How does an MBA empower entrepreneurs?
An MBA has often been a debated investment for aspiring entrepreneurs, but recent findings challenge skeptics.
An INSEAD survey reveals how an MBA enhances entrepreneurial success, fostering innovation, growth, and a shift toward social impact in new ventures. (CREDIT: Research.com)
An MBA has often been a debated investment for aspiring entrepreneurs, but recent findings challenge skeptics. The INSEAD Alumni Entrepreneurship Report 2024 reveals that an MBA can significantly boost entrepreneurial impact and long-term success.
Whether launching new ventures or acquiring established businesses, graduates of INSEAD—a global business school—are achieving impressive results, showcasing how education can sharpen entrepreneurial skills and foster innovation.
Contrary to the perception that MBAs might stifle creativity, the report indicates the opposite. A striking 73 percent of surveyed INSEAD alumni pursued entrepreneurial activities after completing their education.
Even seasoned entrepreneurs sought the program, with 43 percent of recent graduates already having entrepreneurial experience before enrolling. Their rationale was clear: an MBA offers advanced tools and frameworks to tackle challenges more effectively, improving their business strategies.
Professor Henrich Greve, Academic Director of INSEAD’s entrepreneurship center, highlights this success: “Our survey shows that INSEAD alumni are accomplished entrepreneurs across the board. They are forming new ventures and improving old ones. Through that, they’re creating growth, value, and added employment both in their own ventures and in family businesses and traditional corporations.”
(CREDIT: INSEAD)
Measurable Outcomes and Growth
The numbers tell a compelling story. Nearly 17 percent of INSEAD alumni ventures have scaled to employ more than 100 individuals. When alumni take over existing firms, 30 percent achieve over 11 percent growth in revenue during their first year. This ability to transform existing businesses underscores the program’s focus on practical, impactful education.
Furthermore, INSEAD alumni are prolific in their ventures. On average, each graduate has initiated 3.5 ventures, with two-thirds exploring multiple entrepreneurial paths. This frequency reflects their confidence in applying their MBA-acquired knowledge to diverse industries and challenges.
A notable shift in recent years is the growing emphasis on social missions among new ventures. According to the report, 33 percent of businesses launched in the past 15 years incorporate a social mission, compared to just 15 percent of those founded over three decades ago.
Fields such as sustainability and healthcare dominate these socially-conscious initiatives, marking a significant change in entrepreneurial priorities.
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Profitability remains essential, but the alignment of profit and purpose signals a new era for entrepreneurship. Graduates are not only building businesses—they are shaping industries to address critical global issues.
The Value of Acquisition Strategies
Acquisitions also stand out as a favored strategy among INSEAD graduates, with 25 percent engaging in this approach post-graduation.
Of these acquisitions, nearly half saw revenue growth exceeding 11 percent in their first year, while 80 percent are still active today. This success reflects the graduates’ ability to identify opportunities, revitalize existing firms, and sustain long-term profitability.
Education at INSEAD prepares students not just to innovate but also to adapt. This adaptability extends to corporate entrepreneurship, with 86 percent of corporate projects and 75 percent of start-ups initiated during or after completing the program.
The INSEAD report underscores the transformative potential of an MBA for entrepreneurs. It equips them with strategic thinking, financial acumen, and a network of like-minded peers, enhancing their chances of success in a competitive landscape.
As Professor Greve emphasizes, INSEAD alumni contribute to growth and innovation across industries, creating value that resonates far beyond their ventures.
Whether you're an aspiring founder or an experienced entrepreneur, the data suggests that investing in an MBA can be a pivotal step toward realizing your entrepreneurial ambitions.
Education not only enriches the individual but also empowers them to make a lasting impact.
Note: Materials provided above by The Brighter Side of News. Content may be edited for style and length.
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