July 27, 2010 by Joel Milani
They’d have to be. Below is a graph, showing the percentage of failed start-up businesses over a ten-year period:
It’s a tough world out there for the small-business owner. According to the statistics found at smallbiztrends.com, 25% of startup businesses go under during their first year. Half are gone in four years, and after ten years, only 29% remain in business.
Anyone interested in starting a business should know what it entails, and according to Troutwine’s article, a master’s in business administration gives you the best chance of making it to that ten-year mark.
A commonly held belief among small business owners is that M.B.A. programs are “a waste of time and moneyŚresources that they could better apply to a business venture, rather than a university.” But programs have changed over the years. Graduate business schools have come a long way to accommodate the interests of entrepreneurs:
Recently, however, a new perspective has emerged . . . Whether it is the relevant M.B.A. coursework, enviable networking opportunities, real-world laboratory conditions or the lure of business-plan competitions, aspiring entrepreneurs are gambling that the time they spend in an M.B.A. classroom is time well spent.
An M.B.A. degree should be considered an investment, just like your first store or office. The up-front cost may be high, but the knowledge you gain while earning your degree could be what propels your business to that slim 29%.