The Master of Business Administration (MBA) has come a long way from its origins as a stepping stone for professionals in pursuit of senior management. Today the MBA is becoming the qualification of choice for entrepreneurs and the growing number of professionals establishing and expanding small businesses.
The Australian dream of securing a ‘job for life’ is being replaced by executives reinventing their careers and looking to succeed under their own steam. As globalisation and e-commerce transform the corporate landscape, I expect we may see more successful individuals opting out of corporate culture to establish their own ventures to pursue their passion outside conventional frameworks.
Unfortunately, it won’t be a fruitful endeavour for everyone, but there are key factors which can increase the likelihood of succeeding in a different environment or industry, and this is one of the reasons we’re seeing a changing dynamic in the cohort of students undertaking MBA programs.
Of course no one program can teach all of the traits required for small business success, such as persistence, drive and independence; but progressive MBA programs do offer essential grounding in broad business principles such as leadership, negotiation, decision making and calculating risk – as well as providing a platform to build your professional networks via both your program peer group, mentors and academic staff.
The latest Australian government's data on small to medium-sized enterprises on our shores indicate almost 96 per cent of the country’s two million actively trading business fall into the small business category, with less than one per cent considered ‘large’ businesses. The Australian Bureau of Statistics' figures are telling though, revealing that less than half of the 300,000 small businesses started each year are still trading four years later.
As professionals wise up to these sobering statistics – and they are – we’re seeing a rise in MBA enrolments from those seeking skills which may be outside their core industry expertise, but which will hold them in good stead regardless of their future sector of choice.
Interesting research from CCH Research on the reasons for small business success and failure over the past few years discovered key determinants of a venture’s eventual outcome included the level of education, management experience and the ability to manage rising costs of those at the helm, with difficult economic conditions a lesser contributing factor.
If we think about it, this makes plenty of sense. Experts in business analysis or environmental engineering may have fantastic new ideas but lack the human resources knowledge, relevant law or leadership skills to take their idea from seed through to success. It’s these broad business concepts which can be finessed by undertaking a quality MBA program.
Recent research from the Association of Business Schools has shown entrepreneurship is one of the top five content areas students are seeking in graduate programs, and most solid MBAs now offer dedicated modules or initiatives to develop entrepreneurial skills and cultivate an innovative approach – irrespective of whether students are looking to branch out on their own right after graduation, or to substantiate their skills to put a plan into action further down the track.
A recent survey of 20,876 students in 21 countries (including Australia) undertaken by Zogby Analytics in partnership with Laureate International Universities revealed that students are increasingly seeking and expecting flexibility (more than half of respondents believe programs of the future will be offered at all times of the day and night), accessibility (68 per cent of respondents believe universities of the future will maintain free online libraries and over half expect social media will play an increasing role in teaching and learning), innovation (54 per cent of respondents believe future university programs will be shaped by collaboration between students in group project settings), and employment-focused or career driven programs (61 per cent of those surveyed believe universities of the future will design programs in consultation with industry experts).
With many students transitioning between a traditional corporate career and a new venture, juggling work, study and outside interests is an increasingly common challenge. It’s true that historically students were managing work and study commitments when pursuing an MBA qualification to advance into higher echelons of management within their chosen company or industry; today we’re seeing more students balancing study and work with taking the first steps - whether through research and business planning or seeking start-up capital – to succeeding in a start-up environment. It’s a hefty load to bear and flexibility in study modes and methods is a key factor in ensuring students’ academic – and overall – success.
Professor Fred McDougall is vice-chancellor and president, Torrens University Australia
