Need not to say that an MBA degree is costlier than many other bachelor’s degrees for business students. You not only spend a hefty amount on tuition’s and associated expenses but also have to forgo your entire salary during the program course. The SpaceX and Tesla owner thinks that many firms today are run and governed by MBA’s. Though, he believes that“There should be more focus on the product or service itself, less time on board meetings, less time on financials,”. Instead of emphasizing more on master’s degree or related learning, he encourages future business leaders to focus more on learning more about what makes things in reality. His beliefs are indeed reflected in the way he leads his business by focusing more on skills rather than on degrees as many candidates are recruited without providing any formal credentials in his company.
MBA’s no longer makes sense economically
One of the reasons people join MBA course is to earn money. The huge investments made in the course is driven by a notion that the degree will pay off in the long run. But the decreasing salaries particularly for the students having an MBA degree combined with inflated tuition costs means that the degree is no longer providing expected economic returns in the long run.
During the 1990s, the students that passed MBA with good results tripled their salaries within the first five to eight years. But after the financial crises, the spike in salary has been reported just half that was earlier. Meanwhile, the cost of an MBA program is increasing day by day which can cost you around $300,000 in an established university such as Harvard or Columbia.
MBA’s do not represent a networking option like previous years
Many students join MBA course to establish a good network or gain a networking opportunity. However, advancements in digital technology have changed the market viewpoint and how we establish an opportunistic network. For example, many companies nowadays opt for business influencers and good decision-makers over the others. Moreover, if you want to establish a good network, you can always rely on free social media sites such as Facebook and LinkedIn that provides various tools to help you connect with desired business partners.
It is also worth noting that an MBA course sometimes refers to more like students colligability rather than a professional course. Cutthroat competitions in the class mean there is no assurance that your classmates will become your trusted colleagues too. As for professors, they may too not get contacted and many believe that MBA professors are good theorists but untested business professionals.
MBA does not include in the prestigious program anymore
Once upon a time, MBA helped people stand out of the crowd. Since elite clique is more like a crowd today, we can say that MBA no longer falls into the prestigious program list. In the year 2012 alone, the US gave more than 191,570 MBAs which was a sharp increase as compared to MBA schools in the 2000s. But before the 1990s, one had to get enrolled in an MBA program for a full-time course and that too with a lot of hassles.
I’m not saying that an MBA degree is worthless. Any post-graduate program will expand your career choices and opportunities. But looking at the present business scenario, and with the internet and social media, you can develop your entrepreneurial skills more innovatively and without taking help from professional courses as expensive as MBA.
How skills can beat a degree?
We live in an era full of opportunities and in a nation where skills can be developed by anyone. Every day a new start-up comes into existence which is raised by few hundreds to thousands of dollars. All the kick-starters look for ways through which they can win in the shortest of time. We are doing business with other countries and hear opportunistic stories of Mark Zuckerberg and Jack Ma who dropped from college to do amazing things. Media is indeed filled with skills and success that can mesmerize us and urge us to strike our own and make miracles.
How to develop skills on our own?
If you want to save thousands of dollars, focus more on skills than on credentials. At present tons of resources are available that can help you in developing necessary skills such as online classes, and good books. If you are planning to save some bugs and go for self-learning process, read the below-mentioned books that are assigned by most of the business colleges:
Organizational culture and leadership by Edgar H. Schein
The Management of Innovation be G.M. Stalker and Tom Burns
The Intelligent Investor by Benjamin Graham
The Innovator’s Dilemma: The Revolutionary Book That Will Change the Way You Do Business by Clayton M. Christensen
Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim and Renée Mauborgne
How to Win Friends & Influence People by Dale Carnegie
The Art of War by Sun Tzu
Emotional Intelligence: Why It Can Matter More Than IQ by Daniel Goleman