Before I was accepted at my graduate school, I went to b-school open houses within the area. One school surprised me, and not in a good way. I found out the school offers a dual MD/MBA degree. I can only assume the program caters to entrepreneurial doctors, and hopefully not doctor's who may want to manage an office. The school had an interesting program that allowed students to create a business from university research.
An alumni came in and discussed his project and what he currently works on. He actually told me his other group member was a medical doctor who was getting completing the MBA program. I asked him why would he want to do that, and the alumni stated the doctor wanted to start his own medical office. I was confused, because not every entrepreneur should invest in a Master of Business Administration.
Based on information found at the Small Business Association Office of Advocacy, small businesses make up 99.7 percent of all employer firms. To enumerate, small businesses total an estimate of 29.6 million businesses. For those not quite sure what constitutes a small business, any firm with fewer than 500 employees. On a side note, micro-businesses are firms with fewer than 5 employees.
Why the numbers? I shall get to that in a moment.
With new businesses emerging annually, many close its doors or file for bankruptcy. In total, based on Census data, a little more than half of all new employer establishments have survived five or more years.
With these numbers, should small business owners invest in a graduate degree? The answer is no. The United States is a country of entrepreneurship and invention. Business leaders have come into existence without having much of an educational background let alone an educational background in business.
Investing in a Master of Business Administration:
COST
The average cost for a full-time MBA program in Chicago is $39,580, and can range from $16,920 to $102,990. The cost does not take into consideration associated costs for the programs such as fees, textbooks, transportation and others. Based on price alone, a program may not be worth the investment for a person creating a start-up.
TIME
A person would have to dedicate about two years into an average full-time MBA program. If going through a part-time or executive tract, the person would have to dedicate close to three or more years. The programs tend to be very demanding and some programs have large amounts of course material to cover and submit. This being said, someone working 40+ hours would have to schedule another 20-30+ hours into the week or weekend to meet the demand for the programs.
B-SCHOOL ACCREDITATION
Any person looking into a business degree should ask about school accreditation. If the school is not accredited by a governing body, mostly the government, then the degree is invalid. The top business schools have an AACSB Accreditation. What does that mean? The accreditation reflects business theory, the amount of persons completing the program, the rate of recently graduated getting hired, the amount of scholarly work produced by faculty, and so on. Does this mean every person should go only apply to an AACSB school? Probably not. Just depends on how you learn (preferences) and what you want to learn. Having gone to two b-schools with an AACSB accreditation, there is are no tangible benefit besides the degree.
BACKGROUND/EXPERIENCE
If a person wants to create a business, the process is rather easy. Would it help to have a background in business? No, not really. Resources are abundant for creating a business in the United States. Many of these resources are free or at a nominal fee. Entrepreneurs can check out the Small Business Development Center to gain key insights from educators and market leaders. If the person is lucky, the newly formed start-up could be selected to participate in a business incubation center. If the entrepreneur does not know where to start, the Internet and local bookstores have a plethora of information on business formation and entrepreneurship. For the most part, b-schools do not really help entrepreneurs focus on their business but instead focus on a wide range of business theory and applications.
NETWORKING
Business schools are notorious for capitalizing on this word. For the most part, as a student, there is little to no chance to network with people in the industry. The best way to network would be to join a professional association or local chamber of commerce. There is a whole new set of resources available by joining a professional association or local chamber. Members have access to databases and events that would lead to networking opportunities not regularly found by being a student at a b-school.
Back with the previous b-school and the doctors getting a MBA or pre-meds wasting time on another degree. With the time, money and energy invested in a Master of Business Administration, the business could have had the investment capital needed for a successful thriving venture. By not getting the degree, you can put close to $40,000 to your start-up. With the Small Business Development Center and Business Incubators, there really is not a need to go through with another program. In all, I would have suggested that the doctor stop fooling around and open his office. There is plenty of things to do and getting a b-degree is not on the short list.
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