MBA is business administration. You can understand this by following example.

Suppose you have a Bus service plying along the city. You hire driver, conductor, cleaner. Now you are a self employed businessman (in much smaller frame though.) Next you have 10 buses plying in the city. You need a business manager to manage everything from maintenance of buses to salary of drivers, cleaners, fuel cost,licenses etc. Sometimes you need marketing executives to get new partners in new towns to ply more buses etc.

Now you are a small scale businessman and all those managers are MBAs. MBA is a component of an organization and has nothing to do with all round development and conceptualization of business model.

A businessman plants a tree, does the initial nurturing, take risks of drought and excessive rainfall. Once the tree is good enough to live on its own, he hires some people to take care of it. Hence taking care of someone else plantation with some fruits already grown and a working method about how new fruits come with all information about seasons etc, is prime job of an MBA.

A startup conceives an idea, tests the idea, make a workable profitable business model. He needs MBA for management and expansion and not for development of initial business. A founder lays foundation, sets the rules, makes a road map. MBA has to walk on that road map, give his inputs but in the framework of business model.

Business schools teach you how to run a business. Real experience can teach you how to start a business.

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