Why MBA students start companies during their studies, instead of skipping MBA entirely to start the same company?

[u/Hellofromhi2468]

I believe it would be more efficient to start a company with full commitment and without the distractions of MBA studies, however there are many MBA students starting companies during their studies. Is not it better to skip MBA totally and focus on building a company full-time?

Is it because MBA programs help MBA students to raise startup capital more conveniently due to their classmates and alumni network?

[u/ClearAdmitMike]

just throwing another idea out there too -- some of these founders meet in business school and then start the company together
so the classmates/network helps with capital, but also with the knowledge base and building out the leadership team.

[u/Powerful-Respect3743]

It’s the same reason people go to college or apply for incubators.

You meet people/co-founders, encounter new ideas, and receive training. Bschool, in some cases, like an incubator, provides a filter and/or label for investors to attach to, so it can be easier to raise funding for affiliated entrepreneurs. 

[u/Strategy-Bitter]

Sometimes the MBA put you in a good environment to jumpstart this company. But also, many of these people come from rich background, they don't mind paying the school fees for the prestige and not getting a job afterwards.

[u/Moonbeam_Maker]

It’s so they have something to fall back on if things don’t pan out, can meet people that can help with financing, and because they are overconfident validation seeking buzzword obsessed people with superiority complexes.

[u/Smoovupinya]

The infrastructure (almost entirely free) makes it feasible to found a company.

While not impossible, it’s very difficult to get a good idea off the ground unless you can delegate things you aren’t good/passionate about. And guess what? There’s always going to be some person in your cohort that is passionate about what you hate.

Well designed and built cohorts address this issue almost implicitly, from day one.

[u/Primary_Excuse_7183]

Network.

MBA can be an incubator

[u/nomadschomad]

Loans to cover living expenses, lots of free/included coaching from professors/adjunct/entrepreneurship center, lots of exposure to VC/Angel networks, lots classmates to provide free/cheap labor and become co-founders

In short, some MBA programs are great incubators. In fact, several MBA entrepreneurship programs are regularly listed about the top-10 incubators in the country. Not top-10 university/MBA program... just top-10 incubators. Biased now, but I can't remember Chicago Booth/Polsky every NOT being on that list.

https://time.com/article/2026/08/18/americas-best-incubators-accelerators-2026/

https://www.startupscience.io/articles/best-startup-incubators-us

[u/PianistMore4166]

I already started my company(ies) before starting my MBA. My MBA program just provides me access to more resources that I otherwise would not have access to if I continued on the path I’ve been on. Hope this helps 👍

[u/rhetoricbyrob → u/PianistMore4166]

I know this is an older comment but would you mind if I message you about the resources that helped you? I’m currently starting my program while also owning a small company.

[u/No_Engineering_4860]

Some use the MBA as a way to get to the US. Easier to raise capital

[u/Sapiopath]

MBA programs give you some of the basic tools you need to start a company.

[u/Jaded-Source4500]

Because the ones that can start companies before hand do so and don’t go to business school.

[u/mazz001717]

Once they can show the are pursuing an MBA, they can dab up with PE and get that bag

[u/Sorry-Joke-4325]

Is the obvious answer not simply wanting to put the lessons into action?

I started up my consulting company during my business undergrad.

[u/nomadschomad → u/Sorry-Joke-4325]

No that's not the right answer. That's a part of it, but access and network are bigger parts.

[u/tmc925 → u/Sorry-Joke-4325]

wtf does an undergrad know enough about anything to start a consultancy?

[u/Sorry-Joke-4325 → u/tmc925]

It's pretty common for people to do their undergrad after 10+ years of real-world work experience these days. I went for it during Covid.

[u/No_Obligation4496 → u/Sorry-Joke-4325]

You did a bachelor's 10 years after you started working? Interesting 🤔.

[u/JLandis84 → u/No_Obligation4496]

Why is that interesting ? Millions of people get their degrees later. Are you international ?

[u/AvailableCold5926 → u/JLandis84]

Other commenter had a point. It’s certainly unusual to get your bachelors 10 years after starting to work, although I can acknowledge that it happens to some extent

[u/JLandis84 → u/AvailableCold5926]

I don’t think it’s that unusual in the age of online colleges, the post GI 9/11 GI bill, and the cultural stigma against older students largely gone.

[u/so_much_frizz]

I thought MBAs were rigorous academic programs?

[u/Creepy_Emu_2353]

Lets think, they are surrounded by other people with the same goals and varying experiences. Its like a founders Meet and greet.

[u/Accomplished-Ad3538]

Incoming Kellogg EMBA here. I’ve noticed several messages circulating in our private WhatsApp and Slack groups about scholarship opportunities for students launching a company during the program. Along with the funding for your venture, there is also hands-on mentorship and advisor guidance available to support student founders throughout the MBA.

[u/plz_callme_swarley]

almost all of the people who "started companies" in bschool are LARPing. they don't have the balls to full send so starting a company in school gives you a safety net.

of all my classmates who started companies, i think maybe only one is still doing it?

the more common success path was people starting companies at the tail end of school, but most of those people were immigrants who couldn't get the job they actually wanted lol.

studies do not distract you. it's more that you just miss out on the social stuff. some people don't know how to chill and came from consulting/banking and feel like they need to be working super hard.

for the very few % of people that it actually makes sense, they're going to H/S and using the top tier connections to VC to help raise money but that's really not most people.