EssaySnark

  • about
  • contact
  • help
  • sign up
  • login
CLICK FOR MORE!
  • Essay Questions
    • Harvard
    • Stanford
    • Wharton
    • Chicago Booth
    • Kellogg
    • MIT Sloan
    • Tuck
    • NYU Stern
    • Columbia
    • Yale SOM
    • Berkeley Haas
    • UVA Darden
    • Duke Fuqua
    • Michigan Ross
    • UCLA Anderson
    • Cornell
  • Strategy Guides
    • MBA Reapplicant Guide
    • Pitching Entrepreneurship as Your Post-MBA Career
    • Applying to European Business Schools
    • School-Specific MBA Application Guides
      • Harvard 2022 MBA Strategy Guide
      • Stanford 2021 MBA Strategy Guide
      • Wharton 2022 MBA Strategy Guide
      • Kellogg 2022 MBA Strategy Guide
      • Chicago Booth 2021 MBA Strategy Guide
      • Columbia 2022 MBA Strategy Guide
      • *MORE SCHOOL-SPECIFIC GUIDES HERE*
  • MBA Consulting
    • Free essay reviews
    • What stage are you in?
    • Military MBA
    • BIPOC Program
    • Testimonials & Reviews
    • Guest Posts
  • My SnarkCenter
    • My Strategy Guides
    • My Favorite Posts
    • Discounts & Offers

Specifically, is there an MBA startup bubble? (part 2)

June 26, 2014 by EssaySnark Leave a Comment

To finish up from yesterday…

Check it out: If you use bschool to launch a business, then that means you’re going to not only have the standard massive student loan debt to deal with on graduation, but you’re also going to be working on a startup founder’s income – which typically is called “not much.” And often it’s called “nothing.”

Oh, but don’t worry – there’s people who want to invest in you! You can even get a peer-to-peer loan from individuals who want to see you be successful (they get a cut of your future earnings). Which basically means you’re hocking your future even further. (Sorry but something is unsettling to us about the idea of asking people to pay you to cover your Harvard MBA loans… which we know is being done there. This is just us but it doesn’t sit right.)

HERE’S THE DEAL: If there is in fact a bubble in startup-land, then this easy money – from bschool startup challenges and bplan competitions to these peer-to-peer lending sites – it’s gonna dry up.

If you’re reading this blahg now, that means you’re probably thinking about applying to bschool this fall, which in most cases means you’ll be graduating in 2017. That’s a long ways away. The economy can do many things in that time, and none of them are predictable – certainly not by the ‘Snark. A bubble in Silicon Valley could pop and have little impact on the rest of us, or whatever impact could be absorbed by the time you’re graduating. Or there could be no bubble at all.

However we just have to wonder at the logic of going to bschool and taking on all that debt and then tossing your hat into the ring of lottery players in the startup scene.

Remember, MOST STARTUPS FAIL. The schools don’t tout those statistics. Does Harvard tell us what percentage of those 50% of graduates’ companies go bankrupt? The schools do like to brag about the big success stories – there’s companies like Honest Tea (founders from Yale SOM) and Bonobos (founders from Stanford) and we’re sure many more (you can name examples in the comments if you think of some) but the on-the-ground reality of real challenges in building a viable business means that many of these student startups are not going to last.

Most of you are very young and maybe don’t even have solid memories of what the dot-com bubble was like. That was in 2001. You were, what, in grade school then? Old Crusty Snark has to tell you, it wasn’t pretty. A site called “f—edcompany.com” went up to track news of layoffs and bankruptcies. It was a very busy site.

Oh hey, there’s an idea! If there is another such bubble burst, you could start your own 20xx version of it! Oh wait, maybe that market is covered.

So hm. It sounds like we’re telling you to drop your dreams, that your ambitions have no place in this world, that you’re never going to have a chance at it. Phooey on that. That’s counter to everything we believe in. It’s not what we’re saying.

We’re just offering the idea that you may want to think things through on this.

And we’re mildly wondering how ethical it actually is for the bschools to be promoting this entrepreneurship craze, given how getting an MBA is not exactly the most cost-effective endeavor in the world to begin with. Sure, your school can be very supportive of your startup, and you can (theoretically) tap the vast network of alumni for help and even funds. But the schools don’t have to live with the consequences of their actions. They can promote starting a business through bschool all they want; their tuition was already paid, they’re not saddled with the debt.

