Whenever we think about starting a business or a startup the first thing that comes to mind is an MBA degree. A lot of people think that an MBA degree is an essential or first step for building a startup or a business. Many people also consider it a one-time investment for which you will get lifetime returns.
An MBA degree will only be beneficial in a running business or a well-established business and not during the initial stages of the startups. In MBA you will not learn how to start a business or what business you are capable of doing, you will learn about management skills that are only beneficial if you are already running a business or if you have a family business and you want to improve the management of your business or add value to the business. For a startup, you need a unique mindset and idea instead of applying already executed and tried business plans.
MBA Degree in India
MBA (Master of Business Administration) is one of the most popular degrees in India. After doing an MBA program you can land up in good companies in various roles. The best thing is anyone can pursue it if you have arts, commerce, or science background. It is a 2 years program that includes 4 or 6 semesters but there some institutes that provide 1-year Post-Graduation Diploma in Management (PGDM).
You can also pursue through online education platforms or Distance learning. If you are an employee then distance learning or an online MBA degree can be a time-saver for you.
If I talk about fees of top 10 or 20 colleges in India it might blow your mind. Average fees of top colleges in India ranges from Rs. 20, 00, 000 to Rs. 30, 00, 000. Apart from the fees, you have to pay for coaching for entrance exams that range from Rs. 30,000 to 60,000.
Reasons to do an MBA Degree
- You gain qualitative and quantitative skills.
- When you do an MBA from a top college then you get recognition due to the established branding of that college.
- Doing MBA from a regular college helps you gain networking with other students and professors which might help you in the future.
- You have many career options like Marketing, Finance, Human Resource, IT, and International business.
Reasons not to do an MBA Degree
- Hefty fees and if you take an education loan then it can be double the amount of fees.
- When you go for one year program or two years program then you might not earn anything that results in a loss. (If you leave your current job)
- The skills that you gain in an MBA, you gain the same skills through online courses that save both time and money.
- Time and money investment is very high.
Is an MBA Degree helpful for startups?
If you are serious about starting a business or building your startup, now think if you invest the same time of 2 years and money i.e. Rs. 15, 00, 000 to Rs 30, 00, 000 on your startup. Which is the better option for you- investing both time and money in your startup or investing both time and money in MBA and then doing a job to pay back your fees (i.e. 5 to 7 years) and then starting a business.
Here I am not denying the fact that the MBA will give you skills, knowledge, and networking with people. But you can gain skills and knowledge through various courses and books. Second is networking, in today’s world there is many social media platforms where you can easily connect with people in your field of interest and the best platform for you is LinkedIn where you can connect with professionals and build a team, through Instagram and Facebook you can promote your business and gain customers. All these things will take time, like gaining knowledge, thinking of a business idea, building a team, and then initiating the business.
In MBA you will gain knowledge, skills, and a little experience from a three or six months internship but when you start your startup you will gain knowledge, skills, and experience when you face new challenges every day while running your business.
But still, if you have a dream of pursuing an MBA then you should be considering not spending Rs. 20, 00, 000 to Rs. 30, 00, 000, instead go for colleges that provide courses for Rs. 8, 00, 000 to Rs. 12, 00, 000, and do additional online courses or certifications.
Doing an MBA or not depends on you because time and money matter the most in your career. You can grow with and without an MBA but the most important thing is research in both cases- building a startup and taking admission in an MBA.
For initiating a startup you may not need an MBA but for running your startup you might need MBA degree holders. Don’t underestimate the value of the MBA!