Since the 1970s, entrepreneurship among MBA’s has taken a steady downturn. According to the Graduate Management Admissions Council (GMAC), 23 percent of the graduating class became business owners, while only 5 percent of today’s graduates do. The majority settle into leadership roles in corporate careers. Given these overwhelming statistics, is obtaining an MBA still worth the time and money?

Arun Narayan, Senior Vice President of Risk & Analytics at Strategic Funding is a serial entrepreneur and venture capitalist. He earned his master’s in business administration with a major in finance — one of the country’s most highly esteemed and widely sought-after graduate degrees. Arun says it wasn’t until he went into business for himself that he learned how to manage cash flow, which is crucial to business success. Dun and Bradstreet report that 90-percent of small business failures stem from poor cash flow management.

“When you manage a business it’s all about cash flow and that’s something you learn when you run a business.” Here’s more of what Arun had to say about the value of an MBA vs. Entrepreneurship:

An MBA is worth it, but not Necessary

Arun thinks getting your MBA is worth it, “but it’s not necessary.” And for someone going into business for themselves, “it can give you better trajectory.” Especially if you’re seeking to raise capital. Arun says an MBA program provides you with two things: 1.) a professional network, and 2.) confidence to pitch investors, because at some point you’re going to need to secure capital.

Being Successful Without an MBA

In his time as a venture capitalist networking at start-up events, Arun says he’s met more entrepreneurs who didn’t possess an MBA than those who did. Joining professional affiliations is important because networking is pivotal to success. Some start-up networks offer mentoring programs and will also make start-up investments. The group you join will highly depend on your industry and the stage of your idea. A retailer or restaurateur may consider joining ICSC and attending national deal-making events. A tech start-up could join a co-work space or apply to incubators, like TechStars or Y-combinator. They offer enrichment programs and access to seed capital.

Remember to Protect Your Ideas

Arun believes that being knowledgeable about the basic economics and concept of the business is enough to start networking for investors or partners. At this stage, you don’t need a finished business plan. Also, remember to share your business plan with investors once they have expressed a willingness to invest. Before handing over any key information about your operations, Arun says it’s important to know who you’re talking to or meeting. Do your research! Ask questions before meeting potential investors.

Networking Groups

For those who are ready to pitch investors, Arun suggests Angel Investors Network and TIE Angels. Incubators and accelerators are a great place to start due to their guided support and direct access to venture capital firms. Additionally, public universities with technology and business schools offer mentoring programs.

So, while an MBA isn’t necessary to become an entrepreneur, the program can be a catalyst for unleashing ideas, building skills, and reaching your goals. However, Arun thinks someone whose truly entrepreneurial can accomplish this on their own – provided they network and find a mentor. Current MBA’s in pursuit of entrepreneurship should check out GMAC’s, MBA to Entrepreneur, a resource guide that encourages you to follow your passion.