With the cost of higher education on the rise both in the UK and internationally, a growing number of would-be executives and entrepreneurs are questioning the value of an MBA – one of the business world’s most prestigious qualifications.
High-end colleges in the United States charge MBA students as much as $100,000 for two years of tuition. For the better part of a century, the skills acquired as part of an MBA course have been celebrated and valued as unique and difficult to replicate.
Several UK-based firms can testify to the value of an MBA, both amongst their own staff and for external consultants. V7, a design agency based in Dublin, worked with a consultant with an MBA in order to manage rapid growth of its client base.
The advice offered by the consultant allowed the firm to spot issues with its revenue model and missed opportunities, as well as optimising its management tactics to get more from its 12 employees.
Despite the success of MBA training for some, others in the business world believe it simply isn’t worth the money to pursue an MBA. Brenden Mulligan, an entrepreneur based in San Francisco, dropped out of his MBA course due to the expense.
He, like many others, believes that first-hand experience is the best substitute for an advanced qualification, and that people considering an MBA should first work in the industry, either as an internship or as an employee at a growing start-up.
Well-known angel investor Peter Thiel, who was one of the first investors in social networking company Facebook, shares his feelings. He recently paid students over $100,000 each to ‘drop out’ of college in order to start their own businesses.
The entrepreneur suggested that students use the money they received to start their own companies and pursue their goals privately, rather than depending on MBAs or other qualifications as an ‘in’ to the business world.
