Using an MBA degree to start your own business in China

Thinking of setting up your own shop after arming yourself with an MBA?

An executive education programs can be a great start towards becoming a successful entrepreneur”

Corporate and government work experience, an MBA, foreign language studies and overseas work experience may all form part of your career development plans. Executives who are seeking develop their career further should consider a combination of some or all of these elements. In the current business environment in China, entrepreneurship is becoming an increasingly popular path.

The MBA path to entrepreneurship

Entrepreneurship, like leadership, comes more naturally to some people than others. But it can be learned, and is increasingly being taught to executives as part of an MBA or other executive education program. If a business education is chosen well, it should provide inspiration, knowledge and the qualification as well as network for developing your career, but bear in mind that it is also likely to drain your capital.

The knowledge required to successfully start and develop your own business is a combination of all the parts of an MBA program, although entrepreneurship may be just an elective component on an MBA program. A notable exception is the University of Southern California’s Global Executive MBA Program in which entrepreneurship is embedded as a requirement. For executives currently considering enrolling in an EMBA or International MBA program in China, the number of programs to choose from is increasing rapidly, with varying styles and levels of rigor and quality.

Some factors which may also influence the decision to take an MBA in China are the rapidly improving business environment in the country and the increasing difficulties in obtaining a visa to study in the United States.

Currently, there are more than 160 MBA programs offered by more than 80 institutions across 30 locations in China. The number of Sino-foreign international MBA programs delivered in China is also increasing as foreign business schools attempt to broaden their own programs by incorporating Asian experiences. These joint-venture programs are attracting more applicants even while the overall number of applications for MBA courses are decreasing in both China and worldwide. According to data from China’s National Bureau of Statistics, the total number of MBA applications in mainland China totaled 35,777 in 2003, a decrease of 20 percent from the previous year

Entrepreneurial concerns

Traditionally, an Executive MBA program is intended to help those at director level move up to General Management positions within their companies. In the current market, we are seeing an increasing number of EMBAs changing companies and even changing careers, with many becoming entrepreneurs. This is a matter of concern to firms who have previously supported their employees’ EMBA education.

It is clear that MBA applicants are becoming more discerning in their choice of programs. The styles of individual MBA and executive education program can be compared in the same way as the corporate culture of your own company or institution. When considering different options, executives should choose a program that most suits them and their career development goals, as well as one that is aligned with your own personal values. Clearly, return on investment for both executives and employers is becoming a more important issue as the number of people simply taking an MBA in order to gain a business qualification decreases.

The balance between work, study and family required for an executive to complete an MBA program successfully is also required in undertaking an entrepreneurial venture. In choosing an MBA program, part-time or full-time study, program fees, and other costs should also all be considered. And if entrepreneurship is your next intended step, you would also need to consider whether a costly business education will leave you with sufficient funds to get started on your own venture, and whether the opportunities provided by the network you gain will give you access to necessary capital with which to develop your career.

MBA head start

Emerging career development data shows that executives with an MBA can add enormous value to a company, and that MBA-holders can greatly raise their positions and their salaries by selecting the right program which will help them achieve their specific career development goals.

Smart executives should ensure that the Admissions Officer of their chosen MBA program is admitting good quality students not only in terms of GMAT scores and language skills, but also in terms of the depth and length of work experience and diversity in backgrounds. The low starting salary offers of young MBA-holders who often lack sufficient work experience shows what the market is looking for, and young executives should think carefully before deciding on enrolling in an MBA program.

For middle and senior managers, the non-financial benefits of a broader and more influential network of classmates with experience, combined with international study, company visits, and broader management knowledge gained from an EMBA education can be sufficiently satisfying. But younger managers who participate in EMBA programs usually glean greater benefits from their more experienced classmates.

An executive education programs can be a great start towards becoming a successful entrepreneur, and for people who want to gain a business education and then apply it the local market, an MBA in China is an excellent way to achieve this.

MBA numbers

There are currently more than 160 MBA programs offered by more than 80 institutions across 30 locations in China.

But the number of MBA applications is dropping: figures from China’s National Bureau of Statistics show that the total number of MBA applications in mainland China was 35,777 in 2003, a decrease of 20 percent from the previous year.