Starting a Business Straight Out of School? How HBS Supports Student Entrepreneurship
This coming weekend, Harvard Business School (HBS) will host an annual Entrepreneurship Conference sponsored by its own homegrown Entrepreneurship Club. The conference brings together hundreds of participants including “founders, joiners, and venture capitalists,” all of whom hope to connect through a smorgasbord of lectures, panels, chats, and networking sessions.
This year’s conference, scheduled for Saturday, March 31, is expected to draw more than 500 participants, including many top professors and professionals holding court on a variety of topics. Three keynote lectures will be given by CEOs and founders from Catalant Technologies, Strava, and edX. Strava’s Michael Horvath, who is also a professor of entrepreneurship at Dartmouth’s Tuck School of Business, will share his experiences having held several high-level roles at multiple startups.
Tuck Professor and Strava Co-Founder Michael Horvath will give one of the Entrepreneurship Conference’s keynote addresses.
In addition to the keynote lectures, the conference is also stacked with nine different panels. Some will include general discussions on topics such as starting a business during your MBA program and financing your startup. Others are more specific, covering some of the hottest fields in entrepreneurship right now. Examples of these include “Blockchain: The Next Transformative Technology?” and “AI/ML: Artificial Intelligence in Diverse Contexts.” Finally, attendees will also get to take part in a venture capitalist meet-and-greet and a networking lunch and cocktail hour.
HBS is extremely supportive of entrepreneurship, according to Jim Aisner, the school’s director of media and public relations. He spoke at length about the myriad ways in which HBS is a fantastic place for both seasoned and budding entrepreneurs, underscoring the range of support Harvard’s large entrepreneurial community offers to those looking to start their own businesses.
“Entrepreneurship is a major component of life at HBS, with some 35 faculty members doing research, course development, mentoring/advising, and teaching in this area,” Aisner told Clear Admit.
Harvard’s program requires all first-year MBA students to take an entrepreneurship course, and there are also a large number of entrepreneurial-focused electives on offer in the second-year Elective Curriculum. In addition, the school boasts multiple conferences and events that reach programs outside the business school. “There is a whole ecosystem [at Harvard] promoting and nurturing entrepreneurship,” Aisner notes.
Significant Programming Supports HBS Student Entrepreneurs
HBS is also home to the Arthur Rock Center Accelerator, which helps selected teams develop their ventures over the course of the year. In addition, the Rock Accelerator offers summer fellowships to support students from the entire student body who seek to develop entrepreneurial ventures during the summer and hosts a semiannual conference that brings 100 alumni back to campus each year.
Rock Venture Partners is a program that lets small groups of students learn more about investing in startups by supporting Rock Accelerator teams as they go through pitching and starting their ventures. Then there is the Harvard Innovation Lab, or i-lab, a resource available to current students at any Harvard school interested in exploring innovation and entrepreneurship at any stage. “The Innovation Lab creates a hotbed of cross fertilization for teams from across the university,” says Aisner.
Given this supportive environment, it won’t come as a shock that many HBS students decide to start their own businesses rather than pursue a more traditional career path in their post-MBA life. Out of more than 900 students, eight percent of graduates from the Class of 2017 chose to start their own businesses upon graduation, up from six percent in the Class of 2016. Although this growth is indicative of a national trend toward more and more recent MBA grads founding startups, HBS outperforms many top schools in this regard. By comparison, at Chicago Booth just 3.2 percent of 2017 MBA grads went immediately into running their own startups. Meanwhile, at the University of Pennsylvania’s Wharton School, just 2.3 percent of the most recent graduating class founded businesses.
As another indicator of its commitment to fostering entrepreneurship, HBS will host its annual New Venture Competition on April 18th, which bestows more than $300,000 in prize money to outstanding new ventures. Contestants may apply in either the business track, with ventures that drive substantial market value, or the social enterprise track, with ventures that drive social change. This recent Clear Admit article noted that the social enterprise track received 69 entries this year, more than ever before.
Nationwide, more and more students have begun to pursue startups at all stages of their MBA careers. From this weekend’s student-led Entrepreneurship Conference to the wide range of related centers, faculty, and other support, HBS’s investment in nurturing its entrepreneurial students is clear.
This article has been edited and republished with permissions from our sister site, Clear Admit.
School v. School: NYU Stern or Columbia Business School?
What happens when you pit two of the New York metro’s top business school’s against each other in a head-to-head duel of MBA might? It’s a school vs. school showdown, as we compare Columbia Business School to the Stern School of Business. Let’s take a deeper dive! Continue reading…
Just How Much Are Stanford MBA Grads Getting Paid?
Wondering what kind of pay day you can expect if you are among the select 6 percent of applicants who gain admission to Stanford Graduate School of Business (GSB)? Are you sitting down? Perhaps you should be, because the school’s 2017 employment report—released today—reveals record-breaking salaries for the third year in a row.
