Pros and Cons of Pursuing a Top MBA Program for Starting a Startup or Accelerator

As an entrepreneur with 4 years of experience as an employee at a startup, considering an MBA program might seem like a strategic move to enhance your skills and increase your chances of success. While an MBA can offer valuable advantages, it is essential to weigh the pros and cons before making a decision. This article discusses the strengths and weaknesses of pursuing an MBA if your goal is to start a new venture or work in a startup accelerator.

Pros of Pursuing an MBA Program

1. Network

One of the most significant benefits of a top-tier MBA program is the network it provides. This extends beyond your peers and includes alumni and faculty. During my second year of MBA at one of the top business schools in India, my network played a crucial role in launching my startup, Appknox.

Classmates, alumni, and faculty provided ongoing support and advice during the ideation phase. Faculty members acted as valuable mentors, offering guidance during challenging times. Post-graduation, maintaining these connections helped me secure early customers and gather valuable industry feedback.

2. Social Validation

People often have a small bias for those from top-tier schools, which can open doors for future teammates, investors, and partners. This social validation can be beneficial for gaining those crucial initial meetings and securing the backing needed to start a company.

3. Time to Shape Your Company

School provides a unique opportunity to start a company during a time when you have the support of a structured environment and a safety net. My experience at a startup in engineering school taught me the importance of this time when testing ideas, validating business models, and preparing for a full entrepreneurial venture.

4. Idea Generation

Enrolling in an MBA program can facilitate the generation of new startup ideas. Programs with high diversity bring a variety of perspectives and real-world challenges, some of which may be worth solving. During my MBA, I found that this diversity helped refine ideas and identify gaps in the market.

5. Co-Founder Hunting

Meeting co-founders is often a crucial part of starting a company. In my case, my co-founders came from engineering school, but I am confident that I would have welcomed business school peers for the same purpose. Many other startup founders also met their co-founders at school, highlighting the importance of these peer networks.

Cons of Pursuing an MBA Program

1. Costs

The cost of a top-tier MBA program can be financially crippling, especially for those planning to start a company. I advise against the large student debt burden, as it can severely impact early-stage entrepreneurial efforts.

2. Time Investment

A typical MBA program takes two years, which is a significant time investment. Starting a company and learning on the go during this period might be more cost-effective and potentially more rewarding, especially given that many skills can be learned through real-world experiences and failures.

3. Negative Social Impact Sometimes

Some tech entrepreneurs in places like Silicon Valley often dismiss MBAs, stating that they are either useful or worthless for startups. While MBAs train you to think objectively, this can be beneficial for large companies. However, many schools today offer innovative courses that can actually benefit aspiring entrepreneurs.

Ultimately, if you are determined to start a company, the value of every hour at the business school should be geared towards moving your startup forward. Good luck!