Many view entrepreneurship as the next big milestone in their lives, but are they doing it right? Are management and leadership the only skills required to grow a business? Entrepreneurship is undoubtedly a challenging endeavor. According to a report, 20% of businesses fail in their first year!
Nevertheless, the importance of entrepreneurship can not be overstated. It has always fuelled our society’s growth, with innovative individuals turning small businesses into global multimillion-dollar corporations. Today, these success stories and individuals are inspirations for a huge percentage of our population globally.
As more and more people opt to be ‘their own boss,’ the global landscape becomes fiercely competitive. This saturated market of approximately 582 million entrepreneurs across the globe demands the survival of the fittest mindset.
Success in entrepreneurship demands more than a small effort – you need to be skilled in multiple areas. To enhance your journey, consider an MBA. This degree proves to be a crucial asset, aiding entrepreneurs in brainstorming, drafting, organizing, and financing a business.
Statistics from 7,800 MBA graduates indicate that 22% launched startups during or after their program, with 84% still functioning three years later.
An MBA equips entrepreneurs to navigate complexities. This article highlights how entrepreneurs, regardless of industry, can benefit from an MBA.
Developing Financial Literacy
More often than not, money is the lifeline of a business. This explains why new businesses have a high failure rate associated with a lack of financial literacy. An online MBA in accounting is the perfect stepping stone for budding entrepreneurs to help them navigate the finance and accounting landscape. Credible institutions now offer a great MBA in accounting program designed to equip managers and leaders and help them find their way around accounting tools and concepts, interpret financial statements, analyze rewards and risks, create value for shareholders, and learn to finance a newly established company.
You may have had an Eureka moment, but a great idea alone is not enough to generate money. Most entrepreneurs lack the skills to effectively budget for their new business. Others fall into the trap of over-investing – the belief that they must spend more money to earn money. Many force themselves to grow too fast – adding unnecessary equipment, allocating huge payrolls, and investing in expanding on the first sign of progress, without ensuring they can maintain the momentum.
Acquiring an MBA in accounting isn’t just about numbers; it’s about understanding the language of business and making informed financial decisions.
Interpersonal and Negotiation Skills
Many businesses might be technically profitable but still end up failing for financial reasons. What went wrong here?
These failures often can not be traced back to a lack of payments but rather a lack of assertive entrepreneurs who lacked negotiation skills. To be cordial business partners, such entrepreneurs might accept payment conditions based on their clients’ or customers’ terms and not the company’s financial needs over and over again. This leads to delayed payments, resulting in losses for the company since it has little capital left to pay suppliers on time or even distribute salaries!
But why do these entrepreneurs accept terms and conditions that may not be in the company’s best interest in terms of finances? This is due to the lack of negotiation training and experience. While graduate schools teach individuals how to monitor their cash flows and manage their expenses, they also guide them on how to conduct meetings and assert their business terms fairly but firmly.
Your Net-Worth is Your Network
One of the most valuable and yet the most overlooked benefits of graduate school is establishing your network. In the entrepreneurial arena, connections are akin to gold. In a graduate program, entrepreneurs are plugged into a network of professionals from diverse fields, creating opportunities that extend far beyond the classroom. Even when pursuing an MBA online, you’ll be part of a valuable network of peers, teachers, alumni, and guest speakers. Some might want to join your company or connect you with clients and investors.
While business leaders are not averse to risks, they always make educated guesses and use credible information for their decision-making process. People in your network are more likely to partner with you as they are well-versed in your work ethic. Additionally, companies may be more willing to work with you if you attend school with their employees. Connections made during graduate school are also a valuable asset in catching the eye of wealthy investors. Or maybe your school peers could become your lifelong business partners. Think Starbucks and Facebook.
Enhanced Operational Efficiency
A commonly held misconception about an MBA is that it overemphasizes theory over practice. The belief that school will never prepare you for the real world and its issues may be true to a certain extent, but let’s not overlook the fact that graduate school perfectly equips you with the tools, theories, and practices necessary to find your footing in the business world. Love Hudson, the co-founder of Mar-Dat and an MBA graduate, stressed the importance of getting an MBA as he believed it gave entrepreneurs the foundation for understanding how businesses work.
Understanding how to operate a business smoothly is a major aspect of the MBA curriculum. Students learn how to run the different elements of a business and are exposed to real-life scenarios for a more holistic approach. Another important factor here is that mistakes during graduate school will not cost you as gravely as they might in an actual business. Courses such as operations and supply chain management and data analytics equip graduates with the knowledge and ability to operate their businesses efficiently. Your graduate studies will teach you how to operate with precision, ensuring that your business runs at peak efficiency and providing you with a competitive edge in the market.
An MBA isn’t just a degree or a certification to make your resume look good. It’s a transformative journey specifically tailored for diverse professionals. Remember, it’s not just about learning; this journey ends with a transformation into a business maestro, ready to conquer the entrepreneurial world.
Now that you are well-versed in the ways an MBA can benefit your entrepreneurial dreams, it’s time you grab your ticket to unparalleled success in the ever-changing business landscape. Best of luck with your future endeavors!