When Raja Dutta was studying for an MBA at Judge Business School, Cambridge University, he had an idea for an innovative business that would build on his passion for traditional Indian art.
Since graduating from the Judge, his internet portal www.artnsoulindia.com has become an important global showcase for artists from all over India who would otherwise struggle to find an outlet for their work. Although Raja, 33, came to Cambridge in 2009 from a corporate background, he was typical of a growing number of MBA students who plan to go it alone after graduating by starting their own businesses.
Many will go on to become the entrepreneurs of the future. MBA courses have traditionally been seen as most relevant to those who want to advance in the corporate world but that stereotypical image is fast changing. The Judge is one of a growing number of business schools that now place entrepreneurship at the centre of their programme, reflecting the growing aspirations of prospective students.
“The Judge has always been a hub of entrepreneurial activity,” explains Chander Velu, lecturer in marketing. “This reflects the fact that Cambridge University is at the heart of a cluster of innovative technology-based businesses. About 40 per cent of our MBA students express an interest in becoming entrepreneurs and we do everything we can to encourage them. Students regularly interact with local venture capitalists and entrepreneurs to learn how to put their newly acquired business skills into practice. We also have many existing entrepreneurs joining our MBA courses who share their experience with their peers.”
In his first term at the Judge, Raja Dutta took part in the Cambridge Venture Project, which enables students to work with innovative local companies. The brief is to produce a plan for the business to help it commercialise its products or services.
“This exposure immediately brought me into close contact with the practical issues faced by the entrepreneurial community," says Dutta. “Students at the Judge can choose a combination of electives that reflect their interests and entrepreneurship is one of the most popular choices,” explains Chander Velu. “In Raja’s case, he chose to draft a business plan for his web-based business as part of his summer dissertation.”
For Dutta, the biggest challenge was to find an investor and he was lucky enough to gain backing in India based on his business plan produced during his MBA. He now employs a team of four who are scouring India for artists to join the 50 whose work is already displayed on the website. The company’s marketing strategy makes strong use of social networking with Judge alumni and others. So far, sales, both in India and overseas, are promising.
Lancaster University Management School also places great emphasis on encouraging budding entrepreneurs, as faculty member Frank Cave explains: “Our New Venture Challenge starts in week one and is a core module of the MBA. Students not only gain knowledge from case studies but also have the opportunity to put the theory into practice in the form of a consultancy project for a real start-up company. This culminates in a venture proposal meeting with a simulated investor panel. The majority of our students are heading for the corporate world, but if an entrepreneurial opportunity passes their window one day, we ensure that they will have the tools and the skills ready to grasp it.”
Former Lancaster MBA Sonu Bubna has teamed up with fellow students to launch Gaea Naturals, which has ambitions to become the market leader in the UK for water treatment technologies. Gaea has already won awards and research grants. “As I am a third generation entrepreneur, I’ve always wanted to start my own business,” says Bubna. “The opportunity to work with start-ups on the New Venture Challenge was very motivating and many modules on the Lancaster MBA course were conceived with entrepreneurship firmly in mind. Now that Gaea is up and running, I am responsible for setting directions for growth, exploring funding opportunities and taking the company to the next level. It’s challenging but also fun.”
Keeping a close watch on the progress of Gaea and a wide range of start-ups emerging from Lancaster University is Ian Gordon, a serial entrepreneur who fulfils the role of entrepreneur-in residence. Ian advises and encourages young entrepreneurs as well as teaching on the MBA course. But are people born with the entrepreneurial gene or can they be taught to become entrepreneurs? It remains an unanswerable question. However, Ian, who was himself an MBA student at Lancaster 15 years ago, believes that students can definitely learn by example. “We are great believers in bringing business practitioners into the school as a way to encourage self-starters. Passion, pace and preparedness – these are the three things I tell MBA students they will need if they are to become successful entrepreneurs.”
Age is no barrier to starting your own business. Matthew Baker was in his late forties when he enrolled on the full-time MBA at Henley Business School. After graduating in 2009, he set up his own company selling sustainable energy products sourced in China. Taking the elective on entrepreneurship and making a study visit to China as part of his course set Matthew thinking about his new business idea.
“Networking with some very experienced and knowledgeable people I met through Henley has given me the confidence to assess the risks and rewards of an entrepreneurial lifestyle,” he explains. Baker also highlights the emphasis Henley places on personal development. “That enabled us to examine the mind- and skill-set that a successful entrepreneur needs. It helped me to better understand whether I had the capability to accept the challenge of going it alone.”
Other UK business schools strongly committed to encouraging entrepreneurship are to be found at Imperial College in London and at Robert Gordon University in Aberdeen. As a general rule, prospective MBA students keen to develop an entrepreneurial streak would do well to look beyond the published world rankings to find the right school where self-starters are encouraged and supported. Sharon Bamford, chief executive of the Association of MBAs, explains that rankings focus on how much money students earn immediately after graduation. “As the accrediting body, we want to set a clear message that some MBA programmes can be penalised in this way and schools need encouragement to highlight the importance of promoting and encouraging entrepreneurship among their MBA cohorts.
“To support our business schools in achieving this, we have launched the MBA Entrepreneurial Venture Award 2011. The new award is aimed at MBA alumni and current MBA students running recently - founded businesses that are innovative and successful. The winner will gain access to a wide range of investors. The award also highlights the significance of entrepreneurial activity in a competitive global market and ties in well with the Government’s new initiative to encourage entrepreneurship – Start-Up Britain.”
“Becoming an entrepreneur can be difficult and lonely,” Bamford adds. “That’s why an MBA programme is an ideal starting point, allowing access to a vast amount of expertise and networks. And it is a chance to test out your innovative ideas within a stimulating and challenging environment."
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