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MBA not a yardstick to judge entrepreneurs
By
siliconindia news bureau
New Delhi: For last some months, there has been a debate on whether an MBA degree is needed to shine in any business. The story of an investment broker Anvar Hajibhai Heranja is disputing the need of an MBA to do a successful business. Heranja, 24, from Rajkot is a school drop-out. After 10th standard, he could not pursue the education due to financial constraints in the family. He joined his cousin's trading business and worked there for three years.
After learning a lot about the business, Heranja launched JD Investments, a stock broking, investment and trading firm, which has garnered 148 loyal clients over the past one year. "I understood basic numbers and that was enough for me. One only has to have interest-education doesn't really matter," Heranja says.
Now, as one of the shortlisted entries -a proposal on Shariah complaint investments- Heranja is looking forward to guidance in the Power of Ideas mentoring sessions. Out of the 1,000 shortlisted participants in the Economic Times Power of Ideas contest, a majority (56 percent) of the entrepreneurs come with no professional qualification. Of these, 40 percent have a graduate degree or less.
Heranja's experience proves that enterprise isn't the preserve of those who went through formal educational training. For the majority of others, it was a combination of courage, an appetite for learning, and sheer hard work that helped them achieve what they have today.
Gautam Adani, the owner of Adani Group, is also a success story sans MBA. In the early '80s Adani, a matriculate from a Gujarati-medium school, went to Mumbai where he started working in a diamond-processing unit and steadily made his way up, eventually running his own businesses.
Today, he lords over the approximately Rs 24,000 crore Adani Group spanning industries such as edible oil, coal mining and trading, power, oil and gas exploration, export and import of pulses and fruits, and port development.
Many actually believe missing out on professional education was good for them. Naren Parasuram is an apt example. After finishing school, he applied at an engineering college but when he was declined his choice of stream, he chose to quit. In 1986, Parasuram started an outdoor advertising business with technologies that were new at that time and continued in the business till a few years ago. Today he drives around in a Porsche and has been developing a unique low-cost innovation in rural housing, which is among the 1,000 shortlisted ideas.
After learning a lot about the business, Heranja launched JD Investments, a stock broking, investment and trading firm, which has garnered 148 loyal clients over the past one year. "I understood basic numbers and that was enough for me. One only has to have interest-education doesn't really matter," Heranja says.
Now, as one of the shortlisted entries -a proposal on Shariah complaint investments- Heranja is looking forward to guidance in the Power of Ideas mentoring sessions. Out of the 1,000 shortlisted participants in the Economic Times Power of Ideas contest, a majority (56 percent) of the entrepreneurs come with no professional qualification. Of these, 40 percent have a graduate degree or less.
Heranja's experience proves that enterprise isn't the preserve of those who went through formal educational training. For the majority of others, it was a combination of courage, an appetite for learning, and sheer hard work that helped them achieve what they have today.
Gautam Adani, the owner of Adani Group, is also a success story sans MBA. In the early '80s Adani, a matriculate from a Gujarati-medium school, went to Mumbai where he started working in a diamond-processing unit and steadily made his way up, eventually running his own businesses.
Today, he lords over the approximately Rs 24,000 crore Adani Group spanning industries such as edible oil, coal mining and trading, power, oil and gas exploration, export and import of pulses and fruits, and port development.
Many actually believe missing out on professional education was good for them. Naren Parasuram is an apt example. After finishing school, he applied at an engineering college but when he was declined his choice of stream, he chose to quit. In 1986, Parasuram started an outdoor advertising business with technologies that were new at that time and continued in the business till a few years ago. Today he drives around in a Porsche and has been developing a unique low-cost innovation in rural housing, which is among the 1,000 shortlisted ideas.
Reader's comments(27)
1: The above article implicitly states something
that is the true foundation of Business
Management.
Its true that an MBA from a really good college might provide you the correct pedestal for venturing into a growing business, but it does not guarantee your success once you step into the corporate world.
The biggest example being the current Economic recession going on in the world.
One you\'re up there, the only things that keep you up there are (a) your intelligence (b) your capacity to work hard (c)your integrity and (d) patience.
And those, my friends, are somethings that can only be self-taught... there is no education in the world that can teach you that. That\'s my opinion.
Its true that an MBA from a really good college might provide you the correct pedestal for venturing into a growing business, but it does not guarantee your success once you step into the corporate world.
The biggest example being the current Economic recession going on in the world.
One you\'re up there, the only things that keep you up there are (a) your intelligence (b) your capacity to work hard (c)your integrity and (d) patience.
And those, my friends, are somethings that can only be self-taught... there is no education in the world that can teach you that. That\'s my opinion.
