
Is an MBA worth it? - socialgoodkvp
http://www.kylevanpelt.com/mba/
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nostrademons
This depends heavily on field. My girlfriend (who works in philanthropy) is
getting one. I (as an entrepreneur) wouldn't touch it, other than to read her
textbooks and homework assignments.

It's most useful when your field is heavily credentialed. HN tends to attract
folks who look down on credentials and like to believe they'll succeed on
merit, but the reality is that every success happens because somebody else
believes you can do a job well, and in many fields, that somebody relies on
very imperfect information. In philanthropy, for example, not having an MBA is
basically a hard blocker for ever reaching a leadership position, because your
job is to _convince rich people you can deploy their money effectively_. Many
of her classmates are in middle-management positions at big companies, and
advancement there is similarly restricted to those with credentials. I've
heard that strategy consulting basically requires an MBA beyond the Associate
level, because again, you are selling your perceived expertise to the client.

As an entrepeneur, though? I doubt it. I look at my girlfriend's coursework
and the homework assumes you have 10x the information and 100x the resources
that you actually have as a startup founder.

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xiaoma
>"In philanthropy, for example, not having an MBA is basically a hard blocker
for ever reaching a leadership position"

Does Bill Gates have an MBA?

I think he's doing well asking rich people for their money. Maybe not having
an MBA isn't a hard blocker if you can show yourself to be exceptional in one
way or another. Bill Gates is just one particularly famous example. There are
many other non-MBA holding
philanthropists—[http://en.wikipedia.org/wiki/List_of_philanthropists](http://en.wikipedia.org/wiki/List_of_philanthropists)

~~~
xiaoma
Wow, people on HN have gotten a lot nastier about moderating since I joined.

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s4sharpie
Very interesting perspective on the value of a MBA: specifically as a path to
be an entrepreneur. Traditionally (say 20 years ago) much of the MBA was
focussed on specific career paths: Investment Banking, Strategic Consulting,
and Large Corporate Management Track.

I completed my MBA in 2006 while my school was shifting itself from the
traditional aspects above to include a more entrepreneurial focus. If you
asked me at that stage for a budding tech entrepreneur is there value in an
MBA, the answer would mirror the position of the writer.

However, some schools have made significant strides in developing their
programs and themselves to support entrepreneurs (or people who want to pursue
that pass). I have been stunned in the way some schools now offer almost
entire programs around entrepreneurship. Is that enough to overcome the cost?

I don't have an answer for that, but here are my thoughts: 1\. Many, if not
all of these programs, now have incubators/competitions as a part of the
program with significant seed funding available 2\. Similarly, many schools
have developed networks with local VCs getting that initial access to funding
and offer amazing access to coaching and angel investors 3\. Maybe a little
esoteric, but that 100k might give you that one piece of credibility/analysis
etc that gets you that first round of funding, or helps you avoid that one
mistake that could jeopardise you business and/or any funding you needed to
keep your business running.

This is not an easy choice, but increasingly, some MBA programs do offer a LOT
of value for the $100k

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Retric
The opertunity cost of 100k and ~2 years of effort is easily your first
startup. Sure, it might be worth it but you can also get the coursework /
books for far less than 100k.

~~~
s4sharpie
I completely agree that 100k is a very steep price for the coursework/books.
If that is all you aim to get out of a MBA, you will not get value from the
MBA.

It is now everything else besides the coursework/books and framework of
teaching that is now valuable for a budding entrepreneur: access to additional
funding, VCs, and a structure to support you.

Indeed, and I may have been remiss in mentioning this before, for an
entrepreneur, some MBA programs provide a very safe opportunity to pursue your
initial idea. You have two years with a large amount of unstructured time,
amazing resources (including funding) and typically a strong financial support
network (feed, house, cloth you). At the end of your two years you can have
built either a successful initial idea or indeed cycle through 2 or 3 ideas.
And at the end? If you haven't made it, you will have a strong position to re-
enter the workforce - with some great stories to tell.

That a MBA is purely coursework/books is very myopic.

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hacknat
You really do need to look at what you're getting in return from a degree. As
far as I can see there are only three things an MBA (or any degree, really)
can give you: knowledge, a network, and high pedigree within the area you want
to succeed. I would argue that you want at least two, ideally three of these
factors present. Let's break it down:

1\. Knowledge. Do you think the knowledge you'll be gaining in the program
will be worthwhile to you immediately, in the long term, etc? What is the
knowledge you want vs what you'll be getting, do they overlap enough (for
example, most traditional MBAs don't focus on the problems that most start ups
run into at first)? Is the knowledge your getting something you couldn't
easily get on your own (for example is there a great professor from whom you
want to learn, specialized knowledge that really requires classroom
instruction, or is your learning style more suited to classroom instruction)?

2\. Network. Is the network that is traditionally associate with the program a
network that you want to be part of? Are many of them even in the field(s) you
want to be in (linkedin has a good tool for this)? Is the network known to
even be useful? Does the network include powerful people in the area of
business you want to enter? Does the school leverage its network (i.e. do
professors try to get internships at organizations, get important alumni to
speak, etc)?

3\. High pedigree. This one's pretty self explanatory. In the field you want
to enter, will simply having a degree from this program open doors for you?

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amorphid
An MBA is worth it is you know what you'll get out of it. A Harvard MBA has a
very real chance of turning into that job at Goldman Sachs you always wanted.
An MBA from a school that's unknown more than 50 kilometers from campus offers
you little no competitive advantage. I got an MBA at a not shitty school,
borrowed money to do it, and have regretted it ever since.

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georgeecollins
I have an MBA (USC '95). It is hard to say it wasn't worth it because I had a
fellowship. Loved the people, loved the school. It helped me switch careers to
one I have loved.

But do I think it would be worth it now, even if it were free? Probably not.
You can accomplish a lot in two years of working.

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bjchrist
Disclaimer: I haven't taken a MBA, so I don't have any personal experience
with the program.

Personally, I wouldn't take any education, unless I was passionate about it,
regardless of the demand in the job offers. Follow your heart ;-)

