Do The Most Successful Startup Founders Have MBAs?

Whether to get an MBA or trust your fortune? This question has baffled individuals with entrepreneurial ambitions since the 20^th century. Do you need a degree to establish a private company? You don’t! Even though proper education prepares you for the realities of the business world, non-MBA startup founders learn from experience. We have examples of college dropouts who became the wealthiest people on earth.

At the same time, other billionaires finished college and leveraged their education to become extremely rich. So, it seems that – even though it isn’t a requirement – an MBA degree does brighten a person’s chances to excel in the realm of entrepreneurship. Thus, let’s discuss why education is valuable for business.

Do CEOs pursue an MBA degree?

Some internet commentators suggested that startup founders are almost exclusively college graduates with STEM degrees in the past decade. Even though these results get miscalculated, it’s correct that 25% to 38% of startup founders had a business administration background. There’s a mysterious connection between entrepreneurial accomplishments and an MBA degree acquired from a reputable institute. But what’s so special about business education? We’ll soon explain some remarkable benefits of an MBA.

But – before we discuss the significance of a master’s in business administration – let’s talk about some business tycoons who were business university graduates. As distance learning prevails, it isn’t difficult pursuing an online education anymore. You get access to digital lectures, and study material is provided online. Students can easily acquire an MBA with accounting concentration to gain excellence in financial management. Here are some well-known individuals whom MBA made successful as entrepreneurs:

1. Frank Batten: He established the country’s first nationwide weather channel christened meekly The Weather Channel three decades after receiving his MBA in 1952.
2. Matt Maloney: He founded the Chicago-based meal ordering platform in 2004 with his friend Mike Evans. They won Booth School’s New Venture Challenge in 2006.
3. Scott McNealy: He co-founded the computer technology organization Sun Microsystems in the ‘80s with his university alumnus Vinod Khosla after receiving an MBA degree.
4. Michael Bloomberg: The former Mayor of NYC got his MBA in 1966 and – fifteen years later – was fired from Salomon Brothers. This setback motivated him to establish Bloomberg LP.
5. Phil Knight: Counted among the world’s thirty wealthiest people, Knight pursued an MBA degree when he thought about selling running shoes – an ambition that later became Nike.
6. Sallie Krawcheck: She received her MBA in 1992 and, in 2014, launched Ellevest to help women find financial suggestions digitally. It took her over two decades to succeed as an entrepreneur.
7. Elon Musk: Lastly, the wealthiest guy on earth right now – who will hire you even if you never went to college – himself has two degrees. The founder of Tesla and SpaceX has a BA in physics and a BS in economics.

Reasons to acquire an MBA degree

Why did these seven individuals pursue an MBA degree? In 2015, Financial Times stated that around 84% of startups founded by MBA graduates were operational after three years. Statistics also show that 30% of startups fail after two years, while only 50% survive their third anniversary. It means that acquiring an MBA degree does help entrepreneurs keep their ships floating. Business administration gives you the skills required to establish and operate a functional company. Here’s why an MBA is vital for you:

1. You get hands-on experience in running a business independently.
2. An MBA helps you connect with people and create an extensive network of connections.
3. This degree will polish the management capabilities you require to supervise an organization.
4. Business administration allows you to understand the global market to expand your business overseas.
5. It improves your communication skills and makes you a better communicator to talk to clients, vendors, and employees effectively.
6. Not only communication skills but your other “soft skills” also transform. An MBA makes you an efficient problem-solver while bolstering your critical-thinking skills. You get a better grip on the teamwork abilities required to collaborate with your colleagues and employees.
7. Moreover, an MBA degree permits students to learn applied business courses. These courses will help you understand dealing with the harsh realities of the business world. You’ll read about organizational skills, business strategies, and tactics to invest at the right moment as well.

Conclusion

In 2017, Business Today reported that many startup founders pursued MBA degrees to polish their business acumen and enhance their financial expertise. These flourishing entrepreneurs have gone back to school for a singular purpose; gaining the requisite leadership capabilities. You might have heard the term “unicorn” used to describe startups that cross the billion-dollar valuation threshold. Experts found that 25% of unicorn startups had at least one founder with an MBA degree. It’s palpable that many CEOs succeed in their business ventures without any formal education. But academic learning can help people acquire the entrepreneurial qualifications they require to manage a booming company effectively.