I was reading Mark Suster’s blog about his thoughts on the necessity of an MBA for software start-up entrepreneurs or VCs (I recommend you check out his blog – it’s great). Mark’s conclusion is that MBAs are not necessary for start-ups and his reasoning is that ‘computer intuition is hard (not impossible) to acquire. Business experience, on the other hand, is better learned hands-on.’
I agree with Mark’s basic thoughts on the issue but would also identify another skill set that cannot truly be learned in an MBA school – implementation abilities. The ability to implement a strategy is equally important to the strategy itself. I have no doubt that MBA graduates from America’s top business schools are great strategic thinkers, but the ability to transition an idea from concept to a marketable product is not something that is easily learned – especially in the tech industry.
The best place to pick up this skill set is to work for start ups and FAIL. I’m sure that anyone who was worked for a grass roots start up and rode the roller coaster to failure will know what I’m talking about. The inherent speed of innovation that occurs in these small teams teaches you far more in a matter of months, than you’d learn in a two year MBA program. I’ve heard some say that one year of start-up experience is equal to five years at a large corporation. That’s because at a start-up you’re forced to wear many hats and learn what it takes to make things happen everyday.
MBA’s do provide great networking opportunities. This is probably the big value add for would-be entrepreneurs. That said, I’d argue experience at a start-up provides a far greater networking opportunity. Don’t believe me? Just check my LinkedIn. Through my years at various start-ups I’ve had the opportunity to work with strategic level management at many Fortune 500 companies such as RIM, Bell, Motorola, ESPN, eBay, the list goes on…
If you’re considering an MBA for a career in corporate finance, then it’s definitely a good choice and to some degree a requirement. However, if you’re considering getting your MBA specifically to learn how to be an entrepreneur or get VC money one day, I say save your money and get involved in a start-up in your specific field of interest. You’ll rapidly learn how to build and market a successful product – and at the same time probably learn even more valuable skills in the category of ‘what not to do’.
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Coming from a startup that seems very likely to fail, I can really relate!