MBA is (not?) important

November 24, 2024

The question of whether to pursue an MBA can feel overwhelming. Is it the golden ticket to career success? Or is it just a really expensive way to delay figuring out what you want to do with your life?

I've lived through this debate. I studied at IIM Indore for my undergraduate program (IPM) and then went straight into an MBA at IIM Ahmedabad. Looking back, I can't say the decision was perfect, but it wasn't wrong either. It was just... mine.

Let's talk about why an MBA might (or might not) make sense.

MBA: the "safe" path

Let's be real. Higher education is often seen as a safety net. It's less about what you learn and more about the brand value it slaps onto your CV. When I was deciding whether to do an MBA, the job market for top front-end roles in consulting and finance seemed like a gated community. Without the "MBA" badge, you weren't even invited to apply.

There's a reason for this. The sheer competition forces recruiters to use shortcuts. An MBA from a tier-1 college is shorthand for:

But here's the thing: an MBA isn't necessarily about learning. It's about signaling. It's a way of saying, "Hey, I'm credible. Take me seriously."

In many companies, especially in consulting and finance, an MBA often becomes essential to access higher-responsibility roles. In my case, one of the reasons I chose IIM Ahmedabad was future-proofing. My company hires exclusively from IIMA and ISB for entry-level roles, with rare exceptions like LSE and IIMB. Small team sizes mean they focus on candidates with proven credentials, and I wanted to position myself for those opportunities. For me, it was about maximizing the likelihood of long-term career success.

Survivorship bias in entrepreneurship

Now, let's address the elephant in the room: entrepreneurship. It's often seen as the cooler, more independent alternative to the MBA. Be your own boss. Build something that's yours. Skip the grind of a classroom and go straight to the action.

Before I go any further, let me say this: I have nothing against entrepreneurs. It's the bold, crazy, and audacious who change the world. In fact, I would love to start something of my own someday. These are just my reflections from when I was trying to decide whether to pursue an MBA or take a different path.

Here's what you don't hear enough: opinions online about entrepreneurship are often swayed by the financial backgrounds of those advocating for it. Many success stories involve founders who had family money, connections, or the luxury of failing without catastrophic consequences. The narrative that anyone can make it big can feel empowering, but it glosses over the fact that not everyone starts from the same place.

Entrepreneurship is about betting big, and while the upside can be life-changing, the downside can be equally harsh. For every startup that takes off, nine others fail. Choosing to pursue an MBA, on the other hand, is less about hitting the jackpot and more about stacking the odds in your favor. It's not the path to outsized outcomes, but it offers better protection against the downside. It's like choosing a fixed deposit over the stock market. The stock market (entrepreneurship) can give you extraordinary returns, but it's volatile, risky, and heavily dependent on timing. The fixed deposit (MBA) won't make you rich (relatively) overnight, but it ensures steady growth and safeguards your financial and career stability.

The Road Not Taken

Would I have been better off working for a few years before doing my MBA? Maybe. A few years of work experience often makes the MBA experience richer, as you know what you're solving for. At the same time, my undergraduate program (IPM) was relatively new back in 2018-2021, and there weren't many success stories to guide me. My network was small, and I didn't have access to the kind of mentorship that might've helped me take a different path.

So, I went for the MBA. It was a safe choice, yes, but it also worked out. I learned a lot, grew as a person, and landed my dream job. Was it the only way? No. Was it the best way for me at that time? Probably.

So, is it worth it?

The answer depends on you. If you're clear about your goals and can access the networks and opportunities you need without an MBA, then maybe it's not necessary. But if you're looking for a reset, a launchpad, or a way to fast-track your career, an MBA (especially from a top school) can still be a solid investment.

For me, the MBA wasn't a magic solution, but it was a meaningful chapter. It helped me grow, build connections, and step into a world I might not have accessed otherwise. If you're considering it, don't just think about whether it's worth the money. Think about whether it's worth your time, your energy, and your dreams. Because at the end of the day, the MBA is a tool. What you build with it is up to you.