An entrepreneur is a person who takes financial risks in the hope of making profits while creating their own business or businesses. As simple as it sounds, being an entrepreneur is something that requires immense dedication, hard work, and the will to persevere even through hard times.
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When it comes to setting up your own business, only having a strong will or determination is not enough. It is also essential to have the right knowledge and skills to take upon this endeavour. The best way to garner this knowledge and wisdom is through the right business school.
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Now, it is true that there are hundreds of examples of people setting up their own business without going to fancy business schools and having significant degrees. Of course, indeed, they are still unbeaten and good at what they do. However, when it comes down to it, it is essential to keep in mind that excellent business skills and business acumen are something that is acquired over time.
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Dr John Yang, who is the dean of the Beijing International MBA program, situated in Beijing University, says something fascinating about entrepreneurship.
He says that it is a matter of both the heart and the brain. While entrepreneurship is a matter of the heart, education is a matter of the brain. Of course, it is much more challenging to teach the heart, but not so much for the brain.
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What we can understand by this statement is that although entrepreneurship requires a person to have a determined heart towards achieving their goals, education can help propel them towards this goal, giving them the right set of tools and skills to acquire it.
Do You Need an MBA for Entrepreneurship?
Well, yes and no. You don’t need to go to a big business school and do an MBA course to become an entrepreneur. However, it can give you a great skill set which can help you in managing the small as well as large details of your business.
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Here is how an MBA degree can help you become an entrepreneur:
It Teaches You Risk Management
If you look into the definition of an entrepreneur, it is someone who is not averse to taking risks. We already know that each individual is different in their personality and attitude.
Some people are just innately more risk-taking and those who are not. More often than not, entrepreneurs are the risk-takers- the ones who are not afraid to take significant risks and sometimes even do so on impulse.
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This is where education would help. Although it is great to take risks when it comes to your business, taking silly risks would end up in irrecoverable losses. A business education would teach you more about risks, gains, profits, and losses. It would show you how you can learn to manage risks, and how to take risks smartly so that you gain more from your endeavour.
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A good business education could also empower you to make ‘risker’ choices. How does this happen?
Well, once you understand the concepts and principles of business, stocks, and shares, you will be able to make more an educated decision and make ‘riskier’ decisions if it can help you gain more at the end of it.
It Helps You Learn Valuable Lessons Early On
Many of us know of success stories of entrepreneurs who manage to create and run a successful company without any formal business school education. We hear of their struggles, their experiences, their intense moments of loss, grief, and crisis. We also learn that they eventually fight their way out of it with enough dedication.
What we sometimes fail to see is that a lot of these crises can be avoided if you know a business, strategies, management, marketing, and finance. The entrepreneurs faced immense struggles for maybe years on end, before they fought their way upwards again.
However, having adequate knowledge of how to handle and manage these situations could help them avoid the intense struggle and cope up better.
These valuable lessons that the entrepreneurs often learn through experience and failing, you can learn of them early on in the business school. Once you equip yourself with the knowledge, the skills, and the tools, you will be able to manage such situations and even crisis in a better way.
You Learn More by Studying Case Studies of Other Companies
One of the best parts of getting a formal business education is that you get to learn a lot by studying the different case studies of other companies over the years. Case studies are a vital and efficient tool for understanding a lot of difficult concepts.
By going through the history of other companies, the steps that they take, their progress, and going over their mistakes, you can learn more about risk-taking and losses.
These case studies also help you garner wisdom from the experiences of other companies, and you can understand how similar situations might apply to your own company. If they do, anytime in the future, you will already have the knowledge and skills to overcome the situation.
Understanding More about Human Resources
A good company depends upon the kind of people who you employ to work for you. Of course, you cannot possibly know right off the bat how you should employ efficient incentive systems, support systems, bonuses, a salary structure, and even dealing with various human resource problems.
This is one of the most important things that a business school will teach you. You will understand the value of a healthy human resources team as well as the importance of a sound incentive system for your employees.
The happier your employees are, the more productive and loyal they will be towards your company. This is an essential skill that many entrepreneurs dismiss early on, only to understand the value of it much later in their business.
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Again, it is not compulsory to opt for an MBA if you want to become an entrepreneur. However, if you equip yourself with these skills and knowledge, it can only help you make your company grow at a more stable rate with more success.