Posted by: Abhi G - 08 Apr, 2009
2: In my opinion, people who engage in such
bogus debates as to whether an MBA is needed
to shine in business, do not have the akkal
to succeed either.
An MBA simply provides some tools and problem solving techniques that should enhance an individual\'s basic common sense. If a person does not have a basic 8th. Grade-level common sense, NO COLLEGE DEGREE is going to help.
Of course an MBA is not a prequisite for success, not only as an entrepreneur, but also in bureaucratic and structured major corporations. We saw this recently because almost every individual responsible for the absurd and economically flawed lending practices at the Big Banks that contributed to the current financial crisis were MBA\'s from the Ivy League schools, or from Chicago or Berkeley or Stanford or MIT.
There are some 8,000 banks in the USA, and only a small handful engaged in such absurd business practices and are now lining up to be bailed out. The others are doing fine, and probably have MBAs and non-MBAs from smaller schools who use common sense to enhance whatever they do.
An MBA simply provides some tools and problem solving techniques that should enhance an individual\'s basic common sense. If a person does not have a basic 8th. Grade-level common sense, NO COLLEGE DEGREE is going to help.
Of course an MBA is not a prequisite for success, not only as an entrepreneur, but also in bureaucratic and structured major corporations. We saw this recently because almost every individual responsible for the absurd and economically flawed lending practices at the Big Banks that contributed to the current financial crisis were MBA\'s from the Ivy League schools, or from Chicago or Berkeley or Stanford or MIT.
There are some 8,000 banks in the USA, and only a small handful engaged in such absurd business practices and are now lining up to be bailed out. The others are doing fine, and probably have MBAs and non-MBAs from smaller schools who use common sense to enhance whatever they do.
Posted by: Mario Goveia - 07 Apr, 2009
3:you are very correct. Most MBA's are just
book worms.I was in marketing field for 20
Yrs and I have seen Candidates joined my
company which is a MNC and they have done
nothing nor contributed big to success of the
company.They are only for Money.50% of the
TOP MBA students are just as good as Non
MBA's or say no better than them. I have seen
Non MBA's are much more Practical than some
of these stupid people.
Jayasankar replied to: Mario Goveia
post - 10 Apr, 2009
post - 10 Apr, 2009
4:Thank God, ppl atlast understood this
otherwise management always give bias
approach while promoting ppl in their
organisation. They should analyse them by
their work and not by their educational
qualification. Non MBA can also perform
better than MBA.
Usha replied to: Mario Goveia
post - 07 Apr, 2009
post - 07 Apr, 2009
6: These are wonderful stories. It is true MBA
is not mandatory for entrepreneurs. I am not
saying not required, I am saying not
mandatory. There are guys who very successful
without MBA. Infact if we see in India most
of the families running family business, they
don’t have MBAs in their family, they
are very successful and they are doing what
they want to do.
There is difference in running corporate business and family business. For any sustainable profitable business good decision, vision and proper execution of plans is necessary. And for proper execution if we have guys who are sincere, hardworking and with relevant experience is always preffered than others. These are qualities which are required and a candidate can have without MBA. If you have MBA these qualities can be learned by means of formal education.
There is difference in running corporate business and family business. For any sustainable profitable business good decision, vision and proper execution of plans is necessary. And for proper execution if we have guys who are sincere, hardworking and with relevant experience is always preffered than others. These are qualities which are required and a candidate can have without MBA. If you have MBA these qualities can be learned by means of formal education.
Posted by: Pramod dubey - 07 Apr, 2009
7:Pramod
I fully agree with you that MBA is not mandatory. What one really needs to have is the Essence Of Leadership. a - The focus to acheive b - Mobilize to impact c - The desire to sustain the momentum and lastly The Passion for Excellence.
These above mentioned four qualities is what one needs to be a leader for it has been said that a good leader leads and the rest follow.....
I fully agree with you that MBA is not mandatory. What one really needs to have is the Essence Of Leadership. a - The focus to acheive b - Mobilize to impact c - The desire to sustain the momentum and lastly The Passion for Excellence.
These above mentioned four qualities is what one needs to be a leader for it has been said that a good leader leads and the rest follow.....
Rolando Gomez replied to: Pramod dubey
post - 07 Apr, 2009
post - 07 Apr, 2009
8: The day on which corporate houses realizes,
that to hire a personnel means:that they
should have series of close interaction and
evaluation for a specific role designate to
select brains, That day the industry will
flourish and grow. They must stop insisting
any kind of tags or specific
qualifications.If they have set definitions
and conditioned models, they invariably take
very high risks, which may prove disastrous.
