Last year, my company Vionix Biosciences hired a bright intern from a college in Delhi. For her, this was a rare opportunity — she was learning advanced Artificial Intelligence (AI) research and applying cutting-edge technologies in ways that could have had a profound impact on the world. She would have worked with some of the top tech leaders in the United States (US) and engineers at Indian Institute of Technology (IIT) Madras, contributing to groundbreaking innovations. Her future was bright. She was on track to become a hotshot developer, earning far more than any MBA graduate — both in salary and stock options. More importantly, she had the potential to do real, meaningful work.
Yet, at the end of her internship, she turned down a full-time job offer. She wanted to study management. She needed months to prepare for entrance exams. We wished her well. But she didn’t get into the business school of her choice. Now, she will waste two years of her life and her family’s savings, only to earn less than the starting salary we had offered her.
This is the tragedy of the MBA dream. Students believe that an expensive degree will catapult them into corporate success. But in today’s world of accelerating technological change, an MBA is little more than an overpriced badge that adds little real value. The tens of lakhs of rupees students pour into tuition, living expenses, and lost income will never be recovered. And even those who manage to secure coveted spots at the prestigious Indian Institutes of Management (IIMs) are struggling to justify their investment.
There was a time when MBAs mattered. My own MBA from New York University’s Stern School of Business was one of the best investments I ever made. It helped me transition from being a programmer to a project leader and then to a vice-president at Credit Suisse First Boston. I learned essential skills — management, marketing, law, accounting — that helped me climb the corporate ladder and eventually, become an entrepreneur.
But times have changed. The corporate world that once relied on MBA graduates to fill its ranks is being reshaped by technology. The era of slow, predictable career progression is over. Today, breakthroughs happen at lightning speed, and companies are built overnight. Companies don’t need managers trained in outdated case studies; they need builders, technologists, and problem solvers. The rigid frameworks and financial modeling drilled into MBA students are useless in a world where business models change faster than university syllabuses can keep up.
And let’s talk about cost. An MBA from a top-tier Indian business school costs anywhere between ₹20 lakh and ₹40 lakh. Add to that the cost of living, the interest on loans, and — most importantly — the opportunity cost of two years lost. If these students had instead joined a startup or built their own ventures, they could have earned, learned, and built something valuable. But instead, they spend years studying PowerPoint presentations, only to re-enter the workforce at salaries that rarely justify the investment.
Even the IIM graduates, the supposed cream of the crop, are finding it harder to land high-paying jobs. Placement reports tell only half the story. What they don’t reveal is that many students are placed in roles that don’t require an MBA at all. They could have got the same jobs without spending a fortune on a degree. And for those who do land well-paying roles, many quickly find themselves stuck in bureaucratic, uninspiring jobs, far removed from the excitement and impact they once aspired to have.
Meanwhile, startups and tech companies are creating new wealth and changing the world. The biggest success stories today are being written by engineers, product designers, and domain experts — not by MBAs. The skills that matter in today’s world — AI, software development, biotech, data science — are not taught in business schools. Those who master these fields are the ones shaping the future. And they are the ones who will be in highest demand, earning far beyond what any MBA graduate can hope for.
And what exactly are business schools churning out these days? Investment bankers and management consultants — an elite club of spreadsheet warriors who make fortunes moving numbers around and telling actual builders how to run their companies. They create complex financial models that rarely reflect reality and write PowerPoint decks that could put an insomniac to sleep. Meanwhile, the real innovation is happening elsewhere, where people are actually making things.
The world is shifting from degree-based credentials to skill-based hiring. Companies are no longer interested in whether you have an MBA; they want to know what you can do. The best way to learn is by doing. Working at a startup, launching a project, solving real-world problems — these experiences teach more than any business school ever can.
If you are considering an MBA, ask yourself: What do you really hope to gain? If it’s prestige, understand that prestige does not pay the bills. If it’s knowledge, recognise that everything an MBA teaches is available online for free. If it’s a network, consider that the best networks today are built by working on ambitious projects with brilliant people, not by sitting in a classroom.
So, here’s my advice — skip the MBA. Learn real skills. Join a start-up. Build something that matters. The world is changing, and the MBAs are being left behind.
Vivek Wadhwa is CEO, Vionix Biosciences. The views expressed are personal
