Thu, February 13
Weather Icon Edmonton 11°C

EXPLORE OUR PARTNER PUBLICATIONS

Explore

The Value and ROI of an MBA

Entrepreneurs are different

Written by

share

Today, more than ever, it is widely acknowledged that entrepreneurs are slightly different. Important prerequisites for entrepreneurial business success are also different.

Entrepreneurship relies on skills that usually cannot be taught. Motivation. Passion. Curiosity. Tenacity. Visionary thinking. Risk-taking. Networking. Problem solving. It is also why many gung-ho entrepreneurs are opting to earn an MBA. Recent business surveys show that while an MBA is not an entrepreneurial necessity, at this time, most entrepreneurs don’t have an MBA, and more than half don’t have a bachelor’s degree.

Consultants and business schools point out that, just because some entrepreneurs didn’t need an MBA to achieve success, it doesn’t minimize an MBA’s benefits for entrepreneurs. While entrepreneurship does not require a degree and many entrepreneurs thrive on the innovative and the unconventional, there is value in receiving a formal education when it comes to launching a successful business. Particularly at the graduate level, an MBA provides a structured and in-depth exploration of business principles.

A reputable MBA program, for example, is designed to equip students with a robust understanding of business operations, strategic planning, financial management and leadership skills.

“The skills people likely think of when it comes to an MBA are in the functional areas like accounting, finance, marketing and human resources,” explains Michael Maier, associate dean of master’s and executive education at the University of Alberta’s School of Business. “A good MBA program goes beyond these functional areas and develops abilities to think in terms of systems and see how the functional areas interact with not only each other in an organization, but also society more broadly. Students also benefit from the alumni network and ability to build connections with other businesses and governments, both locally and globally.”

He adds the most important consideration; whether the degree is the right fit for the individual’s goals – as most people who opt for an MBA program are looking at the degree as a way to pivot or accelerate their careers.

“While traditionally, students would take the degree to obtain a promotion in their existing organization or industry, we’ve seen a more significant number of students looking to make a more dramatic shift and pursue their own path by using the experience to start their own business,” he says. “In determining whether the fit is right, the student must consider their objectives and expectations about getting the degree.”

The Alberta Business School’s MBA focus includes the uniqueness of entrepreneurs, acknowledging that entrepreneur students are incredibly diverse in terms of their backgrounds and skills.

“In general, we tend to see individuals who are in the early to mid-stages of their entrepreneurial journey and looking to manage and grow their businesses more effectively,” Maier points out. “Experience is an excellent teacher but also an expensive one in terms of time and mistakes that can be made.”

The MBA really helps to accelerate that learning process, so students can understand the bigger picture of their business and avoid many of the pitfalls that other leaders and entrepreneurs have faced.

“All business leaders will make mistakes, and it is better to learn from them in the low-stakes classroom than in the real-world business.”

For entrepreneur Chris Otto, a recent MBA grad, engineer-in-training with WSP Global Canada and co-founder of SwingMatch Golf, the decision to add to his already hectic days (and nights) by opting for an MBA program was personal and practical, especially in terms of costs and available time.

“I wanted to complement my technical background in engineering with a strong foundation in business. Advancing in my career and starting my own business would require skills beyond the technical, specifically in areas like finance, marketing, leadership and most importantly, soft skills!” he says.

“I also considered the value of the network I would gain through the MBA program. The chance to connect with like-minded peers, professors and industry leaders who could provide mentorship and open doors was a major factor.

“And yes, I realized the timing would be a factor. Pursuing an MBA, while launching a business was undoubtedly a challenge, but I knew the overlap would allow me to apply what I was learning in real time.”

As Otto admits, multi-tasking in business, launching a start-up and earning and MBA all at the same time, created personal and lifestyle speedbumps. The program often involves solving complex, ambiguous problems in case studies and simulations. While the course loads can be both stimulating and frustrating—especially for those accustomed to structured or predictable technical tasks—it was a challenge he was already working through in his startup.

“Starting a business is inherently a completely ambiguous challenge, so the learning I took from the program was immediately applicable to my real-life business challenges.”

Maier emphasizes the entrepreneurial value of MBAs and their impact on the entrepreneur’s driven priority of maximizing time.

“The MBA degree is challenging given the broad nature of the degree. Students want impactful learning experiences and recognize that any reputable program will require a significant investment of effort.”

Maier explains that most entrepreneurs recognize that time is valuable and tend to concentrate on how to maximize the application of the concepts being taught to their situation. Programs that are relevant, practical and focus on further developing the “entrepreneurial mindset” within an intensive format are well received.

“For entrepreneurs, the time element is critical as it is nearly impossible to study full-time without impacting the growth trajectory of their business,” he says. “It’s one reason why most entrepreneurs increasingly prefer the executive MBA format, which allows them to condense classes into four days per month and still complete the MBA within two years, while working at the same time.”

Otto is upbeat about the ROI of his MBA.

“It has definitely had a significant impact on my business and entrepreneurial journey. It is opening doors that I wouldn’t have had access to otherwise. One of the greatest values was the access to mentors, peers and professors with diverse expertise. They act as sounding boards, offering feedback and helping me anticipate numerous challenges before they arose.”

He credits his MBA for teaching him to manage risk and uncertainty—key elements of running a startup. From market analysis to scenario planning, it prepared him to make strategic decisions with incomplete information.

“Entrepreneurship can often feel like a lonely journey, but the MBA provided a supportive community and a wealth of resources,” he says. “It was a safe space to experiment, fail and learn. What I tested and refined during the program, I was able to apply directly to my startup, and that made all the difference. Perhaps most importantly, it gave me the confidence to lead, pitch ideas and network effectively – skills that are absolutely crucial for any entrepreneur.”

Written by

share