How doing MBA will Help in Entrepreneurship Development in post Covid-19 phase

By Dr. Raj Kumar Singh

In the current crisis of Covid-19, any entrepreneur must know how to utilize the Retrenchment Strategy to survive their business by effectively utilizing their all resources like land, labour, capital, material, method and machine, etc. 

Coronavirus Covid-19 pandemic crisis has created a horrible condition all over the world. In India, the lockdown resulting from the impact of pandemic Covid-19  has not only had an adverse impact on the lives of the people, it has also hit the industries and created hurdle in the entire entrepreneurship development process. It is being forecasted that the worst effect of Covid-19 will be on the MSME (Micro-Small and Medium Enterprises) sector. As we know, Indian MSME have 63 millions enterprises in the country. MSME contribution in Indian GDP is around 30% and in India’s total exports, it is around 50%. Indian MSME creates around 120 million jobs in India. Government of India has promised a package of Rs 1.7 lakh crore for companies under various sectors of industry, however no specific package for the MSME sector has been announced in it, which it desperately needs since MSMEs are backbone of the economy.

In such a horrible situation if students want to start their own startup venture in future or expand their family business and want to develop entrepreneurship as their career option, normally they find themselves in a dilemma as to whether they should directly start an entrepreneurial venture after graduation or first pursue MBA. Society often confuses a student that for being an entrepreneur there is no need of doing an MBA since not all the corporate stalwarts of previous generation had MBA degree, etc. So what should be the proper way? Can an MBA degree help a student become a successful entrepreneur?

Oxford Dictionary has defined Entrepreneurship as “the activity of setting up of a business, taking on financial risks in the hope for profit to fill a gap in the market or to solve a problem.” A structured curriculum of MBA gives proper business knowledge and current corporate insight. In an MBA programme, 25 to 30 subjects are taught which includes core subjects and specialisations in the field of Marketing, Finance, Accounts,  Human Resource Management, Strategic Management, Operations Management, Economics, Organizational Behaviour, Entrepreneurship Development , Advertising Management, Sales Management, Service Marketing, Retail Management, Consumer Behaviour, Digital Marketing, Supply Chain Management, Material Management, Production Management, Taxation, Statistics, Business Environment, Industrial Relations, Business Analytics, Business Environment, Sustainable Development, Corporate Social Responsibility, Management Information System, International Business Management, Business Ethics, etc.

While doing an MBA, students study nearly all the above subjects along with doing summer internship, live industrial projects, presentations, assignment, etc. which develop necessary entrepreneurial attributes like leadership, team work, strategic adaptive thinking, capable of learning, collaborative approach, interpersonal relations and influence, soft skills development, cross cultural management, working under pressure and effective communication which brings 360 degree change in their personality.

After doing an MBA, students just do not enter any business in an unplanned manner. They do it after proper ideation and concept development since they become a keen observer of the potential business opportunities, business model development, new venture creation and become expert in financial decision making process which is must for any entrepreneur.

Many good management institutions have dedicated Incubation Centres, where their professors act as mentors and coaches to help students develop ideas and get them incubated in a controlled and well guided atmosphere so that when students actually launch their products or services through their incubated company in the market their risk can be minimised.

This way an MBA degree can help students test the feasibility, analysis and execution of their innovative ideas. The high degree network of professors as mentors and coaches of reputed MBA institutes with already established relations with the successful startups and expert consultants, concerned government officials, bankers, venture capitalists and renowned academicians, helps the students make their dream come true.

While doing an MBA, students get useful tips such as always have some partner for synergy of knowledge and experience and to minimise the risk, ‘Think Big, Start Small and Grow Cautiously’, vision is more important than money, work life balance, corporate social responsibility, etc. Even after doing an MBA, the students get regular support from established entrepreneurs and other networks in their venture along with their professors who acts like a coach to them.

In the current crisis of Covid-19, any entrepreneur must know how to utilise the Retrenchment Strategy to survive in their business by effectively utilising  all their resources like land, labour, capital, material, method and machine, etc. And how to do the production and operation management by downsizing it to optimum level, proper material management, vendor  management, negotiation, wastage control, expense control, no unnecessary investment, and proper inventory management.

Likewise in Marketing & Sales, emphasizing on high value products and non-moving products only for more cash flow and getting rid of dead inventory, reducing the sales operation cost, reducing the promotional cost and developing effective customer relationship management and supply chain management. Reducing the office expenditure and non-productive human resource, how to emphasize on minimum cash outflow and maximum cash inflow, liquidation of dump stock, clearance of old outstanding payment for smoothening of working capital, maintaining of the quality of products and services will be another strategy.

Above are few examples of how an MBA programme develops integrated thinking in the student to link every function of business with their cause – effect relationship that is a very important aspect of running a business enterprise and an entrepreneur must know about it. With the increase in the complexities of business environment in the present global economic scenario an entrepreneur may be able to work more effectively by pursuing an MBA programme than without it.

So, any student who wants to have a successful career in entrepreneurship must choose an established B-School with all the necessary infrastructure supported with a well known and fully dedicated Incubation Centre, well qualified and specialised faculty in the area of Entrepreneurship with rich industrial experience and proven track record of producing entrepreneurs. This will not only develop the student as a successful entrepreneur, but moreover as a job creator which is the real need of hour for our country.

About the Author:

Dr. Raj Kumar Singh is Professor & Dean (R&D) and Chairperson, Centre For Entrepreneurship, Innovation & Skill Development (CEISD), School of Management Sciences, Varanasi.