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02:01 BST, September 19, 2024Recent insights from INSEAD highlight that obtaining an MBA can significantly boost an entrepreneur’s chances of success.
While some prominent business leaders have questioned the necessity of an MBA for start-up success, findings from the INSEAD Alumni Entrepreneurship Report 2024 suggest otherwise.
The survey results reveal that many who pursue an MBA are more likely to launch impactful, long-lasting ventures.
According to the report, 73% of INSEAD students and graduates became involved in entrepreneurship after completing their MBA. Remarkably, over 17% of these ventures have grown into large-scale businesses, employing more than 100 people.
For those alumni who chose to take over existing businesses, results were equally impressive. Nearly 30% of these individuals achieved growth rates of 11% or more in their first year, demonstrating the positive influence of an MBA on business performance.
MBAs and Innovation
Contrary to the belief that formal education may hinder entrepreneurial thinking, the report shows that an MBA can actually fuel the drive to innovate.
Of the respondents, 86% initiated new ventures or contributed to corporate entrepreneurship either during or shortly after their time at INSEAD.
On average, each graduate has founded approximately 3.5 businesses, highlighting the continuous entrepreneurial spirit fostered by the program.
Image created by Market Business News.
Great for Existing Entrepreneurs Too
Interestingly, the benefits of an MBA extend beyond first-time entrepreneurs. According to INSEAD’s Alumni Entrepreneurship Report 2024, forty-three percent of recent INSEAD graduates were already entrepreneurs before enrolling.
These individuals, having firsthand experience with the challenges of running a start-up, saw the value in furthering their education to sharpen their skills and gain deeper insights into managing and growing their businesses.
Professor Henrich Greve, the Academic Director of the Rudolf and Valerie Maag INSEAD Centre for Entrepreneurship, emphasized the broad entrepreneurial impact of the school’s alumni. According to him, they are not only creating new businesses but also revitalizing older firms, thus contributing to economic growth and job creation.
Whether founding new ventures or acquiring existing businesses, INSEAD alumni are demonstrating the effectiveness of their education in real-world applications.
Social Missions in Businesses
One notable trend is the rising incorporation of social missions in businesses started by recent graduates.
Around 33% of ventures founded in the last 15 years have a social mission, compared to only 15% of businesses launched over three decades ago. While profitability remains a priority, the growing focus on sustainability, healthcare, and other socially driven objectives highlights the evolving nature of entrepreneurship.
Acquisitions post-MBA
Moreover, a significant portion of alumni has ventured into business acquisitions post-graduation. Impressively, almost half of these acquisitions saw revenue growth of over 11% in the first year, with 80% still operational today, indicating a high level of success.
INSEAD Dean Francisco Veloso noted,
“These findings reinforce the value of a business education in equipping entrepreneurs with the necessary tools to navigate today’s unpredictable business landscape.”
This report underscores the vital role that an MBA can play in empowering entrepreneurs to succeed and adapt in an ever-changing world.
A Brief Overview of MBAs
An MBA is a postgraduate qualification designed to equip students with essential skills for effectively managing or operating a business. The program combines theoretical knowledge with practical experience to enhance decision-making abilities. Additionally, it provides students with a deeper insight into various business functions and how they interrelate, helping them to approach management with a more comprehensive perspective.
The letters MBA usually stand for Master of Business Administration, but some colleges refer to it as Masters in Business Administration.
Top MBA schools in six countries
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United States
Stanford Graduate School of Business
Wharton School, University of Pennsylvania
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United Kingdom
London Business School
University of Oxford, Saïd Business School
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Canada
Rotman School of Management, University of Toronto
Ivey Business School, Western University
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France
INSEAD
HEC Paris
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Japan
Hitotsubashi University Business School
Keio Business School
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Australia
Melbourne Business School
Australian Graduate School of Management