On average, last year’s graduates, now in their first year of post-MBA work, are pulling down an annual base salary of $144,455—a $4,000 increase over last year’s all-time high (median base compensation was $140,000, also besting last year’s by about $4,000). But it doesn’t stop there. Average signing bonuses, reported by 51 percent of the class, are also up—setting a new record at $29,534. (Median salary bonuses remained unchanged at $25,000.) And as if that weren’t enough, another quarter of the class reported other guaranteed compensation (OGC) surpassing last year’s all-time highs by a whopping $10,000. Average OGC for 2017 grads was $83,065, and median OCG was $50,000. The range was $6,750 to $450,000.
The GSB, in announcing these most recent employment statistics, pointed out that OGC will no longer be tracked by the MBA Career Services and Employer Alliance (CSEA) and that it began last year capturing an “Expected Performance Bonus” metric in its place. This measure includes both guaranteed and non-guaranteed cash compensation based on performance. Though the average and median EPB for the Class of 2017, at $71,946 and $35,000, were each lower than OGC figures, a full 65 percent of the class expected to receive such performance-based compensation, up from 61 percent last year—and substantially higher than the quarter of grads who reported OGC. The reported range for EPB was $5,000 to $450,000.
Stanford MBAs claim higher pay days than graduates of any other school, in part thanks to higher base compensation. Stanford’s median base—$140,000—surpassed that of Harvard Business School (HBS) ($135,000), the University of Pennsylvania’s Wharton School ($130,000), and the University of Chicago Booth School of Business ($125,000). Grads from both Stanford and HBS reported the same median starting bonus of $25,000, but the $50,000 in other guaranteed compensation reported by Stanford grads was double what grads at the school’s top East Coast rival reported.
Tech Less of a Draw Than in Prior Years
Bucking the trend at many other business schools—where increasing percentages of students are clamoring to enter the technology industry—fewer Stanford MBA Class of 2017 grads headed into tech. In what the school deemed “a rebalancing of the scales among the three top industries,” interest in technology dropped 8 percentage points—to a mere 25 percent of the class. Almost a third of the class—32 percent—headed into finance, up a point over last year. Consulting, too, gained four percentage points to attract 20 percent of the most recent class.
“Our leading employers span a wide variety of industries,” Maeve Richard, assistant dean and director of the Career Management Center, said as part of a news story announcing the latest employment statistics on the Stanford GSB site. “They represent organizations in such areas as consulting, finance, technology, consumer products, healthcare, and nonprofits. What they do have in common is work environments that offer the ability to make an impact with a focus on agency, career development, diverse challenges, and responsibilities.”
Indeed, a record-setting 411 organizations hired Stanford MBA students and graduates for internships or full-time roles this past year—up 7 percent over last year and 34 percent from six years ago. A whopping 95 percent of employers hired just one or two students—an indication of the breadth both of GSB employers and student interest.
Uptick in Women Headed into Private Equity and Venture Capital
“In addition, we observed that the number of women going to private equity and venture capital has nearly doubled since 2014,” Richard said as part of the Stanford GSB article. “While we do not disclose fine-grain gender detail and the numbers are still small, we see a definite widening of the cracks in the glass ceiling.”
It’s no wonder that Stanford GSB women would increasingly be looking to break into PE and VC, since those fields yield some of the very highest pay days. The highest reported base salary for the Class of 2017—$285,000—went to a graduate headed into venture capital. Median base salaries for both PE and VC were $175,000, $40,000 higher than for the class as a whole. And it was a graduate headed into a private equity analyst role who reported the mind-boggling $450,000 in other guaranteed compensation. The median signing bonus for PE—at $50,000—was also the highest in the class (on par with investment banking). Though it was a graduate headed into a marketing role who claimed the highest signing bonus of the class, $77,000.
Timing and Location of Offers
Stanford GSB reports full-time offer and acceptance rates at graduation and three months out from graduation—as mandated by CSEA standards. But in past years—as this year—the school has made a point of underscoring the fact that its graduates’ confidence in their ability to find the perfect job sometimes means they hold out longer in accepting their ultimate position than graduates from some other schools. That said, 92 percent of the Class of 2017 had offers three months out from graduation—up two points over last year—and 88 percent had accepted offers, a five-point increase year over year.
In terms of where geographically the most recent Stanford MBA grads wound up, the West was the winner—with 62 percent of grads choosing to remain in the region. This represents a 3 percent decline compared to last year. “Counter to assumptions, only 35 percent of these West region jobs relate to technology,” the school notes. “Finance represented 26 percent, and consulting represented 15 percent.” The Northeastern United States drew the second-most Stanford grads, 16 percent of the class. Another 11 percent took international jobs.
Also of note, 16 percent of the class launched their own startups upon graduation, up one percentage point over last year. Leading industries for these entrepreneurial students include software (15 percent), finance (11 percent), healthcare (9 percent), real estate (9 percent), and internet services (9 percent).
More Grads Seek Socially Responsible Roles
Another notable shift in these most recent employment statistics is the increasing number of Stanford MBA grads heading into careers in socially responsible roles or organizations. Thirteen percent of this year’s graduates answered yes to the question, “Have you chosen a socially responsible role in a private business?” That’s up from just 8 percent last year, when the question was first introduced.
Watch this space for an upcoming piece that will highlight several Stanford students who chose internships focused on social impact this past summer—a Clear Admit exclusive.
This article has been edited and republished with permissions from our sister site, Clear Admit.