I have come across no good MBA'S, Who have
joined companies and got sacked for their
incapability.There is a vast community of
people , who are experts in their fields with
business acumen, who have no chance at all as
against MBA'S- in our poor market.It is
pathetic and degrading.Directors must
intervene and evaluate intelligent people
with both IQ & EQ'S.I have very strong
assertions and belief that a CEO- can be
selected not by qualifications, but a very
careful inquest of minds,attitudes,
perceptions,and reading his career dreams,his
vision,mission and approach- is what matters
to an organization.
Posted by: Subramanya rama rao - 07 Apr, 2009
9: I agree with the context of this article. In
today's scenario MBA degree has just become a
way to penetrate in one of the global gaint
organization and hence running in race of
getting secure and handsome package job. Its
only interest and dedication that actually
brings the inside one out.
Posted by: Pankaj Nayyar - 07 Apr, 2009
10: Some of the people who have replied to this
post cant construct a simple statement on
their own... anyways.
I agree with the post being an Entreprenuer myself. There are advantages of doing an MBA though, especially if you are doing it from a reputed college, as the network you build in your formative years helps you when you start your own venture.
I agree with the post being an Entreprenuer myself. There are advantages of doing an MBA though, especially if you are doing it from a reputed college, as the network you build in your formative years helps you when you start your own venture.
Posted by: Nilesh Sane - 07 Apr, 2009
11: I am not fully agree with the comment as MBA
gives a better and structured way to think
and implement an idea,but of course idea can
not be generated through MBA and it depends
upon the person's own thinking which no one
can snatch.
Posted by: Arvind - 07 Apr, 2009
12:The problem is precisely that the structured
thinking taught at B-Schools encourage rote
thinking, distrust of the unknown, too much
faith on formula and following trends with an
accompanying loss of internal compasses -
moral, ethical, risk.
Consider this - less than 30% of MBAs from Harvard ever become a CEO. Out of that 90% (I.e. About 3% of the total) actually ever start something new and entrepreneurial.the majority are hired CEOs. For the people who hire them it is like the old idea - "One never gets fired for buying IBM". Safety - not safe!
There is nothing wrong in studying how business runs - so long as one doesn't think that they learned how to run a business - which is all about common sense, ethics, risk management, and set high ambitious goals thatare fun to to achieve
Consider this - less than 30% of MBAs from Harvard ever become a CEO. Out of that 90% (I.e. About 3% of the total) actually ever start something new and entrepreneurial.the majority are hired CEOs. For the people who hire them it is like the old idea - "One never gets fired for buying IBM". Safety - not safe!
There is nothing wrong in studying how business runs - so long as one doesn't think that they learned how to run a business - which is all about common sense, ethics, risk management, and set high ambitious goals thatare fun to to achieve
suresh replied to: Arvind
post - 07 Apr, 2009
post - 07 Apr, 2009
13: true. therefore what best i can make out of
the comments given here is that a MBA is a
gateway to become an obedient servant or at
best a slave, but not an entrepreneur.
Posted by: biswa - 07 Apr, 2009
15: no certificate can measure one's potential
abilities or talent. And those can't
understand this, will ask for one's
certificate.. :D
Posted by: Prasad C - 07 Apr, 2009
16: MBA is not a mandatory certificate to be
successful business man or business head.
This only helps to build the business fast
and in multiple directions.
But same success can be achived by dedication and study the nature of business and your plans to grow. If you have proper plan, required dedication, motive, you will grow and at time faster than MBA.
Without MBA, you can run your own business, with MBA you can run others business as they will trust you more. :-)
But same success can be achived by dedication and study the nature of business and your plans to grow. If you have proper plan, required dedication, motive, you will grow and at time faster than MBA.
Without MBA, you can run your own business, with MBA you can run others business as they will trust you more. :-)
Posted by: atul - 06 Apr, 2009
17: Yes, the fact is correct that you dont need
to be an MBA for being an entrepreneur but
when it comes to hiring a manager the same
prefers a MBA handling the job this is the
present diabolical situation of this
country........
Posted by: Amarto - 06 Apr, 2009
18: Fact
No need to be a MBA for being a entrepreneur like Dhirubhai Ambani but even the lower level manager working in his firm has to be a MBA studied personel.
No need to be a MBA for being a entrepreneur like Dhirubhai Ambani but even the lower level manager working in his firm has to be a MBA studied personel.
Posted by: Inderjit - 06 Apr, 2009
19: No need of an MBA.......Needs only some
common sense and the capability to smile at
the right time.
Do you think, whether Dhirubhai Ambani had an MBA....never. He built his empire using common sense,creativity, innovations and faith in Almighty........
