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> $100k that could go towards self-funding This is not really accurate. The 100K for the MBA will likely come from financial aid which can be paid over time, m
by up_and_up 14y ago
> $100k that could go towards self-funding
This is not really accurate. The 100K for the MBA will likely come from financial aid which can be paid over time, maybe 6-10 years. Thus it is generally not paid with cash on hand.
At the same time there is no $100k financial aid to start a company. Sometimes you can find family money or smaller personal loans, but 100K for a biz is much harder to come by and not the same as 100K of Gov backed financial aid.
This is apples and oranges here...
That being said, your main point re ROI stands..
- tptacek 14y agoThe $100k of personal debt you take on to obtain an MBA is worse than startup funding: aside from the fact that most startup funding is based on equity and is never repaid, that "government backed financial aid" isn't dischargeable in bankruptcy; you are more or less going to have to pay it back no matter what.
- mesozoic 14y agoThat is true the terms are worse. If you can get seed funding go for it. The other thing an MBA gives you though is a pretty soft landing pad if your startup fails.
- tptacek 14y agoDisagree! Lots of people have MBAs. It's not an effective differentiator. A smart, ambitious engineer can do most of the jobs an MBA normally qualifies for, so MBAs have that source of competition too. Meanwhile: your landing includes $100k of non-disposable debt. A couple years ago, I worked for a UMich MBA in a product marketing role. I remember hearing about how MBA's weren't worth getting unless you got one from a top school. But that was years ago. In 2013, even if you can pick one up from Wharton, you're still probably going to end up worse-off unless you manage to parlay the degree into a role in finance. Don't get an MBA.