WiWi-News Detail

Earlier this year, my International Business project took me to one of the fastest growing cities in the world: New Delhi. The three-month live consultancy project is a key feature of the MBA at Manchester Business School and provides a great opportunity to broaden students’ international work experience. While in the Indian capital, I was fortunate enough to be given a guided tour of The Global Open University of Nagaland. The university is one of the many Indian academic institutions now offering the MBA qualification. One reoccurring message caught my attention as I wondered through the university campus, staring down at me from posters in almost every room – “Be a job provider, not a job seeker”. It got me thinking….

The Indian economy is currently growing much faster than western economies. While there are many factors behind this trend, a contributory factor is undoubtedly the huge increase in the number of Indian entrepreneurs. Enterprise is flourishing as the country loosens its bureaucratic control and laws restricting competition.
In contrast, the number of entrepreneurs setting up in the UK and the US has generally fallen over the last few years. Arguably, if either Western economy is going to credibly tackle their deficits, without incurring a massive welfare bill as a result of cuts, we need entrepreneurs more than ever. Entrepreneurs are the eternal optimists undeterred by the fragile nature of our economy.

Who could be better suited to answer this call to arms than a freshly qualified MBA graduate, having received a master-class in the science of commerce and a newly acquired network consisting of the brightest prospects in business?
Indeed, entrepreneurship is the second most popular form of MBA specialization, with top business schools such as Harvard, Stanford, Wharton and Babson all offering programmes oriented towards entrepreneurship.

Additionally, recent MBA graduates from UK and US business schools face a national commercial environment vastly different to how it was before they began their degrees. Two of the sectors that historically used to recruit the bulk of fresh MBA graduates, namely finance and management consultancy, are almost undistinguishable from what they were two years ago.

Surely there must be thousands of recent MBAs starting new ventures, ready to man the engine room to economic recovery in the western world? Not the case, I’m afraid.
Allow me to illustrate, Stanford Business School is recognized as one of the world’s leading business schools, even offering an MBA specialized in entrepreneurship. The Stanford campus is situated in the fertile environment of Silicon Valley, the world’s leading hub of high-technology innovation and development, an area accounting for no less than one third of all venture capital investment in the United States. There is no doubting Stanford’s contribution to the evolution of Silicon Valley, yet information published by Stanford, suggests that only 3-6% of their MBAs become entrepreneurs upon completing their course.
Conversely, many of the World’s most famous and successful entrepreneurs wouldn’t go near an MBA, despite the undisputed relevance to their businesses. I could not picture Richard Branson sitting through a three hour-long financial accounting exam.…

There has been an unresolved age-old argument as to whether or not entrepreneurship can be taught. Branson is certainly testimony to the fact that a good education is not a necessary pre-requisite to being a successful entrepreneur.
I believe that the spirit of enterprise can be taught, but characteristics such as intuition and appetite for risk are harder to learn in a lecture hall. It is necessary to get into the mindset of an entrepreneur to understand their constitution. Entrepreneurs will take massive personal risks, often in defiance of logic. MBA programmes tend to encourage students to apply logical frameworks. All entrepreneurs will make mistakes in business. The MBA knowledge can help to reduce the frequency and cost of wrong decisions, whereas entrepreneurs with a limited education sometimes learn the hard way.

The skills taught on MBA programmes also provide an overview of the essential building blocks of business and, in most cases, offer an insight into the valuable softer management skills such as negotiation and relationship building. This knowledge can only aid people starting a new venture. A strong business acumen breeds confidence that is visible to business associates and rivals.
Despite having highlighted the disparities, there are plenty of similarities between stereotypical entrepreneurs and fresh MBA graduates. Shared characteristics between the two groups include being competitive, dominant, tenacious and driven. MBA students are not totally risk averse either, it’s a brave decision to sacrifice salary, time and money to study for a MBA.

The question remains, why do so few newly graduated MBA take the entrepreneurship route? Only the very brave will continue to sacrifice further salary, time and money at the end of their studies to set up a new venture. For many it’s simply not an option.
There are no guarantees at the end of an MBA programme. Statistics issued annually by business schools and publications like The Financial Times are evidence of how the MBA can accelerate careers and increase earning potential. The temptation is for new MBA graduates to be drawn to lucrative corporate jobs, with many having borrowed money to pay for the tuition and living costs. When the initial debt is cleared, they often become used to a good salary and are generally saddled with mortgage and family commitments. This is where I consider a big part of the problem lies.

There is some light at the end of the tunnel, research published by IE Business School suggests that 25% of MBA graduates will start up their own business at some stage during their career. Perhaps new MBA graduates want further commercial experience and connections before taking the leap of faith.
Western governments are now in desperate need of entrepreneurs to seize opportunities from the downturn, while others look to be led out of the gloom. Indeed there is a need for enterprising types to provide services no longer offered by governments. Very few people will be better suited to answer the call to arms than business savvy recent MBA graduates. If MBAs are to continue to be recognised as future business leaders, then we need a higher percentage to be creating their own innovative businesses.

I had a turning point during my MBA course when I found myself completing a 25-page application form for a commercial role with a large multi-national company. I found I could not even justify to myself why I wanted to work for such a huge organization. The application form ended up in the waste bin. From that point onwards it was always going to be something a bit more maverick.
I graduated from the MBA course earlier this year and set up a joint venture with a local successful businessman I met on my MBA journey. ‘The Sympo’ is our innovative product – the antidote to the dullness of conventional conferences.
I have to be honest, I am not on a personal crusade to fix the UK economy, but I’m pleased to report I am no longer a job seeker. My next challenge is to be a job provider……

Manchester Business School will be offering Personal Consultations for both the Full-Time MBA and Part-Time Global MBA programmes in Germany.
Meet us in Frankfurt between the 13th and 15th March and in Dusseldorf between the 16th and 18th March.
For more information and to book a place, please contact Martin Ross, Senior Marketing and Recruitment Officer at +44161 275 7212 or martin.ross@mbs.ac.uk