Do you think, whether Dhirubhai Ambani had an MBA....never. He built his empire using common sense,creativity, innovations and faith in Almighty........
Posted by: Joseph Peter - 06 Apr, 2009
20: I guess the whole story becomes irrelevant if
we clearly understand that Education and
intelligence are two different activities.
Education will not increase your
intelligence...it would only increase your
knowledge.
When you start applying your knowledge into the real world your intelligence plays a major role.
Education is not the only means to acquire a Knowledge.
Knowledge can be acquired through work/experience, self learning etc.
Intelligence... can it be acquired? Yes, but we have to acquire along with the brain. You acquire the person who is intelligent. Thus Knowledge can be shared. Intelligence sharing will have greater risk.
When you start applying your knowledge into the real world your intelligence plays a major role.
Education is not the only means to acquire a Knowledge.
Knowledge can be acquired through work/experience, self learning etc.
Intelligence... can it be acquired? Yes, but we have to acquire along with the brain. You acquire the person who is intelligent. Thus Knowledge can be shared. Intelligence sharing will have greater risk.
Posted by: Sanjeevi - 06 Apr, 2009
22:enterpreneuship is a quality which only less
than 5% of the international population have.
getting into businees out of compulsion and
occassionlayy being successful is different
from opting to start an industry, sustaining
it against all odds and then becoming
successful. Here intelligence, EQ and
communication skill play very important role.
Intelligence unlike knowledge as rightly said
cannot be cultivated. Knowledge +
Intelligence=wisdom
suresh replied to: Sanjeevi
post - 07 Apr, 2009
post - 07 Apr, 2009
23: That's right... a mere mba can never ensure
the capability of an executive.. check the
most successful people in the world and see
among them how many has an MBA.. does bill
gates, azim premzi, lakshmi mittal etc etc
has mba?
Posted by: manas - 06 Apr, 2009
24: It is not the degree deciding the value of a
person, the ability to manage things and take
right decisions are important.
Posted by: Ahuja Singh - 06 Apr, 2009
25:There has been a hue and cry all over the
country against the kind of spoon feeding
education our kids are going through. This
revelation should be a motivation factor for
changing our educational system.
Ravi Chandra replied to: Ahuja Singh
post - 07 Apr, 2009
post - 07 Apr, 2009
26:After the economic disasters and frauds
perpetrated in leading American banks and
corporates, the image of MBAs has taken a big
beating. There is some rethinking in the best
of B Schools as to what went wrong.
Entrepreneurship is all about Passion...it's
an ability to work tenaciously towards a
vision or a goal braving all odds...it calls
for sacrifices and taking calculated
risks...MBAs who have their sights on fixed
salaries,safety nets, esops,fat perks and
bonuses and frequent holidays can hardly
qualify or make a success starting on their
own...
Ravi replied to: Ahuja Singh
post - 07 Apr, 2009
post - 07 Apr, 2009
27: From my first hand experience I can tell you
MBA is a handicap to be a successful
enterpreneur for many reasons.
1. One would have lost good number of years i.e Bachelors degree 4 years + say 2-3 years work experience + 2 years of MBA.
i.e a total of 8 years lost in pursuit of knowledge.
So the real question would be is Knowledge necessary. If it is necessary whom is that knowledge helping?
2. Now with 8 years of experience lost in the real world, one becomes wary of each and every activity he has to undertake. For example, if MBA guy will have to really walk around the town selling soaps every day he would think twice on his ROI.
3. The degree becomes an obstacle to reach out to certain elements of the economy who has money power to really help businesses grow.
4. MBA might inculcate certain beliefs in integrity and ethics which are not well practiced in the real world. (Ofcourse with episodes like Enron and Satyam Professionals can't claim to be practicing ethics any more)
1. One would have lost good number of years i.e Bachelors degree 4 years + say 2-3 years work experience + 2 years of MBA.
i.e a total of 8 years lost in pursuit of knowledge.
So the real question would be is Knowledge necessary. If it is necessary whom is that knowledge helping?
2. Now with 8 years of experience lost in the real world, one becomes wary of each and every activity he has to undertake. For example, if MBA guy will have to really walk around the town selling soaps every day he would think twice on his ROI.
3. The degree becomes an obstacle to reach out to certain elements of the economy who has money power to really help businesses grow.
4. MBA might inculcate certain beliefs in integrity and ethics which are not well practiced in the real world. (Ofcourse with episodes like Enron and Satyam Professionals can't claim to be practicing ethics any more)
Rajiv replied to: Ravi
post - 07 Apr, 2009
post - 07 Apr, 2009
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