Should You Get An MBA from a Lower-Ranked School?

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Nedda Gilbert January 27, 2015

Considering an MBA, but not sure if the top-ranked schools are in your plans? Get advice from Noodle expert Nedda Gilbert about how to decide if lower-tier programs are worth the expense to advance your career.

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Entrepreneurs fostering new ventures outside of well-developed entrepreneurial ecosystems like Silicon Valley face significant challenges. These markets are unlike Silicon Valley, and they will likely remain so. That doesn't mean they can't nurture and sustain new businesses. In transitioning markets that lack abundant private sector financing, creative approaches from government officials, donors, and business leaders can fill the void to support entrepreneurial activity. Northeast Ohio (where Cleveland and Case Western Reserve University are located) has become a laboratory for such innovative solutions. During our time together in this course, we will explore some of these creative approaches to promoting regional entrepreneurship. Northeast Ohio has seen a massive infusion of government and donor resources for over ten years. In that time, Northeast Ohio has promoted regional development (including job creation and follow-on funding) through alternative methods of financing startups. It has not been easy. The region has made progress, but it remains to be seen whether it has struck upon an enduring formula. A dynamic entrepreneurial ecosystem takes many years, even decades, to develop. Government policymakers and donors typically seek quicker returns on their support programs, which makes long-term support for entrepreneurship challenging. This course includes case studies and first-person testimonials from entrepreneurs who have launched products and services ranging from medical devices to LED lights to whiskey. You will learn how these entrepreneurs discovered and procured resources from various programs and intermediary organizations. You will hear from business people still in the process of developing their companies as well as those whose ventures have flourished. Our focus will extend beyond Cleveland to selected markets around the world, including Greece, Vietnam, Tunisia, Argentina, Rwanda and China. You will learn about international incentives and other supports available to developing startups and small businesses across the globe. This course examines how different communities around the world approach implementing strategies and methods to support businesses. I will ask you to reflect on how to apply the principles we learn to growing entrepreneurship where you live. The social interactive features of the online platform will enable students from around the world to share ideas and learn from one another. Most MOOCs rebroadcast professors’ lectures; this course is different. Don’t expect to see me standing in front of the camera, talking and lecturing every module. Instead, the lectures will be relatively short in length. They have more of the feel of an engaging documentary than a static classroom setting. ## __What type of person takes the *Beyond Silicon Valley* course?__ - Active and aspiring businesspeople in communities looking to initiate new startup ecosystems or bolster existing ones - Current and prospective entrepreneurs who want to learn about funding sources, risk management, and the lifecycle of startups - Professionals who work in government agencies, nongovernmental organizations, philanthropic institutions, and various private funds that fund startups - Anyone curious about how to create and grow startup ecosystems outside the major tech hubs - The principles Beyond Silicon Valley teaches have been drawn from and applied to startups worldwide, from small villages to megalopolises. You'll study success stories spanning the globe from Vietnam to Kosovo to Botswana. ## __What will you learn in *Beyond Silicon Valley*?__ - How and where startups can find funding to get their businesses off the ground - What role government can play in encouraging startups and a healthy startup ecosystem - How anchor institutions such as universities and healthcare systems participate in startup ecosystems - How nongovernmental organizations support startups - How to raise funds from venture capitalists, angel investors, and accelerators - How to navigate challenging periods in the startup lifecycle - The importance of mentoring in successful startups

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Every now and then, the MBA takes a solid bashing.

Pundits say it’s a costly, useless degree for people who are already established in their careers. Others argue that it’s pointless to go to business school unless you can get into the most selective, prestigious MBA programs.

The value of the MBA depends on many factors. It may be an effective tool for people who want to switch careers, as it can open doors to lucrative fields and powerful networks. In areas such as investment banking or private equity, the MBA is essential for advancement. Depending on your particular situation, this degree can jumpstart your career and increase your income potential.

Since not all business schools are created equal, however, is it worth your time and money to consider a lower-tier program?

Financial Factors

In light of the expense of MBA programs and the opportunity cost of leaving the workforce, many people base their decisions solely on the degree’s potential impact on future earnings. While financial goals are an important factor, there are many other reasons to enroll in an MBA program.

Skills Development and Professional Networks

In many industries, the skills students develop in MBA programs are relevant and increasingly required in the marketplace. If this is the case, a degree from a local or state school may take you where you need to go — especially if your industry respects the program you plan to attend. For example, graduates from George Washington University's School of Business often pursue careers in nonprofit and government sectors in which organizational mission and professional networks — more than salary — are the primary considerations.

Strategy and Selectivity

If you’re changing careers, it may not be necessary to attend one of the most selective schools. Instead, consider enrolling in a well-respected program that offers an excellent fit for your new path. Many state and and local universities, such as North Carolina State University's Jenkins Graduate School of Management, offer part-time, online, and full-time MBA options with strong ties to the local business community. If your goal is to be hired by a large company, such as Johnson & Johnson or Pfizer, note that many of them recruit from a range of schools, not just those in the top tier.

If, on the other hand, Wall Street is your desired destination, and if you don’t plan to enroll in one of the most selective programs, then it will be important to attend a school where top financial recruiters search for talent. Regional powerhouses, like Rice University, may lead you to diverse opportunities locally — they will also offer access to financial industries.

Return on Investment

Salary data suggest that, overall, graduates from the top 50 U.S. MBA programs enjoy a big return on their investments, as compared to their non-MBA peers. It’s important to note, though, that there is, on average, a considerable difference in earnings between upper- and lower-ranked schools. If money matters, and you’re not aiming for the most selective programs, ask yourself if the tuition and opportunity costs are worth the potential for advancement toward your professional goals. If an MBA is necessary to reach the next rung in your career, look for local business schools with strong ties to your industry or company.