Five things a business degree can never teach about business

A business degree can teach you a lot. But there are some things about entrepreneurship you only learn with experience. Here's a look at all the things a business degree can't teach you about business.

6 mins read

Five things a business degree can never teach about business

Most of you would be halfway through your MBA degree already when you’d stumble upon this article. As bizarre as this sounds in a world where a degree in business is worth more than a hundred thousand dollars, you’d be surprised to know about all the things you might never come across during your post-graduation days. Where it is considered vital to pursue an MBA after graduation, we bring to you a list of five things your business degree will not teach you about entrepreneurship and business.

Things A Business Degree Can't Teach You

1. The “hows” of hiring and managing people

A key aspect of business management is the art of managing people. Hiring the right people and making them stay for your company goes a long way in building a team that’ll help you achieve organizational goals. On the contrary, if the people you hire do not stick around for long, there, definitely, is some problem. But before you try retaining people you’ve already hired, you need to ensure that your initial steps are in place. Along with writing a clear job description, you’ll have to ascertain whether or not the person’s skills will help you reach heights. Such expertise can be attained only with practice, after conducting multiple interviews. Amongst the many things that B-Schools fail to teach students is the ability to hire for the long-term, and manage people. Most startup owners talk about how managing people is one of the toughest parts of running a business.

2. Acronyms, Regulations = What?

Once you join a company, you’ll come across numerous acronyms like TDS, COI, IEC, etc., the context of which will be oblivious to you. The importance of understanding such terms beforehand will get evident when these will swim in front of your eyes, day in and day out. Where the relevance of comprehending the terms with respect to taxes and regulations is noticeably much, MBA colleges don’t really provide a checklist of these terms.

3. Raising Money

How to raise money is a skill that you should be abreast of, before you decide to lay the foundation bricks of your start-up. A business degree can teach you when you need to raise capital, manage your finances, and even help you build a credible network of potential mentors and investors. But it falls woefully short of teaching you how to raise money. You must have a good knowledge of the hows of attracting investors. You need to have a grip on everything about your business - from pitching yourself in a way that is convincing to describing your problem statement and explaining the difference your product will make if launched. In addition, you must be clear about your distribution channels and team-building with expertise in Powerpoint presentation. However, you aren’t made familiar with any of these until you step into the corporate world.

4. Dealing with Uncertainty

The case studies you deal with in B-School are generally designed with a focus on companies that have been in business for at least a couple of years. You might get familiar with situations where you’ll have to make crucial decisions. From whether or not a new product should be launched to what can or cannot jeopardize the business, such case studies from age-old businesses require brainstorming in multiple domains.

But when it comes to handling businesses in the very first year, entrepreneurs are clueless about the relevant information. Where terms like customer acquisition are new to you, you hardly have an idea about the workings of the various departments as well as the core basics like the probable salaries demanded. Making decisions with little or no information is one other thing B-Schools fail to teach which can be learned with experience, on the job.

5. Managing Mental and Emotional Well-Being

A rare topic for discussion, it is vital to ensure that you take good care of your emotional health. In the initial stages of your business, you’ll face a number of rejections. In such times, when it’ll get hard to stand firm and loyal to your start-up, you’ll need to stay sane to walk ahead and achieve your goal. When everything around you will seem to fall apart, you’ll have to look for ways to calm yourself down and stay focused, while not giving up on your dreams and ambitions. You must learn to take time out to relax so that the minute you stand back up, you have a fresh mind to work with. To turn into a successful entrepreneur, try finding your calm while you’re still in B-School.

So, Is MBA Necessary To Become Successful In Business?

After reading the list above, the things your business degree does not teach, you might have started wondering about the value added by your B-School degree. But remember: Every little thing we do or don’t do has a vital role to play in our lives. In the end, it all comes down to how much you really want something.

An MBA degree can definitely not replace real-life experiences and learnings. But it can certainly give you an edge - be it in terms of building a credible network, stimulating a fast-paced work environment, or teaching you the value of hard work and creative thinking.

In fact, here are 5 Reasons Why an MBA is necessary to become successful in Business.

All the best!