Reid Hoffman | Philosopher vs MBA | Summary and Q&A

TL;DR

Philosophy and MBA degrees can both contribute to entrepreneurial success, with multi-disciplinary approaches and blending with other skills being key factors.

Key Insights

• ✖️ Philosophy, when combined with a multi-disciplinary focus, can contribute to entrepreneurial success by providing skills in reasoning, argumentation, and prediction.
• ✳️ Many MBAs prioritize risk reduction and career advancement, which may not align with the risk-taking mindset of entrepreneurs.
• 🧑‍🏫 While some aspects of entrepreneurship can be taught in MBA programs, real-world experience and active involvement in startups are crucial for learning entrepreneurship.
• 🧑‍💻 MBAs can be helpful for networking, particularly for individuals entering industries like venture capital where a broad understanding of different sectors is important. However, building networks through involvement in startups and tech communities is often more relevant for entrepreneurs.

Transcript

hello it's chris yay the co-author of blitzkailing and once again i'm here with my co-author and old friend reid hoffman the co-founder of linkedin and investor at greylock partners last time we had a fun discussion about why a knowledge of philosophy is actually a great asset for entrepreneurs we talked about some of reed's favorite philosophers a... Read More

Questions & Answers

Q: What are some of the negatives associated with MBAs and management consultants for entrepreneurs?

Reid Hoffman explains that the orientation of MBAs and management consultants is often risk reduction, job security, and future career preparation, which may not align with the mindset of entrepreneurs who are more focused on taking risks and building their businesses.

Q: Can entrepreneurship be taught through MBA programs?

Reid Hoffman highlights that while some aspects of entrepreneurship can be taught, such as market analysis and business models, the actual learning and experience of entrepreneurship is best gained through hands-on action and being actively involved in startups.

Q: How can philosophy be beneficial for entrepreneurs?

Philosophy can provide skills in reasoning, argumentation, and speculation about future scenarios, which can be valuable in entrepreneurial thinking and decision-making. Philosophy with a multi-disciplinary focus, such as blending with computer science or design, can be particularly beneficial.

Q: Are MBAs helpful for networking in the startup world?

Chris Yeh argues that while MBAs can build a valuable network, it may not be as relevant for entrepreneurs seeking to connect with brilliant technologists and engineers. Building networks through involvement in startups and tech communities can be more beneficial.

Summary

In this video, Chris Yeh and Reid Hoffman discuss the comparison between a philosophy degree and an MBA in the context of entrepreneurship. They explore the negatives associated with MBAs and management consultants, as well as the practicality and value of philosophy in entrepreneurship. They also touch on the importance of networking and multi-disciplinary approaches in both fields.

Questions & Answers

Q: What are some negatives associated with MBAs and management consultants when it comes to entrepreneurship?

Reid explains that while there are certainly exceptional MBA entrepreneurs and investors, the overall orientation of MBAs and management consultants tends to be risk-averse and focused on reducing risks rather than building something. Entrepreneurs, on the other hand, tend to have a bias for action and are more willing to take risks and build things from scratch. This difference in mindset and approach can create a disconnect between MBAs and entrepreneurship.

Q: Can MBAs be helpful in entrepreneurship if they have a bias for action and a focus on building?

Reid acknowledges that there are instances where an MBA's skills and experiences can be beneficial in the entrepreneurial journey. For example, if an MBA has prior experience in startups and is actively involved in the development and growth of a company, their MBA knowledge can complement their entrepreneurial mindset. However, it's important to distinguish between using the MBA knowledge as a supplement to entrepreneurship versus relying solely on the degree as a measure of entrepreneurship readiness.

Q: What role does networking play in the MBA world and how does it relate to entrepreneurship?

Chris and Reid discuss the value of networking in the MBA world and its relevance to entrepreneurship. They explain that while networking can be valuable within the MBA community, it is not necessarily beneficial for entrepreneurs looking to build connections in the startup world. The MBA network tends to be more focused on industries like investment banking and management consulting, whereas entrepreneurs need to connect with engineers and technologists. Building an entrepreneurship network requires engaging with individuals and companies in the startup ecosystem.

Q: Can philosophy be practically applied in entrepreneurship, or is it more of an abstract field?

Reid argues that practical application of philosophy in entrepreneurship is possible when considering certain aspects of the field. He highlights the usefulness of philosophical skills such as precise argumentation, reasoning, speculative thinking, and a focus on future possibilities. These skills can be valuable for developing investment theses, analyzing markets, and predicting how people will respond to new products or services. However, he emphasizes the importance of blending philosophy with a multi-disciplinary approach to entrepreneurship.

