Entrepreneurs have made somewhat of a disruptive name for themselves. Their career paths tend to exist outside of the realms of institutions and convention, and many are famous for lacking degrees or formal education. There are, however, some true benefits to business owners to be found in an MBA or in a Masters in Entrepreneurship. In fact, many MBAs hope to become entrepreneurs one day, and some start businesses right after graduating.
Why Might Business Owners Consider an MBA or a Specialized Masters in Entrepreneurship?
There are a number of reasons why business owners may make the decision to enroll in graduate education; all of them revolve around improving their chances of success. They may consider either an MBA or a Masters in Entrepreneurship in order to:
- Polish their understanding of business fundamentals: both a Masters in Entrepreneurship and an MBA provide business owners with a structured and formal education in business operations, financial management, marketing, and strategic planning.
- Network: where better than an MBA for business owners to meet others fascinated by business? Graduate education is a great opportunity to source talent, learn from the best, open doors to future opportunity, or even to meet investors.
- Access resources: MBAs and, especially, Masters in Entrepreneurship offer resources to business owners that range from networking opportunities with investors to startup incubators.
- Gain credibility: An MBA is solid proof of business acumen to any potential investors.
- Test ideas in a lower-stakes environment: both a masters and an MBA allow business owners to trial creative ideas and receive support on how to improve them.
What Can an MBA Offer Business Owners?
An MBA teaches vital business skills to all who complete one. According to the 2024 GMAC Corporate Recruiters Survey, employers are particularly keen on the following skills gained by MBAs:
- Communication
- Versatility
- Strategic thinking
- Innovation
- Leadership
But MBAs don’t stop there: they also teach financial management, operations knowledge, business planning and market research to their graduates.
All of the above are crucial skills for business owners. An MBA’s emphasis on developing and practicing these skills guides entrepreneurs towards success by teaching them how to navigate complicated situations, to make strategic decisions, and to cultivate a cohesive and productive team environment.
A particularly important way in which an MBA can benefit entrepreneurs is the manner in which these skills are taught. Many MBAs incorporate practical exercises, applied and active learning strategies, and real-world case studies in teaching. For example, when learning about financial management, MBA students can evaluate the fiscal strategy of existing companies and their consequent performance.
This practical and applicable manner of learning is a fantastic way for business owners to learn and apply skills in a low-risk environment. It allows business owners to take risks during their MBA, and to learn from the results—nurturing creativity alongside education.
Due to the level of content taught in an MBA, the program is best suited to early-stage entrepreneurs, established business owners, and those looking to scale.
What Is a Masters in Entrepreneurship?
While a Masters in Entrepreneurship covers many of the same business fundamentals of an MBA—financial management, leadership, communication, and strategy—it has a more direct relevance to business owners than an MBA. It is, as the name suggests, geared entirely towards entrepreneurship.
The Masters in Entrepreneurship is, therefore, designed in order to guide business owners towards success. It aims to equip them with the skills needed to start, run, and scale their businesses.
Topics that these programs often cover include, for example, entrepreneurship and innovation, global social entrepreneurship, corporate entrepreneurship, healthcare entrepreneurship, and small business entrepreneurship. The targeted nature of the Masters in Entrepreneurship means that it can be completed in just one year, rather than the two common for an MBA.
A substantial emphasis of the Masters in Entrepreneurship is innovation. These programs are places of risks taken, mistakes made, and failure embraced; creativity is nurtured alongside practical business acumen.
Many Masters in Entrepreneurship programs also provide students with hands-on experience. In some cases, this is the chance to expand their network beyond the classroom, with schools facilitating meetings between investors and industry experts. In others, it comes in the form of incubator programs or internship opportunities.
With its targeted approach to business, the Masters in Entrepreneurship is an appealing option for current and future business owners.
Top Programs that Offer a Specialized Masters in Entrepreneurship
According to the U.S. News and World Report 2024, the ten best Masters in Entrepreneurship programs in the U.S. are as follows:
- Babson Olin
- Stanford
- MIT Sloan
- Berkeley Haas
- Harvard Business School
- Michigan Ross
- Indiana Kelley
- Rice Business
- Pennsylvania Wharton
- Texas McCombs
Key Takeaways: The Benefits of an MBA or Masters in Entrepreneurship for Business Owners
Both an MBA and a Masters in Entrepreneurship offer some key benefits for business owners. These are far-reaching and wide-ranging, but some key examples include:
Learning to strategically grow a business
Entrepreneurs must understand how to spot opportunities for growth and sustainably scale a business. Through analysis of marketing strategy, market trends, financial management, and operations, Masters in Entrepreneurship and MBAs can offer this to business owners.
Networking opportunities
The contacts gained by business owners on an MBA or a masters in management will prove useful throughout their career. Faculty can support the development of nascent business ideas; classmates can bring new perspectives and opportunities to team up; alumni networks may open doors to referrals and investors.
Funding and resources
Graduate programs in business education open doors to pitch competitions and venture capital connections and, especially in the case of Masters in Entrepreneurship programs, incubators. Resources are available in non-financial areas, too: perhaps most notably in terms of access to industry-leading faculty who can provide expert guidance on business development.
Risk management
A masters degree in business not only teaches business owners how to handle financial, operational, and market risks—it proves to investors that they’ve been taught. Both the operational ability and the associated credibility are invaluable assets to have when starting and scaling a business.
Innovation and adaptability
At the core of entrepreneurial spirit is innovation. Without it, new ideas would not flourish and startups would not grow. The forward-thinking, creative climates of graduate business education institutions help this innovation to thrive.
MBAs and Masters in Entrepreneurship programs do this by providing business owners with the tools that they need to turn their ideas into reality; they “bridge the gap” between creativity and execution.
Nowhere is this innovation more important than when keeping up with the changing demands of a market. Markets grow and evolve constantly; staying ahead of the curve is a key part of innovation and, therefore, entrepreneurship. Students in MBAs and Masters in Management study market trends and shifts in close detail, learning how to spot and adapt to changes.
Enhancing Leadership Skills
In order to drive change, business owners need a strong team around them, and they need to know how to engage and motivate that team. A graduate education in business teaches how to do exactly that.
Graduate education is a fantastic way to network, to make space for creativity, and to secure a bulletproof understanding of business fundamentals. And, in addition to all that, it’s a brilliant way to build credibility with your investors.
Masters in Entrepreneurship and MBAs are perhaps suited most to business owners near the beginning or in the early stages of their entrepreneurial journey; those who would benefit greatly from the expert advice and perspectives gained through universities. For anyone considering it, take the time to weigh the benefits of each program against the costs of tuition, and ensure that they align with your personal business goals.
