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| How useful are MBAs for starting your own business? | How useful are MBAs for starting your own business? |
| (about 2 hours later) | |
| For many would-be entrepreneurs, getting a Master of Business Administration (MBA) qualification is seen as essential. | For many would-be entrepreneurs, getting a Master of Business Administration (MBA) qualification is seen as essential. |
| Yet with the most prestigious MBA courses in the US costing more than $100,000 (£62,000) in tuition fees alone, they don't come come cheaply. | Yet with the most prestigious MBA courses in the US costing more than $100,000 (£62,000) in tuition fees alone, they don't come come cheaply. |
| But does the celebrated qualification, and its teaching of a wide range of business skills, give its holders a big advantage when they set up their first firms? | But does the celebrated qualification, and its teaching of a wide range of business skills, give its holders a big advantage when they set up their first firms? |
| Or would people be better off if they instead simply went straight to setting up in business and learning on the job? | Or would people be better off if they instead simply went straight to setting up in business and learning on the job? |
| 'More clarity' | 'More clarity' |
| Eoin Bara, owner of Dublin-based design agency V7, was pleased to be able to call on the assistance of someone with an MBA. | Eoin Bara, owner of Dublin-based design agency V7, was pleased to be able to call on the assistance of someone with an MBA. |
| Back in 2012, the company was facing a problem - it was growing too fast. | |
| With big clients including Intel and Goldman Sachs, V7 went from two to 12 employees in six months. | With big clients including Intel and Goldman Sachs, V7 went from two to 12 employees in six months. |
| Mr Bara says he didn't know how to manage this growth. | Mr Bara says he didn't know how to manage this growth. |
| So he decided to ask an MBA-qualified management consultant to come in and take an objective look at the company, and guide them on what they needed to do next. | So he decided to ask an MBA-qualified management consultant to come in and take an objective look at the company, and guide them on what they needed to do next. |
| The MBA was able to show where the company was making losses, how they could make better use of their time, and how to plan for the future. | The MBA was able to show where the company was making losses, how they could make better use of their time, and how to plan for the future. |
| "We got more clarity on the day-to-day, which allowed us to focus on the future," says Mr Bara. "We didn't use to focus on the future at all." | "We got more clarity on the day-to-day, which allowed us to focus on the future," says Mr Bara. "We didn't use to focus on the future at all." |
| Debt issue | Debt issue |
| While author and journalist Philip Delves Broughton acknowledges the benefits of an MBA, he also thinks the cost can be a serious impediment. | While author and journalist Philip Delves Broughton acknowledges the benefits of an MBA, he also thinks the cost can be a serious impediment. |
| Mr Broughton wrote the book Ahead of the Curve, which outlines his experience on the MBA programme at Harvard Business School. | Mr Broughton wrote the book Ahead of the Curve, which outlines his experience on the MBA programme at Harvard Business School. |
| "One of the worst things you can do as an entrepreneur, starting young and getting going, is saddle yourself with a load of debt," he says. | "One of the worst things you can do as an entrepreneur, starting young and getting going, is saddle yourself with a load of debt," he says. |
| "That's a disaster, because it really hobbles you," he adds, referring to tuition fees of more than $55,000 (£34,000) per year for his two-year programme at Harvard. | "That's a disaster, because it really hobbles you," he adds, referring to tuition fees of more than $55,000 (£34,000) per year for his two-year programme at Harvard. |
| The high cost of an MBA was a major reason why American tech entrepreneur Brendan Mulligan dropped out of his course at Northwestern University in Illinois. | The high cost of an MBA was a major reason why American tech entrepreneur Brendan Mulligan dropped out of his course at Northwestern University in Illinois. |
| Mr Mulligan is the co-founder of Cluster, a mobile phone app which enables people to share photo albums. | Mr Mulligan is the co-founder of Cluster, a mobile phone app which enables people to share photo albums. |
| He calculates that he was spending $150 (£90) per hour on the MBA, and does not think it was worth it. He left roughly halfway through the course having spent around $45,000 (£28,000). | He calculates that he was spending $150 (£90) per hour on the MBA, and does not think it was worth it. He left roughly halfway through the course having spent around $45,000 (£28,000). |
| "I just didn't get much of a return to investment on that money compared to other ways I've spent money supporting myself being an entrepreneur," explains Mr Mulligan, who is now based in San Francisco. | "I just didn't get much of a return to investment on that money compared to other ways I've spent money supporting myself being an entrepreneur," explains Mr Mulligan, who is now based in San Francisco. |
| He suggests budding tech entrepreneurs actually get experience in their field by joining or doing an internship at a small start-up first, rather than sign up for an MBA course. | He suggests budding tech entrepreneurs actually get experience in their field by joining or doing an internship at a small start-up first, rather than sign up for an MBA course. |
