Busi­ness own­ers en­trepreneurs

Finweek English Edition - - COVER STORY -

and Feed­back­rocket.com de­cided to test whether an MBA added value to an en­tre­pre­neur and their busi­ness. We started off by se­lect­ing those MBA grad­u­ates who had run their busi­nesses through­out their MBA stud­ies and for a pe­riod of at least three years af­ter com­plet­ing the MBA. We then asked them what the to­tal turnover in­crease had been over the re­spec­tive pe­ri­ods. By com­bin­ing this data with the dates they started and com­pleted the MBA, we were able to cal­cu­late the to­tal an­nual per­cent­age in­crease in turnover preMBA and post-MBA for each in­di­vid­ual’s busi­ness. We had 42 com­plete data records across the sam­ple.

I n t wo o f the cases, turnover ac­tu­ally de­creased over the pe­riod of the MBA. In smaller busi­nesses, this could be partly re­lated to the MBA en­tre­pre­neur hav­ing to split his time and fo­cus be­tween his busi­ness and the MBA.

The im­pact of the MBA on busi­ness turnover has in­creased over the past two years that we have con­ducted the sur­vey (it was cal­cu­lated to be 9.0% per an­num in the

Af­ter the MBA pre­vi­ous study, and has in­creased to 14.6% per an­num cur­rently). There are two points to bear in mind when com­par­ing th­ese num­bers. First, the sam­ple sizes here are rel­a­tively small, so we might ex­pect greater ran­dom vari­a­tions in the re­sults. Sec­ond, the ef­fect of the busi­ness cy­cle may have a dis­tort­ing in­flu­ence. In par­tic­u­lar, the econ­omy is much stronger now than it was to­wards the end of 2011 as a re­sult of the ef­fects of the global fi­nan­cial cri­sis, and this would cer­tainly have an ef­fect on busi­ness turnover in gen­eral. Av­er­age im­pact on busi­ness turnover as a

re­sult of the MBA

Dur­ing the pe­riod of MBA study Ad­di­tion to ex­pected turnover growth post-MBA (MBA pre­mium) Pre­vi­ous re­sults

8.8% p.a.

17.8% p.a.

9.0% p.a. Cur­rent re­sults

10.5% p.a.

25.1% p.a.

14.6% p.a.

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