How does an MBA help an entrepreneur?
Meghdeep Patnaik | March 22, 2019
If you are wondering, “Do entrepreneurs need an MBA?”, then the answer is no. You do not need a degree to own a business. An MBA degree is not imperative to become a successful entrepreneur, however, it gives you an edge over your contemporaries. Moreover, you will be able to make critical decisions so your start-up venture can become successful.
What is an MBA all about?
MBA is the program of study that equips you with skills related to business planning, marketing, strategy and finance. If you want to become an entrepreneur, an MBA could be the first step for you. In order to kick-start a business, you need to have extensive knowledge about the market trends, customers’ needs and the business environment. Let’s take a look at the components of MBA.
- Human resources: a company is made by the people and for the people. Human resources is an essential component of an MBA. People management skills can have a huge impact on your business as this includes key leadership and communication skills.
- Operations: a vital component of the MBA syllabus, operations management involves capacity planning, quality assurance, productive analysis and improvement. Operations management is critical to the success of a business.
- Strategy: any business, small or large-scale, requires strategy management to be in place for it to run smoothly. It is important to run a business based on strategic plans in order to identify opportunities and make the best of them.
- Finance Management: the journey of an entrepreneur starts from an idea, followed by investment. When starting a business, finance management automatically becomes a core component, given the amount of investment made. Finance management enables you to manage capital and maximize the business’ turnover. It requires smart financial planning and appropriate decision-making.
- Marketing Management: in today’s world, marketing is the name of the game. Marketing management can give your business the boost it needs to become a successful endeavour. The idea of marketing management is to deliver products and services that match the demands of the customers. It includes segmentation, targeting audience, differentiation, product positioning, etc.
How does an MBA help entrepreneurs succeed?
An MBA degree can carve out the path for a future entrepreneur. Becoming an entrepreneur is not an easy task – you will be self-employed, and though it seems exciting, it is not a walk in the park. This is where the advantages of an MBA come in. This program can make the path for you to become an entrepreneur a tad easier. Let’s see how!
- Skill development: when you are planning to take on the world single-handedly, it is always a good move to develop important skills. In order to start off your journey as an entrepreneur, you will need some basic understanding of business principles, market trends and practices. MBA programs are designed to equip you with these skills. You will acquire technical skills, understand how to strategize your finances to make the business viable, and become familiar with other aspects of business management like advertising, sales and business administration.
- Trial and error: while you may have set your mind on starting a new business, having knowledge about business dynamics always helps. During your MBA degree, you will interact with a diverse set of minds, which will push you to come up with more creative ideas for your business. The program will also give you time to think over your ideas and plan a more detailed path for your entrepreneurial debut.
- Partner-to-be: when you join a business management program, the chances of meeting like-minded students are high. Management programs present you with an opportunity to make connections, interact with students who share similar goals, and you might even end up finding a future business partner.
- Credibility: obtaining a business degree will have a positive influence on your career. More often than not, your career choices shape your future and an MBA degree from a reputed university will give you more credibility when you approach investors.
What skills does an MBA give you?
Have you paused and asked yourself, “Should I get an MBA?” Well, read on to find out the advantages of an MBA and how it benefits your purpose. Management programs help you develop a series of skills. They are:
- Budget management: entrepreneurs, generally, work on a very short leash in terms of finances. The investment might be substantial, however, it is also necessary to channel the finances appropriately. Hence, having sound knowledge about budget management techniques can be extremely helpful.
- Leadership skills: one of the most dynamic skills you can develop during your management program is leadership skills. Since the company is your baby, it is necessary that you lead from the front and be actively involved in the decision-making process.
- Diversity management: it is imperative that your future company will have a bunch of diverse employees. During you course, you will learn to deal with people who have different interests and outlook in life. This will prepare you for potential employee diversity in your MBA start-up.
- Research & development: for any entrepreneur, research and development makes up for most part of the journey. Business courses include subjects in their curriculum which emphasise on the importance of research and development. Research and development is crucial for a successful business.
- Planning and meeting: a plan without deliberation might not produce the best outcome. An MBA will teach you the importance and techniques of effective planning and the need to deliberate over the plan in meetings. This will prove to be beneficial in your career as an entrepreneur.
- Miscellaneous skills: while technical skills are important in shaping your career, there are some skills which will help you become a better professional. Soft skills, critical thinking and analytical thinking are indispensable in any profession. Since, business management is a professional degree, it will help you develop these vital skills too.
Tips for studying MBA
- Motivation: you will often end up questioning yourself, “Should I start a business?” Doubting your dreams can demotivate you. Try to keep yourself motivated during the course of yourmanagement studies. You might enter the program with ideas of your own, however, interacting with different people can be overwhelming. You will come across peers with different ideas, however, this should not bring you down. Use this as a way to motivate yourself to come up with creative ideas and realise that everyone has their own unique experiences to share.
- Be open-minded: an important characteristic of a successful professional is being open-minded. Be willing to accept new ideas and receive constructive criticism from your peers and professors during the course of your degree. This will not only help you to grow as a person, but will also instil the importance of teamwork and give you the will to accept challenges.
- Time management: as mentioned earlier, management programs can get busy. You will have to manage your time in a way that you can give equal attention to academics and extracurricular activities. This will help you to stay focused on your career, without it becoming insipid.
Who can study an MBA at UCW? (entry requirements)
One component of the eligibility criteria for enrolling in the MBA program is a Bachelor’s degree from a recognized university, with a cumulative GPA of 3.00 out of 4.33 scale (or equivalent) or better. For additional requirements, visit here.
The combination of entrepreneurial skills with business management skills is unbeatable. One of the most prestigious institutes that helps students start their journey of becoming an entrepreneur is University Canada West (UCW). They offer a graduate program - Masters of Business Administration (MBA) - to help students realize their dreams. If you are set on the path of becoming an entrepreneur, then wait no more. Go ahead and sign up for UCW’s MBA program now!