Why MBA Students Do Not Pursue Entrepreneurship through Acquisition
A. J. Wasserstein, Mark Anderegg, Carlos Gila, Jason Pananos. (2022)
Yale Case, no number printed, June 30, 2022
Sample. "We identified 18 schools with a formal ETA course and asked faculty members to share our survey with their students. Thirteen schools (Figure 1) participated in our project, with the survey being sent to 880 students, of which 369 completed the study (a 42% response rate)." (p2). Schools include Berkeley, Booth, Cambridge, Columbia, HBS, IE, IESE, Indiana, Kellogg, LBS, Ross, Tuck and Yale (figure, p5). Headline numbers. "the 52 students launching a search fund represent 6% of the students in our data set who were exposed to ETA in a formal course." and "a scant 1% of the total student population." (p4). "137 (37%) students had no intention of ever engaging in ETA, and 182 (49%) planned to embrace ETA within the next five years" (p6). "Of the 52 students actually inaugurating a search fund, the vast majority (67%) plan to do so through a traditionally funded model. Self-funded searchers are the second most favored approach with 18%" (p4). Top reasons by count (figure, p6): need more experience 153, too risky 120, geographic risk 91, want more cash compensation 88. "60% of students believed they need more experience" (p7); "55% of students noted that ETA was too risky for them." (p8). Limits. The authors state no sampling limits. Reader's notes: the three intent groups sum to 371, not 369; the survey was sent by ETA faculty to their own students; intent is stated, not observed; the text gives accelerator 4% and holding company 2% where the figure shows 8% and 4%. A companion HBS listing of this note exists (not opened; see leads).