Choosing between the Post Graduate Diploma in Management (PGDM) and Master of Business Administration (MBA) degrees has always been the topic of debate among many aspirants. But now the focus has changed from which degree will provide better job opportunities, to which one will allow students to create opportunities for themselves.
The answer to such questions is quite simple; it is only when we choose the right pathway that it leads us towards our goals. Let us see what exactly are these pathways, and how one can help entrepreneurs achieve more in life.
Understanding PGDM And MBA Programs
First things first. It is crucial to differentiate between the two paths of management education. An MBA degree is an academic program offered by universities affiliated with a governing university board. Its curriculum changes slowly and in line with its official processes because it is managed by such boards. The MBA degree provides students with a strong and globally recognized academic credential after completing the required period of study.
Post Graduate Diploma in Management or PGDM, on the other hand, is a diploma awarded by autonomous institutions, usually certified by the All India Council for Technical Education (AICTE). As autonomous institutions are not affiliated with any universities, they have the flexibility of updating their curriculum as per the latest industry standards within just a matter of weeks.
This is why PGDM degrees often offer greater relevance for market-oriented courses compared to MBA degrees that take longer to change their course contents.
Gaps In Traditional Education for Future Entrepreneurs
Nowadays, there are more people looking into creating innovative solutions rather than working for others and implementing existing ideas. However, not all educational institutions are prepared for that, including some top-rated MBA universities.
A typical case study taught in an MBA program may help graduates find jobs in consulting firms, banks, FMCG companies, etc. However, it would not provide them with adequate knowledge to become founders and entrepreneurs.
While an MBA program focuses on preparing its graduates for successful careers in established organisations, the PGDM can teach them valuable entrepreneurship skills, provided it has an Entrepreneurship and Innovation course integrated into its curriculum.
Reasons To Choose PGDM Over MBA
Several points make a PGDM degree superior to an MBA when it comes to future entrepreneurs:
-
Greater curriculum agility and flexibility: As we have mentioned above, PGDM programmes tend to incorporate newly emerging topics faster compared to MBA degrees due to their autonomy. A course in entrepreneurship and innovation will allow students to learn about the most advanced trends in the industry.
-
Better integration with the industry: A PGDM school often has more industry connections than an MBA programme offered by a university. It means that a PGDM degree can prepare candidates for future jobs much more effectively, especially in the case of an Entrepreneurship and Innovation course.
-
More emphasis on practical learning: Another thing that makes PGDM programmes superior to MBAs is their pragmatic approach to teaching management skills. The focus on practice and hands-on experience is a crucial factor for any entrepreneur and business manager.
-
Shorter time span and better preparation: Although the duration of a PGDM programme is the same as that of an MBA (usually two years), the former tends to have a faster pace and therefore prepares candidates more quickly.
The Importance of Specialisation
Another crucial advantage of choosing a PGDM over an MBA is the option to pick a specialisation from the very beginning of studying.
Although it is also possible to specialise in an MBA programme, in this case, the choice of majors may be limited. For instance, a PGDM in Finance and Banking Management programme allows its students to choose between three specializations: Accounting, International Business, and Entrepreneurship and Innovation.
Those candidates who opt for the latter get additional education from the very start, which is extremely helpful for future entrepreneurs.
Benefits of a Specialization in Entrepreneurship and Innovation
Specialising in entrepreneurship and innovation will provide students with the following benefits:
-
Validated business idea or prototype created during studying.
-
Personal mentor from the field of entrepreneurship and innovation.
-
Experience in pitching a business idea to real investors.
-
A cohort of like-minded students that become the team behind their venture.
Thus, a specialisation in entrepreneurship is beneficial for all future entrepreneurs who wish to found a company based on innovative technologies or business approaches.
Making The Best Choice for Yourself
Answer the following questions to figure out which programme suits you better, PGDM with entrepreneurship specialization or MBA:
-
Do you want to create a venture within five years? - PGDM with specialisation in Entrepreneurship and Innovation wins in this case.
-
Are you targeting positions at global corporations and multinational companies? - MBA may suit you better depending on the geography and industry you target.
-
Do you prefer learning through practice? - PGDM is definitely a better choice.
-
Would you like to be involved in the Indian startup ecosystem? - Then go for PGDM with a specialisation course in Entrepreneurship and Innovation.
Conclusion
Being an entrepreneur requires certain skills and knowledge that a university or institute provides its students with. Therefore, selecting a suitable programme is a vital part of their success. The PGDM in finance and banking with a specialisation in entrepreneurship is exactly what any future entrepreneur needs to have for success in the field of startups.
At Sparsh Global Business School, our students are provided with the best opportunities to obtain the knowledge necessary for becoming true innovators and entrepreneurs. Choose Your Entrepreneurial Path At Sparsh Global Business School!
FAQs
Which degree is better for starting up a business: PGDM or MBA?
A Post Graduate Diploma in Management is a better choice for aspiring entrepreneurs. It is more updated and flexible compared to an MBA degree and therefore allows candidates to prepare for the future much better.
How do PGDM and MBA differ in terms of recognition and accreditation?
Both degrees are fully recognized in India, but a PGDM is a diploma issued by an autonomous institution, whereas an MBA is a degree issued by a university and its governing body.
Can PGDM candidates apply for entrepreneurship funding?
Yes, they can. The process of applying for funding depends only on the applicant's idea and qualifications. A postgraduate diploma is a legitimate degree recognized by funding agencies in India.
What is being taught in entrepreneurship courses at PGDM programs?
Courses in entrepreneurship and innovation include various topics such as business model creation, market validation, lean startup methodologies, pitching techniques, and more.
Which degree offers a higher salary, PGDM or MBA?
The difference in salaries depends on the chosen institution and industry. PGDM programmes often offer better placement results compared to MBA programmes.
