at par with the best on-campus Executive MBA programs across the globe.
And the cherry on top – upGrad’s excellent flexible and interactive learning and evaluation systems allows you to balance your personal and professional life in a hassle-free manner. Check out for more information & let our student counsellor help you with your questions.
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What tasks do entrepreneurs perform?
Entrepreneurs take on the role of implementing their idea and a role of a leader of their organisation. Being an entrepreneur could be risky but also can be highly rewarding. Entrepreneurs develop, produce, market, and sell their product or service with the end goal of profit. Entrepreneurs invest in, operate, and run their offices or stores. A modern day entrepreneur may have creative ideas for online use and use the power of the internet. Over and above leading business activities, they also hire employees, allocate their duties, and identify business opportunities.
Why do entrepreneurs need an MBA?
Entrepreneurs need an MBA for professional preparation of their business idea. An MBA gives you a direction in handling responsibilities that are not related to your creations or ideas. For e.g. the skill of managing finances needs to be learnt. As an entrepreneur, you need to understand and learn to be business savvy. Entrepreneurs need to start with a solid foundation of analysing what may and may not work in a business environment. By doing an MBA, you can have skills in place before you launch your startup. An MBA gives real-world preparation needed to navigate through a competitive and professional environment.
Which MBA skills can entrepreneurs use effectively?
Entrepreneurs need to learn business development, which teaches to cultivate strategic problem-solving. Effective communication is an MBA skill that is certainly needed when you are heading your organisation. You will have to speak about your venture to your clients and investors. Networking is a huge opportunity that an MBA provides. It plays a crucial role in your education, mentors, business gurus, professional acquaintances, etc. They are likely to have an impact on you. A good idea needs to be offered by a good and productive leader. MBA sharpens leadership and decision-making. Cost analysis is also an important learning in MBA.