Q: Are there any successful entrepreneurs with a background in philosophy?

Reid believes that there have been successful entrepreneurs with backgrounds in philosophy, particularly those with multi-disciplinary focuses. He notes that individuals who combine philosophical thinking with other fields, such as computer science, design, or economics, tend to have a higher potential for entrepreneurship success. It's not simply having a philosophy degree that makes someone a good entrepreneur, but rather the ability to integrate philosophical thinking with practical, multi-disciplinary skills.

Q: Have you published your thesis in philosophy, and do you plan to revise it?

Reid mentions that he has looked at his thesis but has not published it yet. He expresses an intention to revise it in the future and update it with additional thoughts and insights he has gained over the years. While the thesis was initially an academic pursuit, he believes there are relevant concepts and ideas within it that could be refined and expanded upon.

Q: What are some things you've learned from the MBAs you've worked with in your career?

Reid acknowledges the value of collaborating with individuals who have MBAs, such as Sheryl Sandberg and Jeff Weiner. He explains that the MBAs he has learned from are those who blend their MBA knowledge with other skills and perspectives. For example, Jeff Weiner combined his MBA with a focus on compassionate management, while Sheryl Sandberg had a background in government and approached business with a focus on scale and problem-solving. The key is to bring a multidisciplinary approach to entrepreneurship and leverage the strengths of different fields of knowledge.

Q: Is an MBA helpful for understanding conventional business practices and building relationships?

Chris shares his perspective that an MBA can be valuable for gaining a grounding in conventional business practices and understanding the conventional wisdom of different industries. It can also provide exposure to a network of future business leaders. However, when it comes to entrepreneurship and networking with brilliant engineers and technologists, an MBA might not be as beneficial. Building relationships and connections within the startup world may be better achieved through working for high-quality companies and demonstrating an understanding of startup-specific challenges.

Q: Do philosophy and MBAs have a place in entrepreneurship, or are they better suited for different paths?

Reid and Chris agree that both philosophy and MBAs can have a place in entrepreneurship, but their contributions need to be integrated effectively. Philosophy can provide valuable thinking skills and speculative perspectives, while MBAs can offer knowledge about conventional business practices and networking opportunities. However, success in entrepreneurship ultimately comes down to the individual, their unique blend of skills and perspectives, and their ability to navigate competitive environments.

Q: Are there examples of individuals successfully combining philosophy and entrepreneurship?

Reid points out that philosophy can be combined with various disciplines to create a successful entrepreneurial approach. Individuals who have studied philosophy alongside computer science, design, or economics have shown potential for entrepreneurship success. Philosophy brings a multi-disciplinary perspective and the ability to think critically and speculatively, which can be valuable in developing innovative ideas and approaches.

Q: What are some potential pitfalls to watch out for when blending philosophy and entrepreneurship?

Reid highlights the risk of becoming too focused on abstract thinking and remote abstractions without engaging with the iterative realities of entrepreneurship. While philosophy can provide a foundation for thought experiments and reasoning, it's important to balance that with a practical understanding of real-world problems and execution. The key is to leverage philosophy as part of a multi-disciplinary approach and remain pragmatic in applying philosophical concepts to the entrepreneurial journey.

Takeaways

In summary, the discussion explores the comparison between philosophy and MBAs in the context of entrepreneurship. While there are positives and negatives associated with both fields, the ability to blend multi-disciplinary perspectives is key. Philosophy offers valuable thinking skills and speculative thinking, while MBAs provide knowledge of conventional business practices and networking opportunities. The success of entrepreneurship depends on the individual's unique blend of skills and their ability to navigate competitive environments. Ultimately, philosophy and MBAs can have a place in entrepreneurship, but their contributions need to be integrated effectively and balanced with practical execution.

Summary & Key Takeaways

• Reid Hoffman explains his nuanced perspective on MBAs, highlighting the tendency of MBA holders to prioritize risk reduction and job security, which may not align with the mindset of most entrepreneurs.

• He emphasizes that there are exceptional MBA entrepreneurs, but the orientation of the MBA program typically differs from the "just do it" mentality of most entrepreneurs.

• Chris Yeh shares his personal experience of leveraging an MBA to learn about conventional business and fill in knowledge gaps, particularly in areas like finance and accounting.