| 'Better knowledge' | 'Better knowledge' |
| By contrast, London-based business investor Reshma Sohoni is firmly in the pro-MBA camp. | By contrast, London-based business investor Reshma Sohoni is firmly in the pro-MBA camp. |
| Ms Sohoni, co-founder of technology start-up investment fund Seedcamp, says that if a new business is to do well, having someone on board with an MBA is crucial. | Ms Sohoni, co-founder of technology start-up investment fund Seedcamp, says that if a new business is to do well, having someone on board with an MBA is crucial. |
| "Any organisation that's really gotten anywhere has MBA talent," says Ms Sohoni, who has an MBA herself. | "Any organisation that's really gotten anywhere has MBA talent," says Ms Sohoni, who has an MBA herself. |
| Ms Sohoni finds that from her experience, people with MBAs have a better sense of how to make a business more commercial, and have a much better understanding of running a business in general. | Ms Sohoni finds that from her experience, people with MBAs have a better sense of how to make a business more commercial, and have a much better understanding of running a business in general. |
| It is something that some other entrepreneurs with MBAs agree with, including Andrew Carroll, who co-founded the e-receipts company Paperless Receipts. | It is something that some other entrepreneurs with MBAs agree with, including Andrew Carroll, who co-founded the e-receipts company Paperless Receipts. |
| Having completed his MBA at the Cass Business School in London, Mr Carroll, 34, says he has a good understanding of a broad range of business concepts. | Having completed his MBA at the Cass Business School in London, Mr Carroll, 34, says he has a good understanding of a broad range of business concepts. |
| "I wouldn't be able to do what I'm doing now without having it, because it gives you a lot of knowledge about everything," he says. | "I wouldn't be able to do what I'm doing now without having it, because it gives you a lot of knowledge about everything," he says. |
| "So I can now sit happily in a meeting with a hedge fund manager or with a marketing director or a finance director. I may not know everything they talk about but I'll know most of it." | "So I can now sit happily in a meeting with a hedge fund manager or with a marketing director or a finance director. I may not know everything they talk about but I'll know most of it." |
| 'Valuable experience' | 'Valuable experience' |
| For entrepreneur Tobias van Amstel, 29, experience is more than important than having an MBA. | For entrepreneur Tobias van Amstel, 29, experience is more than important than having an MBA. |
| The Dutchman is based in London, where he co-founded Signkick, an online booking platform for advertising on billboards. | The Dutchman is based in London, where he co-founded Signkick, an online booking platform for advertising on billboards. |
| "I would advise everybody just to get started and fail at your first company and learn as much as you can and then start your second company," he says. | "I would advise everybody just to get started and fail at your first company and learn as much as you can and then start your second company," he says. |
| "That was actually the best education I could think of to start Signkick," he says of his first business, a hotel booking website. | "That was actually the best education I could think of to start Signkick," he says of his first business, a hotel booking website. |
| "The things I learnt there were so much more valuable than what any education could have taught me." | "The things I learnt there were so much more valuable than what any education could have taught me." |
| But despite much encouragement for young people with ideas to just start their own enterprises, American entrepreneur and seed investor Alex Hoye, 44, is sceptical. | But despite much encouragement for young people with ideas to just start their own enterprises, American entrepreneur and seed investor Alex Hoye, 44, is sceptical. |
| He spent several years working at Disney and McKinsey before doing an MBA at Harvard in the early 1990s, and is now based in London. | He spent several years working at Disney and McKinsey before doing an MBA at Harvard in the early 1990s, and is now based in London. |
| "I think there's a huge value to not learning everything the hard way," he suggests. | "I think there's a huge value to not learning everything the hard way," he suggests. |
| Mr Hoye believes prior experience is hugely important for entrepreneurs, and this can be gained either through work or through an MBA programme. | Mr Hoye believes prior experience is hugely important for entrepreneurs, and this can be gained either through work or through an MBA programme. |
| "I'm against the popular notion that one should just get out and do it," he says. "I disagree. I think you can learn a lot of the hard knocks by working with pros, or getting an MBA." | "I'm against the popular notion that one should just get out and do it," he says. "I disagree. I think you can learn a lot of the hard knocks by working with pros, or getting an MBA." |
| He thinks the practice of going over case studies during an MBA is especially helpful in recognising patterns and successful business practices. | He thinks the practice of going over case studies during an MBA is especially helpful in recognising patterns and successful business practices. |
| But despite these useful skills, Mr Hoye does question the high cost. | But despite these useful skills, Mr Hoye does question the high cost. |
| "To be honest, there's a very good chance I would give it a miss if I were 26 now," he says. |