The Application Process

The number of business students launching ventures during school is seeing tremendous growth. According to Garth Saloner, outgoing dean of Stanford University's Graduate School of Business, at least 16 per cent of the 2015 class began a startup company. That percentage was in the single digits less than a decade ago.
While this occurrence is predicted to see steady growth in the coming years, it may actually be a Trojan horse when the long-term effects are factored into the equation. Saloner encourages MBA grads to consider the long game when it comes to their education, and to take caution when forming a startup while still in school.
With the revolution brought around by cloud-based software, founding a startup is easier today than it has ever been. Entrepreneur courses designed to facilitate the process are available even to non-business majors. Additionally, there are many startup summer camps and incubators available to student entrepreneurs.
The first nine months of 2015 saw $98.4 billion dollars get invested in venture capital-backed companies - an 11 percent jump over the amount for the full year of 2014. All of these factors have come together to create an environment favorable for students to make the leap and begin their own startup. Unfortunately, there are more dangers than readily meet the eye.
However, even though the facts and figures make startup creation incredibly tempting, there are potential downfalls to consider before getting started. While students will typically have the rest of their life to take advantage of all that startups may have to offer, there is only one chance to make the most of their time in school. Neglecting studies will usually result in lost opportunities.
Time spent distracted from coursework may end up quite costly, since the average tuition at public and private non-profit universities is approximately $70,000 per year. That figure, coupled with the fact that most first ventures will inevitably fail, can spell out financial disaster for the immediate years after graduation.
While there are many unfavorable side effects to consider, it is still possible for business students to launch a startup during their college years. When faced with a conflict of interest, students should ask themselves which action they will learn the most from. Startup activities should be thoughtfully scheduled around existing coursework obligations.
Business students may be able to make the process less cumbersome by taking on a partner or outsourcing certain aspects. Most schools now offer tools specifically to help student entrepreneurs - those resources should be fully taken advantage of by students who are considering a career in entrepreneurship or even thinking of working for a startup. Realistic goals should be set to ensure that valuable studies and experiences are not neglected.
While people like Steve Jobs, Bill Gates and Mark Zuckerburg dropped out of college after founding startups in their dorm rooms, not everybody will see the same amount of good fortune. By prioritizing education over immediate wealth, business students will receive a better education and gain more control over their future.