Is an MBA worth it for entrepreneurs?

High-profile leaders like Mark Zuckerberg¹ and Steve Jobs²–business icons who dropped out of college to pursue their big ideas—give rise to the idea that successful entrepreneurship and advanced business degrees are separate career paths. Either follow your dreams and start your own business, or stay in school and learn about working for someone else.

This is, of course, a false dichotomy. There is no template for entrepreneurial success. For every Zuckerberg and Jobs, there's a billionaire founder like Michael Bloomberg³ or Nike CEO, Phil Knight,⁴ who are both MBA grads. There are also plenty of business school dropouts who never managed to get their entrepreneurial ideas off the ground.

When it comes to acquiring the knowledge and experience to be an entrepreneur, there are many routes to success. Those asking whether an MBA is worth it for entrepreneurs are perhaps considering things from the wrong angle. The question is whether the various MBA benefits for entrepreneurs are of particular use to you and your career ambitions.

Research suggests that a large proportion of MBA students (more than 80%, per a survey conducted by venture capital firm Illuminate Ventures⁵) are interested in entrepreneurship. This article looks at the pros and cons of an MBA for entrepreneurs, moving past the debate about whether real-world experience is better than formal MBA training, to consider what the advanced business degree can do for aspiring entrepreneurs.

What entrepreneurs gain from an MBA

An MBA is an advanced business degree with a focus on management and leadership. That focus overlaps considerably with the priorities of entrepreneurs, who need to understand how to run a successful business.

A good MBA curriculum should include several courses that prepare you for what it takes to be an entrepreneur, such as financial management and business planning. Much of the program will hone your strategic thinking and decision-making skills. Programs such as the online MBA from the Kansas University School of Business offer dedicated electives concentrated on key aspects of entrepreneurship, such as leadership and organizational development.

Further, you should expect an MBA program to provide networking and mentorship opportunities. These range from the connections you form with peers and faculty during classes and coursework to formal networking events with alumni or business leaders.

How an MBA helps startups succeed

It's tempting to imagine that entrepreneurial success rests on a strong product or service and little else. Still, startups face a host of challenges beyond simply developing and selling a good idea. Even a startup based on a brand-new product is likely to face many of the same issues that confront all businesses: securing funding, managing payroll, and generating cash flow.⁶

An MBA program trains you in essential startup practices, such as how to apply business frameworks to new ventures, conduct and evaluate market analysis, and assess and manage risk. Startup founders need to hit the ground running, understanding business growth strategies and how to access capital to get their venture underway–skills and knowledge that you can expect to gain from an MBA.

A program focusing on entrepreneurship will also feature events that put you in contact with investors, new business incubators, and active alumni networks to help you explore and develop opportunities before you graduate.

Potential drawbacks of pursuing an MBA

While there are clear benefits of an MBA for entrepreneurs, it's not a path that is suitable or feasible for everyone.

MBA programs can vary significantly. Programs may focus on different core skills. For some, entrepreneurship may not be a priority for study, offering only a few classes on the subject and providing only a surface-level introduction.

Similarly, there are programs designed for a variety of personal circumstances. Online programs offer working professionals considerable flexibility, potentially allowing you to gain your MBA without giving up your job or relocating to continue your schooling.

Perhaps the most pressing consideration is a program's cost, both in time and money: Up to $200,000 over two years of full-time study, in some cases.⁷ And that calculation doesn't account for the cost of putting a career or business on hold.

Though that may seem daunting, there are highly reputable MBA programs that do not come with an eye-watering price tag. For example, KU's online MBA is among the US News and World Report's top 10 best online MBAs.⁸ That top-tier ranking comes at almost half the cost of the average MBA: KU's MBS costs $895 per credit, compared to the average per-MBA-credit cost of $1,605, according to US News and World Report.⁸

The good news is you can mitigate many of these concerns by selecting a program aligning with your needs. If you want to focus on entrepreneurship and innovation, an MBA program should emphasize the skills necessary to support them. Review the curriculum to ensure it includes courses that speak to your career ambitions.

Is an MBA right for you?

Is an MBA necessary for entrepreneurs? No, but the better question is whether an MBA will help fulfill your entrepreneurship ambitions.

Consider your overall goals and whether you might benefit from the formal business training and facilitated networking advantages you get from an MBA.

Finally, to find entrepreneurship-focused MBA programs, look at curricula and course descriptions for concentrations, elective groupings, and faculty specializations that speak to a strong focus on entrepreneurial skills and innovation.

Connect to the Jayhawk Advantage with a KU MBA

Why an MBA for entrepreneurs? The right MBA can set you up for long-term entrepreneurial growth, equipping you with the skills and connections you'll need to start and develop your own business.

For a nationally-ranked, entrepreneurship-focused MBA that offers flexibility for working professionals, consider the online MBA from the Kansas University School of Business. The program encourages successful careers, with 85% of alumni reporting an increase in salary after graduation. At KU, you'll also get the Jayhawk advantage: Connection to a global network of more than 25,000 alumni.

For more information, contact us directly or review admissions and course details online. When you're ready to discuss how the KU MBA can help you, schedule a call with an admissions outreach advisor.