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#Is an MBA Still Necessary?

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This story first appeared in the October 2012 issue of Entrepreneur . To receive the magazine, click here to subscribe.

It used to be that top corporations picked up MBA graduates as fast as schools could slap mortarboards on their heads. These young guns drove corporate reorganization, product innovation and marketing and implemented new styles of leadership. They were a symbol of a new culture, and anyone serious about a career in business aspired to earn those three letters.

Today, the power of the MBA is not so certain. Many in corporate America and academia say the degree that once defined bright, snappy leadership now symbolizes a discipline that has lost touch with the business world. They argue that MBA programs have become too focused on research, and that in-house training at large firms has more practical applications. They claim the programs have failed to create the types of leaders who can deal with globalization; some say they don t develop leaders at all, just functionaries. Other critics think a focus on profit and share value, rather than on ethics and sustainability, fostered the type of narrow-minded thinking that led to the fall of Enron and the last recession.

On the other hand, some academics point to an evolving curriculum that has kept pace with and even led the business community. If the MBA is useless, they argue, why do tens of thousands of people still enroll in the programs every year?

When it comes to entrepreneurship, the question of whether to invest in an MBA degree becomes even stickier. Can the necessary skills for successful entrepreneurship be taught? Can those with MBAs operate effectively only within large corporations? Are recent entrepreneurial MBA degrees worth the time and money?

We spoke with two authorities on business education about the state of the MBA and whether earning the degree is the right path for aspiring entrepreneurs.

The Case Against an MBA