Business schools across the U.S. have reported a decline in MBA applications for the second year running, even though companies are actively recruiting MBA graduates at record starting salaries. According to the Association of International Graduate Admissions Consultants’ survey, 40 percent enrolled in an MBA to improve their professional credentials, while 38 percent did so with the hope of improving their salary. While most people acknowledge the benefits that an MBA can have on a corporate career, not much is said about its role in entrepreneurship. Business owners (or budding business owners) can acquire a host of new skills that can help them make their business goals a reality – from developing your business visions for the future to identifying new growth avenues and boosting employee retention.
Establish And Grow Your Business Network
Most masters programs are taught by industry professionals and educators with formidable experience in their relevant industries. This is a great way to learn from someone with business experience rather than from a textbook. For business owners, this is an ideal opening to create and nurture budding professional relationships that can translate into partnerships for their business. The World Economic Forum has listed partnerships as the next business trend to watch, thanks to the shift in customer demand, and will prove to be a key tool for business owners looking to sustain their organizations in these competitive landscapes.
Classrooms are also filled with like-minded budding entrepreneurs, providing ample opportunity to learn from peer experiences. This opportunity provides valuable business resources, such as start-up information, financing and social marketing tactics. Career fairs and business mixers are a common feature publicized in business schools, giving you an invite to networking events.
Improve Financing Opportunities For Your Business Growth Or Launch
The skills taught throughout an MBA curriculum include cost and operations management – two key features of running a business. Strategies and knowledge learned during these can easily be applied to find ways to minimize your business costs, identify areas of concern, and make your operations more efficient. Most business programs are also adapted to keep up with current trends and market developments, including automation and big data. You can then apply these trends to your own business, if applicable, to keep it moving forward in line with customer expectations and remove unnecessary costs.
MBA graduates can expect an average pay rise of 12 percent or even higher in certain industries like tech and finance. With this, budding business owners can put away more money as business capital and shorten the time it takes to do so. For those worried about balancing the time and financial costs of an MBA and running a business, an online masters provides flexibility and the chance to carry on trading to fund the costs. Alternatively, current business owners can explore consulting opportunities as an additional income stream to fund their business. Around 5 percent of MBA graduates normally choose to swap their full-time employment role for their own business, according to a poll by The Wall Street Journal.
Build Creditability For You And Your Business Brand
Adding an MBA to your professional background can boost consumers’ trust in your business’ brand. While enrollment numbers have been declining, MBAs are still very much highly regarded by society and employers alike. MBA programs revolve heavily around business management modules, with the addition of a few specialization elements (such as human resources, finance or operations management). Consumers tend to trust business owners and management with a professional background, simply because they believe you are well equipped with the knowledge you gained during your studies. This can instantly raise your business’ profile in the eyes of the public and other businesses looking to work with you in the future.
There is no timeline for learning, especially for business owners. As an entrepreneur, you must be willing to commit to continuous professional development, and an MBA is one way to do this. It can open up new avenues for your business to grow, equip you with the knowledge to make your business cost and operationally efficient, and expand your business network. While it is an investment, it is a worthwhile one – for both you and your business.