The economics the situation of graduating with an MBA, with no income, and lots of risk… well that is pretty scary when you dig into it.

Filed Under: entrepreneurship Tagged With: trends

« Previous: UCLA essay question out (?)
Next: HUGE change to the GMAT coming »

So who the heck is EssaySnark, anyway?!

We're the snarky experts in MBA admissions!

Sometimes amused and often appalled by what candidates write in their MBA applications to top bschools, EssaySnark created this little blahg to share common mistakes. Learn from them and avoid making admissions directors laugh (or want to hurl) when they read your essays. If you are hoping to have your essay reviewed anonymously on the blahg for free, submit it for consideration.

Want EssaySnark's personal assistance with your MBA applications? Start with our menu of consulting services and please read the Help FAQ to learn how we operate. Still have questions after doing all that? Email Team EssaySnark at gethelpnow at essaysnark dot com.

Good luck on your apps, Brave Supplicant!

Tell us what you think. Cancel reply

Your email address will not be published. Required fields are marked *

Sign up for the 'Snark via email

Enter your address to get weekday blahg posts by email.

UPCOMING MBA APP DEADLINES

  • INSEAD Jan '23 Intake Rd 4
    in 4 weeks
  • INSEAD Rd 1: Sept. 6
    in 2 months, 1 week
  • Harvard Round 1: Sept. 7
    in 2 months, 1 week
  • Wharton Rd 1: Sept. 7
    in 2 months, 1 week
  • Duke Early Action: Sept. 7
    in 2 months, 1 week
   
Get The MBA Countdown and get week by week guidance to plan your summer and get your apps done!
 
   

CLASS OF 2025 MBA APPLICATION STRATEGY GUIDES

From a BSer:
"love the guide books!"




    The 2022 Harvard MBA Application Guide - updated for the Class of 2025!
SnarkStrategies Guide for Harvard Business School!
   
  The 2022 Wharton MBA Application Guide - even more advice on how to get to a win with those essays!
SnarkStrategies Guide for The Wharton School - with clear guidance for the 2022 essays!
   
  The 2022-2023 Columbia MBA Application Guide
SnarkStrategies Guide for Columbia Business School for 2022-2023 applications
   
    The 2022 Kellogg Essay Guide - with a full methodology to identify your 'lasting impact' and your 'values'
SnarkStrategies Guide for Kellogg MBA - revised for 2022!
   
    The 2022 UVA Darden MBA Application Guide gives insights on the essays, Early Action, the possibility of a test waiver, and everything else going on here!
SnarkStrategies Guide for the Darden MBA - updated for the Class of 2025 requirements!
   
   
The Yale SOM MBA Application Guide for Class of 2025 candidates!
SnarkStrategies Guide for Yale SOM - updated for 2022
   
    The 2022-2023 NYU Stern MBA Application Guide that covers the essays, the EQ Endorsement and test strategies!
SnarkStrategies Guide for NYU - discusses your requirements for the Class of 2025 essays!
       
   

Brave Supplicants' latest reviews on The 'Snark


2020-21 r1 candidate
Apr 19, 2021
 by 2020-21 r1 candidate on Waitlist Assist
Please get this if you have the resources!

I would recommend EssaySnark to every waitlisted candidate! I was waitlisted by one of HSW in R1 this... Read more

hopeful
Feb 11, 2021
 by hopeful on MBA Interview Prep: Custom Practice Questions
Helpful

Just wanted to say thank you for these questions! A lot of them were really tailored to my profile, ... Read more

George
Apr 10, 2020
 by George on EssaySnark
Great Starting Point

I thought getting over the GRE/GMAT hurdle was fairly straightforward--disciplined study then test execution... Read more






Not sure where to begin with EssaySnark?
Our Snark Selector
will tell you!



   
Get started now - without doing any work! The Comprehensive Profile Review will help you start your strategy for your MBA applications.


EssaySnark® is a registered trademark. All content copyright © 2010–2022 Snarkolicious Press · Privacy Policy

Where should you start with EssaySnark?

Which EssaySnark service is right for you? Answer a few questions to find out!

This field must be set to Everyone - then in the Settings -> HTML -> After Fields screen there's JavaScript to hide it.
Sending